Global Growth Future Implosion?

As workforces shrink and opting out becomes increasingly attractive, Global Growth implodes on both the production and consumption sides. Toss in higher costs due to the depletion of the easy-to-exploit materials and the foundations of Permanent Global Growth crumble into dust.

As the charts below indicate, the population of elderly living off the labor of the younger generations will soar, putting increasing financial pressure on governments and pension plans. Scrape away the hype and obfuscations and all pension/healthcare for the retired cohort are pay as you go , i.e. funded by taxes on the current workforce.

As that workforce shrinks, the burden will quickly become unbearable. Promises made when there were four workers for each retire break down when there’s only 1.5 workers per retiree.

Two other funny things will also impact global growth: the sharp decline in birth rates in most developed and many developing nations–the Demographic Cliff–and the collapse of young workers’ willingness to sacrifice themselves on the altar of Global Growth (i.e. systemic inequality) via working in miserable conditions for low pay–wages that will never enable the purchase of a home or support a family.

Since it’s hopeless to secure “the good life,” why bother sacrificing one’s life? Why not enjoy life on a much more modest level?

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Maybe growth for growth’s sake isn’t such a good idea. How much is enough?

The Captain

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Thanks for sharing, but I don’t put much credence on this article. Most of these workers come from farm communities where subsistence farming is the alternative. In a bad year they might starve.

The factory work can be grueling but its likely they send money home to assist family. Their job raises the standard of living. Everyone benefits.

Its great to hear that some of these workers want to become entrepreneurs and start businesses. We know how risky that is. And how much hard work is involved. It won’t be easy, but wish them much success.

And lets remember that in the age of Mao these ideas were not even possible. Progress is being made. These folks seems to be learning capitalism. Dog eat dog. Very competitive. But some do succeed and get ahead. Hooray for them!!!

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Unfortunately the elites often look down on ‘work.’

Its great to hear that some of these workers want to become entrepreneurs and start businesses. We know how risky that is. And how much hard work is involved. It won’t be easy, but wish them much success.

I’ve seen it at work but the Pareto Distribution is relentless, only a few make it. But as Cunard used to advertise, “Getting there is half the fun!.”

Then there is the Titanic…

The Captain

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Bloomberg noted one of the significant factors behind the unrest, which began on Tuesday, was that newly recruited workers were highly disappointed with false promises about higher wages. Then Foxconn ‘apologized’ for a “computer glitch” Thursday that led to an “input error” for some staff to get paid less. The Apple supplier said it would honor contractual obligations.

> "Foxconn promised big money — up to Rmb15,000 a month — to quickly recruit thousands of new workers, but it doesn’t seem to have materialized. That is why workers were so disappointed.

“The company is known for claiming to provide high wages then breaking their promises,” Jenny Chan, a China labor expert at Hong Kong Polytechnic University, told FT.

What is the world coming to when the rabble can protest JC techniques? This is how great businesses are built!

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Yeah. What’s wrong with those workers? Don’t they realize what a big favor the “JCs” did them letting them work at all? They should be happy to work for free, dedicating their lives to the enrichment of the “JCs”. que standard screeds about “the dignity of work”.

Steve

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