Vin Crosbie's Personal Blog

For his business blog, visit http://www.digitaldeliverance.com

The ‘Threat’ of Chinese Auto Manufacturers

The last hútòng (胡同) I explored was in the year 2000, in the southern suburbs of Beijing. Many of its residents still wore drab green or grey uniform ‘Mao’ suits. A hútòng is a neighborhood of streets and narrow alleys separating blocks of one- or two-story traditional Chinese multi-family houses containing common courtyards. You’ll rarely find a hútòng in any populous city in China. During the past quarter century — yes, it’s been that long, most hútòngs have been razed and replaced by towering modern apartment blocks. Hundreds of thousands of hútòngs gone. During that time, China’s economy has advanced 600%; 850 million of China’s  1.4 billion people were lifted above the poverty line,  and by 2030 (only four years) it is predicted by Western analysts that 27% of Chinese adults with have college educations — that same percentage as Germans. Meanwhile, the U.S. economy has grown 310% since 2000, the number Americans living under the poverty line has increase from 12.2% to 15.9%, and literacy has dropped to 79% to 80% — meaning that one out of every five Americans struggles to read, 21% are functionally illiterate, and half of the population reads at no better than a sixth-grade level (an 11 to 12-year old level). These declines have demonstratively shifted American politics. In the nearly four decades 1988, only two Republicans have won the White House: George W. Bush and Donald Trump. Thoughtful, probative, and politically experienced Republican nominees as Robert Dole, John McCain, and Mitt Romney lost elections. Starting in 2008 to compensate, the Republican party largely stopped campaigning about policies that compete with those of Democrat candidates and began competing about what it calls ‘cultural’ ‘ issues: the Starbucks coffee chain no longer printing ‘Merry Christmas’ on its cups, Barack Obama wearing a brown suit, there being ‘transgendered’ athletes (perhaps hundreds of them within a nation of more than 300 million people!) competing in scholastic athletic games, about immigrants allegedly eating natives’ pets, wind turbines allegedly causing cancer, scientifically-proven human-caused climate change being a ‘hoax’, alleged Jewish ‘space lasers’ causing forest fires, about the 66% of Americans who are Christians allegedly being discriminated against by the majority of Americans, and other dingbat conspiracy theories and what I call ‘conservative twinkie’ issues that rile the gullible and illiterate among Americans into voting for whomever deceitfully utters such lies. Hence, a minority of American voters (i.e., slightly under […]

Mass Replacement of Workers by Robots Will Cause Massive Chinese Unrest

Here’s an technology story that portends civil unrest in China during the this and the next decade: SHENZHEN, July 29 (Xinhua) — Taiwanese technology giant Foxconn will replace some of its workers with 1 million robots in three years to cut rising labor expenses and improve efficiency, said Terry Gou, founder and chairman of the company, late Friday. The robots will be used to do simple and routine work such as spraying, welding and assembling which are now mainly conducted by workers, said Gou at a workers’ dance party Friday night. The company currently has 10,000 robots and the number will be increased to 300,000 next year and 1 million in three years, according to Gou. Foxconn, the world’s largest maker of computer components which assembles products for Apple, Sony and Nokia, is in the spotlight after a string of suicides of workers at its massive Chinese plants, which some blamed on tough working conditions. The company currently employs 1.2 million people, with about 1 million of them based on the Chinese mainland. For more than 60 years, the Chinese Communist Party has been carefully (some say dictatorially) trying to grow the Chinese economy without creating civil unrest resulting from first industrialization and lately a conversion to a capitalistic economy. How to keep the country fed when farmers are tempted to quit the plows for higher paying factory work? How to keep the factory workers happy without slowing down production or causing economic inflation? Etc. The bloody Tiananmen Square protests of 1989 showed just how close to boiling over social unrest is in the People’s Republic of China. If Foxconn, whose workforce is already anxious (some suicidally so), plans to replace a large number of workers with millions of robots, how soon before other Chinese factories similarly replace their own workers. What will such conversions means to the hundreds of millions of factory workers in China. Unemployment. Perhaps there employee retraining programs will be offered, but for hundreds of millions of workers? And to do what? During the early 1800s in Britain, textile workers who were replaced by machines protested and rioted. They were called Luddites, after a figure from English myth. I wonder what will we call the Chinese software factory workers who will be replaced by robots and who will surely protest and riot?