China and Sweden

Menzie Chinn basically states that while the numbers might express that there is under-investment in China, he speculates there need be more Consumption, and less Saving and Investment. I agree with that assertion. The Chinese economy remains directed towards Exports, with foreigners providing the major elements of Chinese investment development. These foreign concerns express little interest outside of production for Export, cheap labor, and hold no desire to revolutionize the internal Chinese consumption markets. Native Chinese businesses are not taking Steps to organize and technologically advance the domestic Consumption markets. High Production will generate higher Wages, curtailing foreigner desire to invest in China, and will overbear the traditional Chinese domestic markets. China must start thinking in terms of Consumer Credit, before higher Wages and higher Production Costs leads foreign investment to drift away from Chinese shores.

Stefen Geens takes a savage look at the opposition of the Swedish LO, or umbrella union organization. The Landsorganisationen, though, makes the severe point: this is a real threat to the unions, and violates a trust of long duration. No one can doubt that the revisions will lower the Standard of Living of labor in Sweden over the long haul. No one doubts there is need to compel labor to find alternative employment. There is equally little doubt that Businessmen intend to turn compelled lower Wages to labor into profits for themselves. A Solution must be found unless All want to endure vast labor unrest. What to do?

My suggestion is legislation passed stating Unemployment Benefits will make up the difference between the lower-Waged Employment and their union Jobs for a Period of five years past the alternative Employment, guaranteed union employment when Jobs reopen, with Business detailed to negotiate Wage rates with the LO throughout the period of Employment of union membership. The Above, combined with the lowered Unemployment Benefits schedule, will generate the labor employment necessary, with security for the labor involved. lgl