Economic index, consumption and unemployment rate
Tuesday, November 30th, 2010 From 2009 to 2010, Obama and his economists promoted stimulate package to raise employment rate. They give a few hundred billion dollars bail out to different kind of consumers and the unemployment rate was still at about 9% in the end of 2010. They simply believe that when merchandises were sold from the stores jobs will be increased in the market.
Please see how the Chinese economists consider unemployment issues. Around 2002, the labor cost in China was 3% to 5% of Japan and was 10% to 20% of Korea and Taiwan. 60% of their labors finished high school. The labor’s salary rate and quality gave them good advantage to attract foreign investments. However they still had a careful research about their job market. They found out that from 1999 to 2002 their economic increased 7% up each year and the unemployment was increased from 3.1% to 4%. They concluded that economic index increasing didn’t mean that employment would increase. The reason was that the high tech and modern equipments might give economic a big development but could not provide jobs as we expected.
They also noticed that jobs demanding usually were growth faster than jobs supply. Every year they could only create 7- 9 million jobs but the new job demanding are twenty to twenty- two million a year. They had a conclusion that for the stable of their society they need to have different kind of business structures that forms a shape of pyramids. They not only develop high tech but keep businesses that require labors. They even consider what should be their priority goal: developing economic or maintaining jobs.
Our economists, those teach in the top university of the world and those received Nobel price never make this kind of contemplates. They close their eyes to promote a one hundred year old economic theory. They tell people that when consumption goes up employment rate will go up. They don’t care that in the age of free trade we lost the control to our businesses and manufactures – the important chain connecting merchandise market and jobs market.
I once posted my comment in Paul Krugman’s blog discussing his consuming philosophy. I said this was the situation:
Base on scientists’ prediction, steam catching cold weather in the sky will turn to be rain. We desperate need rain. Our economists tell us to put the last water we have under the sunshine – turn that water to be steam and hope that the steam will become rain one day. They don’t care the rain will fall down at when and on where and they don’t mind that things they use to catch the rain have a big hole.
All these years our economists try to set a formula like Newton’s speed x time = distance. They believe that having a formula to explain every situation economic will be sure considered science. They try to be the leaders of our society. However, when things collapse they will walk away. They will say things collapse because people lose their trust to politicians. So that is a political issue not economic issue.
I am so harsh to the misleading they created because they made our president who is not smart enough to spent huge money to stimulate the consumption. They make the American suffer from another big lost after losing huge money in the wars of anti-terrorism and we cannot offer to take that kind of lost anymore.

