Matching the consumption model of the United States is not the equivalent of the American dream. There was a time in America when its people were at a lower economic status, and the pursuit of quick wealth with disregard for long-term planning has caused many issues for the country’s current state of affairs. At one point America was the industrial center of the world, but as new jobs and markets like banking, finance, and human thought capital proved to be more profitable revenue sources, industry in America disappeared. The infrastructure that was in use has fallen into disrepair and has led to environmental decay in heavy industrial areas.
As China’s economy is growing, wages are rising to offset the inflation to costs of living and because the lower classes require more money for their consumption habits. In 2006, wage rates rose 40%, an increase that has drastically reduced the margins for some of China’s largest manufacturing companies. (http://www.businessweek.com/magazine/content/06_13/b3977049.htm) The cheap labor source common in the 1990’s has matured, and the requirements for skilled workers are more defined now. Rising classes are quickly becoming a large economic and environmental issue for China.
America has passed this phase in growth and the effects can be seen in major cities around the country. Detroit was forced to cut back operations because of wage demands by employees in unions, while creating an inferior product to other world markets. These same conditions are a possibility in the Chinese market, and can be prevented by innovation and investing in the longevity of the industry through sustainable business practices. An American company based in China is building their manufacturing plants to require less electricity in production. These practices have lowered operational costs enough to cover the increases in wage rates. This is a method of sustainable growth that enhances the bottom lines of both the company and its employees.
Fact: People inherently want to increase their wealth and possessions. While this mindset will not change over time, there are ways to accomplish this without stealing from your country’s future bounty. America has grown to become a world power with the help of its natural capital. China has the ability to leverage its assets and create wealth in a way that does not disrupt the environment. Investments in pollution free energy and manufacturing infrastructure will help offset a growing population with increasing consumption patterns.
