The ripple effects of America’s economic distress continue to impact regions throughout the world. During the madness of the Bush administration which encouraged a binge of buying accompanied by huge tax cuts for the wealthy which resulted in ever higher budget deficits, Americans welcome the arrival of inexpensive goods from China while ignoring they were paying for the imports with money borrowed from China. The economic slowdown in America is causing many Chinese factories to close down or to reduce the work force. This has resulted in millions of rural Chinese farmers who migrated to urban areas in search of work being compelled to return to their rural homes. Eight million migrant workers from central China’s Henan province returned home before the spring festival, a figure that is one million higher than last year.
Most of these returning migrants do not wish to return to the life of a farmer since they prefer city living. Chinese officials report this province alone has 32 million surplus laborers and most of the returning migrants have come home due to economic conditions, not because they want to resume a rural existence. The Chinese government may have a demographic time bomb on its hand which could explode at any time. Unfortunately, for China, the American people will not quickly return to their former lives of living off credit cards.