The First Casualty of China's Massive Unemployment Problem

October 28, 1988- Millions Across China Said to Face Starvation - About 20 million people are facing starvation in China because of droughts and floods across the country this year, China Daily reported today. ...........................................................................................................................................................

July 7, 2004 - China's Rising Unemployment Challenge - China's employment problem is more serious than these numbers suggest. Notwithstanding the reported increase in total employment of 31 million between 1998 and 2002, registered urban unemployment increased to 4% from 3% -- to 10 million from 6.7 million -- while urban employment was growing to 248 million from 224 million. Thus, the number of new urban jobs was 10 million less than the number of workers seeking them. These numbers are only the tip of the unemployment iceberg. Research by RAND indicates that when proper allowance is made for "disguised" rural unemployment as well as "unregistered" urban unemployment, China's actual unemployment rate soars to an estimated 23% of the total labor force. (The term "disguised" unemployment refers to [unproductive] labor that is reported as nominally employed, but in fact does not add to output ... ) [emphasis added]

Fast forward to now ...

February 15, 2008 - Is the party over in China? Massive unemployment looms - China watchers are predicting a drop in the GNP growth rate this year and for the foreseeable future. ... The downturn is going to be welcomed in some Chinese leadership quarters because of the fear of runaway inflation from an overheated economy — now fed by food shortages and the impact of the worst winter in 50 years.What China needs to do is use the downturn in growth to shift emphasis from heavy industry and exports to domestic consumption. [emphasis added]

Chinese military submarines are neither domestic consumption nor export items, nor does the purchase or production of such submarines add to China's productivity.

Building commercial submarines, however, is a productive proposition for some other nations' economies. Modernized agricultural production remains a primary goal for China's leadership. Wonder why.