obamaconomics

[GoldenBoy812]

You are absolutely correct:thumbsup: Most analysts project the the torch to be passed somewhere between 2015-2025 at the latest.

There are only two possible ways, one being to more than double their population, the other by merely improving their production efficiency by about 20%.

China has just unleashed a stimulus package, in terms of % of GDP, would be roughly equivalent to the initial US bailout package.

China: ($586 billion) / ($10.7 trillion) = approximately 5.5% of GDP

US: ($13.3 trillion) * (.055) = approximately $732 billion

What this suggest is that China, in the upcoming years, will greatly improve production efficiency, by upgrading their infrastructure, and providing more growth opportunities for their citizens with this stimulus.

[wolfgar]

in your responses goldenboy you seem to really think a lot about efficiency, total cost of material goods. It makes me want to tell you about my point of view in which efficiency is not such a good thing, where just because something can be made cheaper does not make it better. I really dont think mankind is alive on this planet to be slaves to material goods, in fact i dont think anyone will tell you they think they should be. It seems to me that is exactly where we are headed(some would say where we are). Economic models that dont take into account their impact on society have become the norm. Should people have to work so much? I often wonder how long it will take before efficiency is measured in how much time one man has to work at production to have a quality life.

If your rich or aspiring to be so, my words will sound like total retardation, if you are looking at spending the rest of your life working just to survive you might have a similar outlook. i know that my words were all over the place but you prolly have the basic idea of what i am saying. It would take hundreds of pages of text to explain everything that's in my head about this being that i have spent alot of my years thinking about this very thing. If someone wanted to pick apart my words and find holes ...well there is a lot of those i know

[maladroit]

efficiency via automation doesn't just make things cheaper (while reducing employment), it makes retooling to adjust for product changes more expensive too...the benefits of efficiency on a production line are limited if they are making something that isn't in demand

[GoldenBoy812]

efficiency via automation doesn't just make things cheaper (while reducing employment), it makes retooling to adjust for product changes more expensive too...the benefits of efficiency on a production line are limited if they are making something that isn't in demand

That really is the trick you see. The demand of a product is essentially reliant on two factors. The first being the availability of the product (supply), and the second is price.

Say's Law: "Supply creates its own demand"

Regardless of whether it is a machine producing, or human labor producing; it is extremely inefficient to produce a good or service that lacks overall utility.

Take the auto industry for example:thumbsup:... Auto's are in demand, even though it is slumping at the moment. The only rational thing to do is lay off workers and curb production until real demand increases. Lowering the price would definitely increase the demand for any car or truck on the market.

[maladroit]

us automakers have been handing out price incentives to the point of bankrupting themselves and they still haven't been able to reverse declining US auto sales since 2004...during the same period US and foreign built japanese car sales increased even though they're more expensive to buy...the higher price should dictate lower sales but the reverse is happening because japanese cars offer better quality, and better choices

GM, Ford fall; Asian sales rise | Autonet.ca

[GoldenBoy812]

us automakers have been handing out price incentives to the point of bankrupting themselves and they still haven't been able to reverse declining US auto sales since 2004...during the same period US and foreign built japanese car sales increased even though they're more expensive to buy...the higher price should dictate lower sales but the reverse is happening because japanese cars offer better quality, and better choices

That article is from 2005...

Something a little more recent:Thomas: Unions the reason Big 3 automakers teetering | CARS AND SOCIALISM