Tuesday, 2 December 2014

Growth slows but sustainable wealth

The China's Manufacturing activity is a one of indicators of the Chinese economy; whereas, in November manufacturing sector expansion in china is the lowest in 6 months. This reflects adjustment policies delay of the Chinese government, government should change economical policies from maintain inflation rates to stimulate the economy.

According to “China's manufacturing growth slows again in November” Chinese The official purchasing managers' index (PMI) decrease that indicate the economic growth is still weak therefore the China's central bank cut interest rates down to 2.75% for first time since 2012 in an attempt to revive the economy.

The economic slowdown in China seem worried; that is the lowest growth rate since 2012; however, the economic slowdown is a good chance to reform, restructuring in economy sustainable growth. Throughout 30 years of growth in the Chinese economy has been encouraged by financial subsidizing, China has not think rapid growth will leads to long-term economical affect from economy, environment, social gap to inequality of income to the government debt to public health problems, which are all connected up like dominoes.
Cutting interest rates down cause of many loan low return benefit, create overproduction that is drawback to pollution, resources devastating and long term trading- less consumer less than product.-So if China wants to restrain problems in the future, government should use market price and market mechanisms instead of subsidize that create huge debt - low returns to the government, cutting labor wage down against market prices.


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Reference
China's manufacturing growth slows again in November. (2014, December 1). BBC News  Business. Retrieved from http://www.bbc.com/news/business-30272091

1 comment:

  1. Thip makes some strong proposals for the Chinese government. As I was reading, I was wondering whether the same economic principles should be adopted by the Thai government.

    Do you also think that the current Thai politicians should stop subsidizing rice, rubber, cooking oil and other products, instead allowing free market forces to operate?

    And should the price land also be determined by free and open market forces, where, for example, foreigners may freely buy and sell land?

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