Tuesday, May 15, 2012

As Neoliberal Global Economics Dies, Foreign Investment In China Continues To Drop

We noted early this year that China’s economy almost certainly started the process of implosion in December of 2011.   The data since is confirming quite substantially.  Foreign investment continues to fall as does China’s corporate earnings. 

The status quo believes foreign investment is necessary for an economy to grow.  What is often cited is that foreign direct investment is a method of increasing jobs in a particular country without increasing taxes.  Or, that it signifies economic openness.  Those are just about the most preposterous notions one can dream up to explain this nonsense.    As I have remarked before, the U.S. does not need foreign capital because we have been told we are bankrupt.  This is a nonsensical myth that has gained traction in the last few decades and now said myth is being used as a wedge to dismantle our government’s services. 

Foreign direct investment is oftentimes not democratic investment.  It is instead labor arbitraging of predatory corporate interests or other equally unsavory dynamics.  And because of that, political extortion, bribery and corruption almost always go hand in hand with foreign direct investment.  We saw this in spades with German companies being systemically involved in corruption cases with foreign officials in the EU.  We see this in the United States in the form of tax subsidies and other economic breaks for foreign firms, thus leaving domestic firms at a disadvantage.  Courtesy of political idiots, of course. 

Every nation on earth has an ability to be generally self-sufficient except when involving geographic or land mass issues possibly involving raw material shortages. 

Title link here.

posted by TimingLogic at 10:28 AM

Links to this post:

Create a Link

<< Home