Letter: China’s growth
China has been among the world’s fastest-growing economies, with real annual gross domestic product (GDP) growth averaging nearly 10 percent through 2012. In recent years, China has emerged as a major global economic and trade power. It is currently the world’s second-largest economy, largest merchandise exporter, second-largest merchandise importer, second-largest destination of foreign direct investment (FDI), largest manufacturer, and largest holder of foreign exchange reserves. (Ref; Congressional Research Service by Wayne M. Morrison, DTD July 23).
Up until 1980, China was considered a backward country. They were unable to properly feed their 1 billion-plus population. Available jobs paid starvation wages. Heavy equipment jobs performed in modern countries were done by massive numbers of workers with hand-shovels. Life in China was a dismal endurance from beginning to end with no hope of improvement.
Now, China is a leader in the fields of technicality, medicine, agriculture and finance. They hold a large chunk of U.S. debt. One wonders how a magnanimous change could take place in a relatively short time?
Union demands for more money and benefits resulted in U.S. companies making progressive changes in location. First, they moved to states where unions were not organized. Over a period of years, the same problem grew to unreasonable levels. Finally, the only option was to move their businesses to other countries. Those countries, like China, became rich from American manufacturing.
The United States’ status presently is not good with millions of lost jobs and $17 trillion in national debt. If we are attacked as we were in 1941, we have a major problem. Massive numbers of production facilities that were converted to the war effort in WWII no longer exist.