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> On May 23, 2024, at 8:31 AM, Marv Gandall via groups.io 
> <[email protected]> wrote:
> 
> https://www.bnnbloomberg.ca/us-europe-gripes-on-china-overcapacity-aren-t-all-backed-by-data-1.2054401

I have a couple of problems with the article.

1. Prices: "From the rest of the world’s perspective, overcapacity can be felt 
through lower prices."  The title of the article is "Gripes on China 
Overcapacity Aren’t All Backed by Data," but in looking at the first set of 
data, the author shifts to world-wide demand and argues that prices are going 
up so there can't be over-capacity. That's a straw man. The Chinese 
overcapacity that Yellen and others are concerned with is whether China has 
enough capacity to flood the US market with cheap vehicles. The Chinese 
manufacturers will then be able to raise their car prices in the US market, no 
doubt owing to their much lower costs, even with hauling the vehicles overseas 
and adding more oil content to the coal content that goes into making each one. 
This will encourage more cheap vehicles made by workers with fewer rights to 
control the conditions of their labor or to have a voice in the workplace, and 
it will be made in communities that have no control over the environmental 
consequences of cheap-vehicle production.  

2. Utilization: Utilization is lower than what is considered normal "according 
to a commentary by the Communist Party’s leading financial body."  
"Overcapacity" is now a political issue and commentary from a political body 
should NOT be considered reliable.

Except for a couple of cited sources, I don't know where all the information is 
coming from, the independence of the sources, or if the Bloomberg name should 
be trusted on this matter given that they may not want to expose outstanding 
sources.  But the conditions of the market shouldn't guide our strategy here.

When workers win the right to independent trade unions and the nation's masses 
democratically decide to impose ecological restrictions on resource use, the 
neoliberal world order allows capital to evade these added costs by shipping 
the domestic jobs to places where workers live in dormitories or crates rather 
than ranch houses and where government imposes few ecological safeguards.  But 
the capitalists then need for their companies to sell those products back on 
the domestic market in order to realize higher surplus than if produced 
domestically.  

So, how do we struggle against that except for controlling access to the 
domestic market?  Why wouldn't US workers demand the same level of workers 
rights as our own and the same level of environmental safeguards we imposed on 
those businesses when they make goods in the US?

Mark



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