The Hidden Paradox of Globalization
Bridging the gap between the public sector and the private sector in China can’t just be done on behalf of consumers from China. It is actually more effective than ever. China’s government has set an agenda across the world for cutting its public sector workforce by 65 percent. On top of that, the government’s plan to raise the minimum wage from $7.00 in 2009 to $15 a month, plus any other changes that the government proposes by the end of 2015, is making China more generous toward the “poor.”
That’s a bold policy move in a country that’s only trying to turn a blind eye to its rising share of the world’s wealthy. In fact, the government has put forward $21 billion in infrastructure investment in China last year alone. In 2011, $15 per day was the most ever for China’s government, with $17.1 billion in capital investment. To put that data into context: On average, China’s government spends $30,000 per family for a child every year.
China’s population is rapidly growing. In 2011, a further 34.7 million people grew up here. Now that’s just a small fraction of the population, and a quarter of all Chinese children are over 16. It will take an enormous change to break that one out at home.
A lot of these changes should be happening in China’s capital cities like Beijing, Shanghai, Hangzhou, Chongqing, Guangzhou and Chongqing.
So when we look at how China has changed over the last couple of decades over these past 17 years, we see a trend that shows us that a country with the same demographics as the United States with the same national policies as China is making dramatic changes.
And it shows us something that our government is doing right now: Increasing the amount of capital investment allowed in Chinese cities. It means making sure everyone in a city has access to health care, education, transportation, a minimum wage, a decent social safety net and social security that is affordable, accessible and affordable by means of paid health care.
- It means providing basic services like universal preschools, free high schools and private school textbooks.
- It means providing schools with modern health care and basic education programs.
- It increases public security and reduces the need for emergency medical services.
And it encourages entrepreneurs to establish businesses that are more profitable and more efficient. By creating more economic activity, those entrepreneurs are more likely to succeed.
It increases investment for local authorities, which increases their efficiency, and protects the local economy.
That is why a lot of this action is happening in cities across China.
We have seen a major shift: From rural to urban centers in China have seen a rapid growth in Chinese capital investment in areas like schools and education, which leads to a surge in the number of businesses. That’s part of the story of the China economy.
And what a huge boost that investment is doing for local governance in Beijing — the power of government that controls the growth of local economies, like China — has proven in the last few years. This growth has led to a tremendous increase in capital spending (and higher wages for local officials), including high level salaries for senior officials, more efficient public transport, free basic services such as schools and social security, and an even more advanced public transport than the ones available in other cities.
And these things show that a country that has traditionally been considered “middle-class” is now a “classless country.” The economic growth that shows is the same across the world, and it goes to show that China’s government can get more benefits than the rest of the top one percent in a society.
Our country had a great growth spurt that was great for the world, but it turns out the US didn’t get a bigger increase. The U.S. has actually been more successful than the rest of the world that is in building infrastructure — infrastructure has led to many high-speed rail and high-speed broadband.
We got bigger gains, like building 50 percent more schools and infrastructure.
That’s not much of a stretch. And what’s also great for the US is the growth in the number of people coming to our shores every year to work in American manufacturing, starting in the late 1980s.
And for the next 17 years, we will be growing. It’s the biggest development in 25 years, especially by the U.S. I believe.
That’s what’s going to make China really proud. A country that is truly a global success story.
So while it might sound bad to think that there is a certain point in which China will turn its back on US investment, it’s still pretty clear.