[lbo-talk] Keiretsu Capital

Doug Henwood dhenwood at panix.com
Tue Jan 13 12:10:44 PST 2004


Stephen Philion wrote:


>Everything I've read/heard/seen about China suggests there's been massive
>job creation; overall, real incomes do seem to be rising; mainland firms are
>climbing the technology ladder very quickly; investment levels are very high
>(maybe 30% of GDP, or higher); China's foreign reserves keep swelling; and
>Taiwan continues to flourish. What's the evidence to the contrary? (A real,
>not a rhetorical,
>question.)
>
>-- DRR
>
>--surely that cannot be all that you've heard?
>
>http://tinyurl.com/3bgnj
>
>China frets over unemployment, weak rural incomes

Of course, you can have both strong job creation and higher unemployment, if the economic transformation drives people off the land and into the cities searching for industrial employment. Rising employment can increase the size of the labor force, and if the LF increases more rapidly than employment, the unemployment rate will rise.

Doug



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