Abstract
The ongoing crisis of the US economy is the result of the US government's neoliberal policies since the 1980s. The market liberalization and global economic integration advocated by neoliberalism hollows out industry, generates asset bubbles instead, and results in structural unemployment and the transfer of labor to sectors of the virtual economy. The severe financial crisis triggered by the collapse of the latest and greatest of the asset bubbles, the housing bubble, has led the unemployment rate of the United States to rise sharply. In contrast, Chinese economic policies have resulted in tremendous economic achievements. As such they pose a big challenge to the neoliberal policy paradigm of the United States. The US government's numerous false accusations against the Chinese government are little more than futile attempts to deny this.
Highlights
Since the global financial and economic crisis caused by the US subprime crisis in 2008, the US economy has been depressed and the unemployment rate has risen to over 8 percent for 43 successive months
In the United States, known as the biggest financial empire, the virtual economy experienced rapid development in a crazy manner: the output of the virtual economy and service industries increased from 11 percent of total output in 1950 to 88 percent today; profits made in the finance, real estate and service sectors account for 70 percent of total profits in the national economy; the aggregate of financial derivatives increased from 72 trillion USD in 1998 to 672 trillion USD in 2008, up nine-fold in a decade, while the country’s GDP failed to even double
The neoliberal model inevitably leads to industrial capital flowing quickly from low-end manufacturing to high-end manufacturing, from home to abroad, and from the real economy to the virtual economy
Summary
Since the global financial and economic crisis caused by the US subprime crisis in 2008, the US economy has been depressed and the unemployment rate has risen to over 8 percent for 43 successive months. They condemn Chinese government policies, accusing it of trade protectionism so that they can claim to implement “retaliatory” trade protectionism This is the background for the mounting Sino-US trade tensions amid which the United States has carried out a series of the “anti-dumping” and “anti-subsidy” investigations into Chinese products, such as TV sets, vehicle tires, seamless steel tube and photovoltaic products, which are exported to the United States from China. In the US presidential election of 2012, both Obama and Romney competed in blaming China for US economic woes: for engaging in unfair trade practices including the low yuan and taking jobs from Americans. They attempted to divert the Americans’ attention and transfer the responsibility of a crisis of the US’s own making by attacking China.
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