And that's cool for mining, or oil, or any other business with high variable and low capital costs. Because then you can loot while the looting is good, and then scoot once the shit hits the fan

In the case of China, the almost free abundant resource is not Oil or Coal, it is labour, and once you have millions of people unemployed in a zero social welfare environment, you can throw almost any shit at them and they will still do almost anything to get a job or cash - like selling their own organs.

As you get closer to peak (available) labour, labour become a much more valuable and powerful resource and can achieve a better share out of the fruits of economic productivity.

Thus capital needs unemployment to stay high to maximise its bargaining position - cf US republicans desperate attempts to prevent economic recovery under Obama.

Index of Frank's Diaries