In today’s MSNBC World Business section (yes I do read MSNBC is nothing more then to balance by views and find out wat the radical left is thinking) I saw this article that hit home on multiple levels. In the ‘China is hiring, and young Americans are going: Many find it easier to get work as their friends are idled at home‘ article I realized a sad truth about my own country, we have past the point of no return. Here are my observations and thoughts outlining this.
People coming to China to expand, enrich, or explode their career oppertunities is nothing new. Since the reforms of the 1980’s allowing some foreign companies to dip a toe into the massive potential market young and old seeking strong footing in the market have been coming here. Even over the next 30 years more and more foreigners have been coming here as companies expand or get come into existance, this is nothing new. Here is what is new.
Since China joined the WTO certain things have been set into motion, for one – the oppening of the banking system here. Since the meltdown of the US and EU banking systems and employment fallout these professionals are not going to work at the local 7/11 or McDonalds. No they are going East, the Far East. Emerging markets here are not is strong shape in banking, they need experience, even if it is from those who worked in the very system that reset the world economy last year. This marks a huge brain drain of educated and experienced financial market workers.
In my 3 plus years here I have always been aware of one simple fact, there are two types of foreigners here. One kind is the classic ex-pat, the high level corporate manager or executive who is taking a temporary assignment here and has a MASSIVE pay package that includes more then you can imagine. The other are people who come here to study and then maybe work, open a busioness, or try their luck in a breakneck growth in Chna’s top tier cities. The article states in 2008 the foreign workers in China have risien from 210,000 to 217,000, a small percentage but marking the start of a trend when looked at through a wider angle.
College graduates and young un-rooted adults are starting to come here. Walk down the bar streets or go to the luxary malls on weekends and you see them, the mid 20’s to 30’s from the States and Europe. You see more Indians and Middle Eastern people here too, signaling it is more then just an issue for America and Europe. Why is this significant? It states that the American economy and country has passed the point of no return. Europe has been muddeled in stagnant economic conditions since the EU was founded and based off their lack to procreate fast enough to maintain a healthy population base. The Middle East is drawing closer to Asia as the emerging economies are taking more and more of the oil wealth and money then any other region in the world. China has overtaken South Korea and is about to overtake Japan as the #2 economy. The economic/political environment in the US is not enstilling enough confidence in the future to retain enough attraction to gain H1B1 visa applicants or even its own ambitious fresh graduates.
The talk in the media is throwing around exploding deficits, exploding budgets, increasing regulations, massive unemployment and home foreclosure. This is scary stuff to young professionals. These people, the sub generation behind mine, are not dumb and they see where the winds are blowing now. The baby boomers are retiring. This takes the largest segment of tax payers out of the economy. This places the largest segment of the population into more frequent medical visits and drug usage. This leaves the current population, who have never found a common thread to rally around, to pick up the burden of work and financing the country. Many of these people are not likeing what they see, some are taking a huge leap into a new market.
The article mentions that the marketplace of China now is like the US in the 1930’s. This is telling because it means the world’s oldest civilization is poised to retake their past position as the world’s leading civilization in less then 20 years. How? Well, first off by attracting the young talent and older talent who are not afraid to take risks, and honestly what is more risky then moving to China from the US to find a job. There are a ton of jobs here, most of which are NOT English teachers but it is a classic starting point. The cost of living is low and many companies here are new, young, or transitioning. Sure, the classic ex-pat, the upper level manager/executive is on the way out as companies are ‘localizing’ to save money, the problem is the talent pool here does not have deep experience. The brain drain, experience drain, and fiscal stability are things America is losing to China. China also offers one thing we have not seen in America in the past 10 years, isolation from politics and fear mongering media. If one is so inclined they could unplug from politics and media based fear compleatly here, and most seem to want to skip the anxiety and just go about their lives.
America needs to change, but the changes seen there now are resulting in more people coming here who have the talent and ambition to succeed moving to China faster, thanks in part to a stagnet American labor situation. This is not a huge issue, yet, but as time goes by and these people stay here and spread the word of mouth of their experience more and more will follow. This leaves the country with people who are unable to or unwilling to move aborad and to work things out at home. China meanwhile will have a massive competitive labor market and will reap the rewards of all this as they reapidly overtake the US economy and leading position on the world stage. Fixing the economy, healthcare, budgets, etc. means little to the recent college grads or future grads, to them its about jobs and getting into the lives they have seen on TV their entire life. The current American environment is lacking its ability to provide this more and more each passing month, China is more then able to provide it.
The only profitable division of GM is the SMG Buick division. Yum Foods (KFC and Pizza Hut) are making more in China then America and have more market growth in China where America is nearly saturated (and liberal taxes and policies will hamper future earnings). The growing Chinese middle class is bein encouraged by the government to start spending more and save less which could explode the largest consumption phase in human history. China is not hampered by environmental policies the EU and America try to push, and they will not pass such measuers until they are a world leadign economy. All of this attracts the young and eager to earn. The risk takers, the dynamic job experience seekers, and the adventures are heading here, this has been happening for over 10 years now. As these people who are on the leading edges succeed and prosper more will follow. We are at a tipping point in world economic power, just as the USA was 80 years ago. The policies, regulations, and business environment of America back then helped shift the world economy from Europe to America, now it is happening again. Sure, we have had problems before, the 1970’s 80’s and 90’s. But the difference between then and now is this, people stayed put then and today they are leaving and taking their determination to succeed and strive with them. The tide is turning and we all need to face it.