D
This is called Neoliberalism. In a neoliberal capitalistic economy, there will never be real economic growth either it is first or third world. It is all a sham by the elite class. Growth is impossible when all the profits go into the pockets of the elites.
Neoliberals claimed globalization and capitalism have lifted millions out of poverty and this is the single greatest sham of capitalism. The deal that was stuck by neoliberals all over the world was to move manufacturing from rich countries like America to poorer ones China and it was seen as a win for all parties. As a result China gets to enjoy the newly moved manufacturing jobs. America on the other hand with those jobs gone would begin the work to transform its economy from manufacturing into service based one.
Here lies the problem. A service base economy doesn't provide any actual value. It is full of jobs like banking, trading, insurance, investing, sales, hr and all the management jobs. There is only a limited amount of such jobs available and everyone else is stuck with lowly paid dead end jobs. As Americans get poorer they lose their purchasing power. And there lies another problem. How are they going to buy the goods made in china? The answer, credit. This is why America has the largest debt to GDP ratio in the world.
But how what happens to the people in China? Sure they get to enjoy a slightly better standards of living. But with the pay that they are getting, they will remain poor for forever. With such wages, they will never get to use the goods they produce. Everything is being sent over to the first world consumer. It is absurd that someone don't even get to consume the food they produce. The standards of living can never improve in such a circumstances.
The solution to this problem? Abolish neoliberal capitalism. Rebuild the manufacturing base in the first world and reduce those useless jobs in the service sector. Have the third world keep what they produce and provide genuine aid to them and not exploit labor.
Neoliberals claimed globalization and capitalism have lifted millions out of poverty and this is the single greatest sham of capitalism. The deal that was stuck by neoliberals all over the world was to move manufacturing from rich countries like America to poorer ones China and it was seen as a win for all parties. As a result China gets to enjoy the newly moved manufacturing jobs. America on the other hand with those jobs gone would begin the work to transform its economy from manufacturing into service based one.
Here lies the problem. A service base economy doesn't provide any actual value. It is full of jobs like banking, trading, insurance, investing, sales, hr and all the management jobs. There is only a limited amount of such jobs available and everyone else is stuck with lowly paid dead end jobs. As Americans get poorer they lose their purchasing power. And there lies another problem. How are they going to buy the goods made in china? The answer, credit. This is why America has the largest debt to GDP ratio in the world.
But how what happens to the people in China? Sure they get to enjoy a slightly better standards of living. But with the pay that they are getting, they will remain poor for forever. With such wages, they will never get to use the goods they produce. Everything is being sent over to the first world consumer. It is absurd that someone don't even get to consume the food they produce. The standards of living can never improve in such a circumstances.
The solution to this problem? Abolish neoliberal capitalism. Rebuild the manufacturing base in the first world and reduce those useless jobs in the service sector. Have the third world keep what they produce and provide genuine aid to them and not exploit labor.
