IMF sees 140m jobs shortage in ageing China as 'Lewis Point' hits - Telegraph
China will run out of cheap labour in around seven years and will have a shortage of labour of 140 million people. This is an incredible labour collapse. One solution suggested at Davos by a Chinese demographer was to
"Shoving" sounds more like murder than suicide.resort to mass suicide in the end, shoving pensioners onto the ice
Here's a link to the IMF report (downloadable pdf) upon which the Telegraph report is based:
Some US manufacturers, including Apple (some parts), Ford, Caterpillar and General Electric are already starting to bring their factories back home. I think this is a good move even though we consumers may end up paying higher prices. In the meantime China is trying to steal as many trade secrets as it can. It does not yet realise that theft brings bad karma.
The Telegraph article concludes:
There may be an opportunity here for Ireland. A much smaller economy and population could pick up bits...My guess is that there is one last cycle of Chinese fever to enjoy -- if that is right word -- before the aging crunch and the credit hangover combine with toxic effect. One thing is for sure: a middle-income country with a shrinking work force is not about to displace the United States as global hegemon.
What do you think are the implications for Ireland and the world economy?