This programme is cogent as a national strategy, but unfriendly to financial investors. The emphasis on investment means that supply will always run ahead of demand, leading to deflationary pressure, which is bad for corporate profits. Even the favoured high-tech sectors face intense competition that will erode margins.
In normal language: According to western economists, investing in manufacturing is bad because it decreases prices (as goods become easier and faster to manufacture) and increases competition (due to more goods being made), making price gouging harder.
This is a textbook case of the falling rate of profit due to capital investment.
This paragraph is hilarious:
In normal language: According to western economists, investing in manufacturing is bad because it decreases prices (as goods become easier and faster to manufacture) and increases competition (due to more goods being made), making price gouging harder.
This is a textbook case of the falling rate of profit due to capital investment.