Hah!! What? These are export economies, without the US and Europe as customers, these guys are toast! Why do you think the Nikkei jumps and dives whenever there's a report on US unemployment or other economic data? What do you think China'a economy is based on, besides a domestic housing bubble?
Not to mention that Japan's economy has been in a recession since the 90s!
The US may be heading down the toilet, but we still lead the world in innovation, just look at the number of international patents registered, and where the world's biggest tech companies are.
Not really the forums to enable us to discuss this in detail.
First of all this is all about money.
Europe and the US do not have the labor pool and in Europe they don't have space and the freedom of unregulated business to do the kind of piece work
China does. By labor pool I mean a combination of poorly paid workers (poorly is in the eye of the beholder) and space to work in.
If you look at studies by the Cato institute there is already a shortage of low skilled workers now in the US, hence the reliance on illegal immigrants.
(And more coming IMO)
Europe has no mass or raw material, so they have to do things with high tech, efficiencies and innovation and export.
As far as the economy is concerned there are already plenty of consumers in China (look at the cell phone market) and that market will be growing.
The US leading companies are forced to do their stuff outside of this country due to restrictive tax burdens etc.etc.
USA as a market to sell things to is big, but to me that doesn't mean the economy is.
It is IMO based on borrowing and we have only begun to see the effects of getting the real "invoice" for all the borrowing , credit card and mortgage over leveraged "business.
Add to that the unconscious behavior of the government (Doesn't matter left or right) and the US is bankrupt!
Bankrupt or not, we will be able to check this out on out iphones and ipads
🙂
