The Wall Street Journal reports today that there is a growing chorus in China to end the one child per family policy. The leadership there is quite worried that they will not have enough workers to maintain economic stability in the near future.
If you read the article at the WSJ, it’s pretty clear the thumb suckers on Wall Street are really worried, too.
China’s economy “slowed” to a 9.7% growth rate last year. The United States would be thrilled to have a steady 3% growth rate. Right now it’s less than 2% annually, and that includes $1 trillion in stimulus a year that accounts for half of that “growth.”
China adds one million jobs each month. The United States struggles to ad 150,000 new jobs, most of which are part time and many of which are low wage. (One third of American families don’t earn enough to meet the basic necessities.)
We need 300,000 new jobs a month for 4-5 years in a row just to get unemployment back down to its historic norm of 4%.
Most other major western nations are struggling with the same issues as the U.S. with job creation. If you look at the big picture, China is creating all the new jobs in the whole world.
China is where all the economic growth is happening. They’re growing so fast, using their 40% devaluation of their currency (they keep it fixed at a 40% lower rate than its true value, if the currency floated like everybody else’s, versus the dollar), they’re leaving the rest of the world behind in the dirt.
The U.S. workforce is roughly 150 million. We have almost 20 million workers who are un- or under-employed. Our national unemployment hovers around 8 percent. It would be 12% if 7 million people had not dropped out of the workforce completely.
The Chinese workforce is 935 million. Their unemployment rate is 4%. They’re horrified that their workforce actually dropped by 3.5 million people last year. That’s the motivation behind stopping the one child per family policy.
A loss of 3.4 million people in China changes their unemployment rate by 0.4% (four tenths of a percent).
A gain of 3.4 million jobs in America would lower our unemployment rate by 2.5%. The number of jobs available in the U.S. has actually decreased by 4 million since Obama took office.
It’s time the rest of the world took action to enforce China’s one child per family policy. To stop it would allow China to use their artificially low currency valuation versus the dollar to suck all the growth in economic prosperity and jobs from every other nation on earth.
For China to stop their one child per family policy would be economic war on the rest of the world.
It’s going to be an uphill battle. Obama loves his fellow socialists in China, admires then, adores them even. Wall Street is pretty keen on the Chinese, too. They have applauded over the last 5 years as 60,000 U.S. factories have shut down and moved to China.
Wall Street lobbies Congress to keep from labeling China a currency manipulator, about the way they keep their currency pegged 40% below value versus the dollar. They don’t want unemployment to drop anymore in China because that will cause wage inflation and reduce their profit margin.
Who’s side is Wall Street on anyway?
China’s, of course.
P.S. At present there is actually an average of 1.8 children per family in China. Here’s a graph of their population growth since the one child per family policy was started in 1978.
One child per family should have cut the population in half by now. Instead it’s almost doubled.
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