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The Coming Decline of 'Made In China'
retroworks writes: Adam Minter documents the move of Chinese steel mills to Africa, and speculates that China's years of incredible rates of economic growth may already be over. This one steel mill's move to Africa, by itself, increases Africa's production by two-thirds. "The officials in Hebei Province who oversee the company may have felt they had no choice. First, they undoubtedly faced political pressure to reduce their environmental impact in China: reducing production of steel, cement and glass -- all highly polluting industries, especially in developing countries -- will have a direct impact on Xi Jinping’s pollution goals. (Starting in Hebei will have the added benefit of cleaning up polluted, neighboring Beijing.) Second, Hebei may simply be at a loss as to how to scale back businesses that they recognize have become massively bloated. Officials in China’s construction-related industries clearly have too much capacity and too little demand." It's also possible that these moves will be encouraged by China's transition to clean economy, though that could be a bad thing for pollution in Africa.
Wrong. Jobs are created by people coming up with ideas for new businesses based on new products and best product ideas come from people trying to solve their own problems in life.
Saying that demand creates jobs is fine, when the jobs in question are in very well understood industries, but it is wrong even then, because all new supply brings down prices even further and creates more choices. So in reality SUPPLY creates new demand, because the bigger the supply, the lower the prices.
If TVs cost 1000USD per unit, everybody has one. If TVs cost 10USD per unit, everybody has 20.
If TVs cost 1USD per unit, people build houses out of them maybe.
However before TVs were supplied by companies that went into that industry there was no demand for TVs at all, nobody knew what the fuck 'TVs' were.
Supply created the demand.
Supply of poetry created the demand for poetry.
Supply of ballet created the demand for ballet.
Supply of space ships will create demand for space ships.
Supply of terraformed planets or space stations will create demand for them.
Currently only the very rich can afford to buy luxury yachts, but if the price for a yacht came down to the level of a new car, then demand for all these yachts will be created where there was very very little before.
You can't handle the truth.