Richard D. Wolff

Is China using a long term economic strategy with the goal of undermining and eventually destroying capitalism by taking the system to its absolute and logical extremes in terms of economies of scale and extreme low cost pricing and production? In the book “Rare: A high States Race to Satisfy our Need for the Scarcest Metals on Earth” author and PhD of Chemistry Keith Veronese had this to say; “The government of China made a decision to play the “long” game in 1970- sell large quantities of rare earth metals at very low prices, prices low enough that the rest of the world would flock to this new and inexpensive supplier. Years of allowing outsiders to purchase at below-market value devastated the rare earth mining industry in other parts of the world, and by the turn of the millennium China’s mines were the only ones left standing.” “China beat the United States because its mines and processors could sell at a lower cost due to economies of scale and a government willing to set low prices to gain market share. This drove suppliers in other parts of the world out of business through a decreasing profit margin, much the same way the arrival of a large chain store closes the door of “mom and pop” specialty shops. When profits drop due to a changing market place, decreased demand, increased upkeep costs, or a number of other factors, it is often cost effective to cease mining operations at a location. It is not the place of these private corporations to mine any metal with the hopes of maintaining a healthy domestic supply and the best interests of the country if the monetary reward is not present”. -pages 40-41. “Rare: A high States Race to Satisfy our Need for the Scarcest Metals on Earth” by Keith Veronese While this is a general analysis of the rare earths market and how China has effectively cornered it….it seems you could replace the word “rare earths” in these snippets from his book with basically any product from electronics to chairs. What is the future outcome of the world economy if taken to its logical conclusion?