Johnny Ch Lok

Is Technology Influecing China Real Economy Growth Johnny Ch Lok

Finally, technical change ( invention) is not wholly ignored in classical economics, but it plays a secondary role. For example, the invention of machines which facilitate to labor, e.g. robotic, which is as one of consequences of the division of labor, it requires capital accumulation. Invention thus falls into place in an account of growth driven by saving and accumulation. Invention, such as robotic is the primary cause of growth, when saving and investment, though necessary. Are passively induced by the profit opportunities created by invention. So, it is an essentially quantitative conception of growth, driven by the growing quantity of accumulated capital. Any structural changes are the result, not the cause, of growth. Hence, capital accumulation, population growth and invention will have possible to cause any countries have real economic growth in nowadays new economic society. However, although China and India both countries, they have high population growth to supply enough labor to work in their labor market as well as they have high capital accumulation to assist many businesses develop to bring the consequence of the employers number increases and create many jobs. But, in long term, their workers' general wage can not increase more, even reduce. It is due to there are excess of labor supply to their labor market. So, in long term, these two countries have none labor shortage challenge. It means that low wage level will still continue to keep to these two countries in long term. SO, It implies that these countries have no real economic growth. I feel that they have real economic growth, unless these two countries' general wage level can increase or their workers can earn higher income to support their life. Hence, in classical theory of economic growth, it explains that capital accumulation and population growth are the main factors to develop the country can have real economic growth. The invention of machine, e.g. robotic this factor may be the main factor to explain whether the country has real economic growth. Such as China and India, many employers can not own high invention machines to assist their workers to raise productivities or improve efficiencies in factory or warehouse or any workplace environment. So, their productivities are general low level or inefficiency. Consequently, it will bring unproductive labor with luxury consumption. For example, many Chinese will need to buy cars to drive, but, China car manufacturers can not own robotics to assist workers to manufacture their cars in order to raise car productive number. So, it may explain why China car buyers can not feel enough cars supply to satisfy their car choices, because manufactures aim to avoid to produce enough cars number to avoid to excess car supply in China itself car market. When China car buyers number is increasing, but the cars supply number growth speed is slow, consequently, the car sellers can still keep the car price can not be influenced to reduce when their car supply number speed is slower than their car buyers growing number speed in China car market. So, it explains that why many China car manufacturers do not hope to buy robotics to assist car workers to raise car productive number in order to avoid the car supplies number is excessive to the car buyers number in China domestic car market. It implies that China is not one real economic growth country because China has many car manufacturers can not increase car sale number really, when they can not manufacture many cars to satisfy the Chinese car buyers' car choice need in China car market.