In the early 90s, the wages of European and American workers were forty or fifty times that of Chinese workers, and the wages and benefits of Chinese workers were extremely low, crazy overtime, and there were no five insurances and one housing fund at all, so the cost of the product was very low and the profit was high.
At the same time, China's industrial science and technology are underdeveloped, there is a shortage of commodities, products are not worried about selling at all, the cost of products is low, there is market demand for products, the profits of capitalists are very high, and the economy is growing rapidly.
However, the capitalist economic development model has quickly caused the polarization of the rich and the poor, and the common people will soon be unable to consume the products produced by Chinese enterprises, so they can only rely on external demand, and in 1997, the Asian economic crisis broke out, and the problem of overcapacity came out, so the large-scale development of the western region was launched, and the problem of overcapacity was solved with internal investment.
In 2001, China joined the world's leading organization, and China's goods were exported to Europe and the United States, and the strong demand in Europe and the United States solved the problem of overcapacity, driving enterprises to expand production capacity and rapid economic development.
However, in 2008, the financial crisis broke out in the United States, the financial crisis hit the United States and Europe, and the consumer demand in Europe and the United States declined, so the problem of overcapacity appeared again, in order to solve the problem of overcapacity, a large amount of money was invested in infrastructure and real estate, with domestic demand, to make up for international demand, and to drive the development of steel, cement, chemical and electrical industries.
However, the rich and the poor are polarized, and the people have no money, how can they consume real estate, so they borrow money to build infrastructure, and the people take out loans to buy houses to solve overcapacity. As a result, urban investment companies have been saddled with tens of trillions of debts, and the people have been saddled with housing loans and interest for decades, overdraft to solve the problem of overcapacity in the next few decades, and their consumption capacity has been greatly weakened.
The consumption power of the domestic people is declining, the United States is constantly declining, the consumption capacity is declining, Europe because of the Russian-Ukrainian war, inflation is serious, consumption capacity is declining, and now China is declining external demand, domestic demand is declining, but China's industrial science and technology are becoming more and more developed, and the production capacity is becoming more and more powerful, so the problem of overcapacity is even greater.
In order to sell the products, enterprises are fighting each other's wars, rolling each other, profits are getting lower and lower, a large number of enterprises are bankrupt and bankrupt in the war, and the number of unemployed people is increasing.
At the same time, the application of robots, unmanned production lines, and artificial intelligence, enterprises need fewer and fewer people, more and more unemployed people, and consumers continue to decrease, so that the problem of overcapacity is becoming more and more serious, more and more enterprises are bankrupt and closed, and more and more unemployed people are unemployed.
Today's economic problems in China have been buried from the very beginning, and this capitalist economic development model of severe exploitation of workers and polarization between the rich and the poor has come to an end.
At the same time, with the development of China's industrial science and technology, China's industries gradually overlapped with Europe and the United States, becoming competitors, and more importantly, in the face of China's severe exploitation of workers' economic development mode, Europe and the United States can no longer bear it.
The wages and benefits of European and American workers are several times that of Chinese workers, resulting in the manufacture of the same products and the provision of the same services, the best in Europe and the United States are two or three times that of China, and they cannot compete with China at all, and the economic contradictions between Europe and the United States and China are getting bigger and bigger, Trump will fight a war with China when he comes to power, and Europe will increase tariffs on Chinese electric vehicles.
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