Wealth builders: China and the developing world forge ahead
The wealth builders in our world include not only the Chinese but many other developing countries. Do these countries pose a threat to us here in the U.S.?
For example, Chinese demand for the world's resources (oil, copper, timber, food, etc.) has grown even in the midst of our current recession. And demand has grown in other countries, particularly in Asia.
John Stossel (of "Give me a break" fame) wrote in The Freeman last year that increasing demand on the world's resources by the people of developing countries like China, India, et al does not spell a lower quality of life for Americans and for the West in general. As more and more people demand more and more goods and services, opportunities grow for entrepreneurs who come up with innovative ways to deliver the goods and services. In fact, with the number of consumers on the rise, businesses will find some products and services that were not profitable in the past to be worth producing in the future, thereby providing more for everyone.
While this may make sense in the long run, this does not preclude short-term dislocations and suffering as new demand for existing resources drives the prices of oil and agricultural products ever higher. Of course, the recent recession has caused many prices to drop as demand has decreased. The longer-term, we'll see demand pick up again.
And the long-term picture seems to brighten as more goods are produced, in response to demand, thereby leading the trend back to lower prices. That's just the way supply-demand works. Prices go up in response to an initial spike in demand. Then more is produced to meet demand, ultimately leading more supply to meet the demand. Prices don't go up so much; sometimes they even fall back a bit.
If Stossel's right, the "entrepreneur card" may help in the long run. Creative business minds will spot opportunities in a changing world economy and create products and services to capitalize on those opportunities. It's certainly a positive, even appealing picture of the future.
Meanwhile, let's hope that U.S. entrepreneurs continue continue to be the wealth builders they have been in the past. And if the wealth builders around the world spread the wealth around a little, that's not so bad, is it?
What about us lowly mortals working in our humble occupations day in and day out? Well, we're wealth builders too. Save your money and invest it safely and you'll build wealth. The Chinese won't mind.
For example, Chinese demand for the world's resources (oil, copper, timber, food, etc.) has grown even in the midst of our current recession. And demand has grown in other countries, particularly in Asia.
John Stossel (of "Give me a break" fame) wrote in The Freeman last year that increasing demand on the world's resources by the people of developing countries like China, India, et al does not spell a lower quality of life for Americans and for the West in general. As more and more people demand more and more goods and services, opportunities grow for entrepreneurs who come up with innovative ways to deliver the goods and services. In fact, with the number of consumers on the rise, businesses will find some products and services that were not profitable in the past to be worth producing in the future, thereby providing more for everyone.
While this may make sense in the long run, this does not preclude short-term dislocations and suffering as new demand for existing resources drives the prices of oil and agricultural products ever higher. Of course, the recent recession has caused many prices to drop as demand has decreased. The longer-term, we'll see demand pick up again.
And the long-term picture seems to brighten as more goods are produced, in response to demand, thereby leading the trend back to lower prices. That's just the way supply-demand works. Prices go up in response to an initial spike in demand. Then more is produced to meet demand, ultimately leading more supply to meet the demand. Prices don't go up so much; sometimes they even fall back a bit.
If Stossel's right, the "entrepreneur card" may help in the long run. Creative business minds will spot opportunities in a changing world economy and create products and services to capitalize on those opportunities. It's certainly a positive, even appealing picture of the future.
Meanwhile, let's hope that U.S. entrepreneurs continue continue to be the wealth builders they have been in the past. And if the wealth builders around the world spread the wealth around a little, that's not so bad, is it?
What about us lowly mortals working in our humble occupations day in and day out? Well, we're wealth builders too. Save your money and invest it safely and you'll build wealth. The Chinese won't mind.
Comments