Economic review

China should not be blamed for unemployment in America, Europe: expert

2018-06-19 01:49:03 (Beijing Time)         English.news.cn

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BRUSSELS, June 18 (Xinhua) -- China should not be blamed for the unemployment in America and Europe,a geo-political expert wrote in an article published on Eurasia Future on Monday.

"China's success is not the root cause of the failure of certain western economies to keep up with innovation, win-win employment models, education and long term planning," Adam Garrie, director of an independent news platform Eurasia Future, wrote in the Monday's headline article of the website.

Garrie listed several internal factors which led to the west's unemployment, and concluded that the U.S. and Europe should find resolution at home other than looking to foreign power or blaming China and the other countries.

He firstly focused on industrial workers unemployment in the U.S. and underlined the main factor leading to which is "lack of investment in the industrial sector".

"One must constantly re-invest in the industrial sector even when current production techniques and business models are still successful and profitable," he wrote.

"If the U.S. did with General Motors and the electronics industry what it does with Boeing, Lockheed and Raytheon, the U.S. and China would be on-par when it comes to industrial production," he added.

He said "all the U.S. needs to do is adapt the techniques that have been successful in defence industry and put them to use in the civilian industrial sector."

Secondly, Garrie noted "confrontational trade union/labour union model" has become a burden on U.S. and European industry, though labor union was "once highly important and highly effective".

In western models, unions are "constantly holding back progress" and often create nothing more than "prolonged strikes or extortionate union dues required by workers" whose jobs are getting less and less safe in spite of unionization.

The west needs to end the "hostile atmosphere" of management vs. workforce so as to revive its failed model.

Thirdly, the director pointed out that in western models there is "no sustainable preparation for robotics and artificial intelligence(AI)" .

Because the profits generated by AI in countries like the U.S. can be "easily off-shored in foreign banks or hedge funds" rather than "be re-invested into the national economy and into people" as what has been done in the market socialist model.

"In the western model, those whose jobs are replaced by robots are left with virtually nothing."

In a system such as the current one in the U.S. and most of EU, AI will devastate working class individuals," Garrie said.

Garrie also mentioned insufficient education systems and work ethic that does not encourage pride in work as other two reasons for unemployment problem existing in the western society.

"The next time a politician or celebrity tries to scapegoat China for the west's own inability to come to terms with its internal decline, instead of listening to such regressive rhetoric, tell them to look in the mirror and begin to work at problem solving close to home," he concluded in his article.