I just wanted to raise discussion about two trends, which are exist and which are causing certain social problems in a way or another..

The first trend is the China syndrome.. The idea with this phenomenon is that the markets of the developed world and developing world are now pretty much intergated. It causes the following result: the working class in developed world is competing with the people of the developing world..

It is one reason, which causes first the structural and massive unemployement in the Western world (especially in Europe), but also the sinking wages (especially in the U.S).

On the other hand, this can be seen partly beneficial for the developing countries. Still, the low-paid workers are unlike to grap the benefits. This especially, if the existing local economy was destroyed as the markets globalized.

The biggest benefactor of the China syndrome is the capital owners. Then perhaps, the rich and middle class in the developing world. IMO, we can consider the sweatshop workers lucky only, if the alternative was certain death.

The moment, when the China syndrome will cease to exist, is the moment, when the developing world markets will be filled with capital and faces a labour shortage. The situation reminds me of the 1800 England, with the exception, that the ending conditions might never fullfill.

The second trend is the growing automatization and therefore the growing capital intensity and the reducing need of labour.. Like the China phenomenon, it is a trend, which end can not been seen.. The human being has become more and more replacable with the machines.. This is another trend, which will reduce the need of unskilled workers or workers overall..

What we might realize is that we have almost limitless workforce reserve and also growing efficiency, what it comes for processing resources. Now I would like to remind of the following thing.

How the benefits of the economy will divide, will depend of the supply of labour, resources and capital. Now it is good to realize, that the nature will grant us it's own limits and bottlenecks, which are hard to break. One bottleneck might be labour, another is resource. If the bottleneck is labour, the labour will grab the benefits. If it is the resource, the capital (resource) owners will gain the benefit and the labour costs will sink.

Predicting with these trends, and accepting the limits of the natural resources, my guess would be either increasing unemployement in the Western world or disappearing work compensation. The trend of growing unemployement and the increasing gap between rich and poor has been existing since 1970s, when the trade started to open.

Is there a reason, why the trend had stopped or would stop in the future?

I don't know.. Which are your opinions?

- BtD

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