About China.

I was thinking in the car today - and I don’t do that often, so forgive me - that most of our commodity goods that subsidize our lifestyle come from China. But this won’t last long, as two things are going to get in the way: first off, the rising standard of living in China; and secondly, the rising price of natural resources all over the globe.

At which point our debt level will come back to haunt us, as will our sky-high standard of living which will be unsustainable when spread across not only North American culture and Japan but across North America, Japan, Europe, and a great deal of China.

Dan (Not a fan of commodity [read: cheap] goods.)

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Posted June 23rd, 2005 in main.

4 comments:

  1. Geof F. Morris:

    Actually, someone else will do it after that. :)

    June 23rd, 2005 at 5:47 pm
  2. daniel:

    You have to wonder what happens, though, in thirty or fourty years when we run out of places to have our commodity goods made and a substantial portion of the globe has come to expect and American-style standard of living.

    June 24th, 2005 at 7:33 am
  3. Geof F. Morris:

    Economics has an answer, though: commodity prices rise. Wages will rise commensurately. Lather, rinse, repeat. Services get built on top of the commodities. Lather, rinse, repeat.

    June 24th, 2005 at 12:54 pm
  4. daniel:

    There will have to be some sort of world-wide levelling effect though - otherwise you have a feeback of loop of commodity prices rising, wages rising, and commodity prices rising again because of the higher wages.

    June 24th, 2005 at 1:23 pm

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