The 2011 Xiamen Inter-National Stone Fair was once again a resounding success, that according to fair organizers.
The attendance eclipsed once again the previous year with 120,500 attendees, 105,000 square meters of exhibit floor space (1,130,210 sq. ft.). Attendees came from 140 different countries, while exhibitors hailed from 50 different countries. Since 2004, statistics in every category have increased every year. And once again, for next year's fair, organizers are planning for yet another increase in both exhibit space (115,000 m2 ) with 1,500 exhibitors planning to attend the 2012 Xiamen Stone Fair. It remains clear that China continues to be a major force in the international stone industry. For those of us in various aspects of the stone industry, it behooves us to understand what is happening in China in our particular industry segment, and take appropriate actions to capitalize on this worldwide industry transformation...or risk being left behind.
Lately there seems to be much discussion in the media about the "Income Gap" in America. Numerous media outlets decry how the rich are getting richer, at the expense of the poor. Recent Census data indicates that, yes, the recession is taking it's toll. Real median household income dropped 2.9% from $51,726 to $50,221 from 2008 to 2009 and the poverty rate has gone from 12.5% to 14.3% (American Community Survey). While the share of total income that went to the wealthiest 10% of households rose from 34.6% in 1980 to 48.2% in 2008.
According to Chris Farrell in BloombergBusinessweek, "The rise in income inequality is well-documented. Median income began stagnating in the early 1970s, and income inequality started to surge in the early 1980s. The benefits of America's economic growth since then have mostly gone to a wealthy minority, while the majority of workers have seen their earnings stagnate at best and decline at worst."
This is a familiar mantra of many media outlets. While much of it may be mostly true, the fact that economics is a soft science should cause all of us to pause and consider that all economic data can be interpreted in any way, shape, or form the particular economist chooses. For every Keynesian argument, there are plenty Supply Siders that can take the same data and come to a completely different conclusion. For a more detailed analysis of this argument, look up www.unpleasantfacts.com and reference the "Revisiting the median income chart" article. It reveals a different view of the issue.
Of course, the role that Globalism plays in this issue is often overlooked, misrepresented, or misunderstood. And this leads me to China. In the past three years that I have been traveling to China, I have witnessed a profound economic metamorphosis in front of my eyes. Each year I see economic growth that is astounding in comparison to other countries and indeed in the context of world history.
Traveling the streets of Fujian Provence in southeastern China, I see startling income disparity. In a matter of a ten minute drive I can cruse past a Bentley dealership (Continental GT Coupe $182,800) and then see a peasant farmer pushing a garden cart who is happy to earn $120 USD per month. The official minimum wage in many of China's provinces is 960 RMB, about $146 US Dollars, while Bentley sales in China have eclipsed both Japan and Germany. Bentley expects to sell 1,000 units annually by 2014.
In 2010, China had the fastest-growing population of millionaires in the world with a 31 percent rise from 2008 to 477,000 according to the Shanghai Daily newspaper. The "Income Gap" in China is vastly more significant than in the United States. But you won't hear that from American media outlets.
But of course,Americans are not used to going backwards financially. Any yet many of us are. The reasons are vast and numerous. While our elected officials argue and debate our Federal Budget over a mere pittance of money ($38 Billion Vs. $3.83 Trillion Budget) thousands of American companies are still struggling and closing their doors. America is in a severe crisis, yet officials are seemingly not taking the matter seriously enough.
The only way that America can compete in the future on this Global plane is to be More Competitive and More Innovative. This is how we have risen to World Super Power status, and the only way we will remain! But we will not until Americans fully understand what it will take to remain in control of our financial and economic futures.
Are we willing to make the sacrifices necessary in our city, state, and federal budgets to be able to compete in this world economy? So far the answer is no. Those who have grown accustomed to all sorts of entitlements, will not stop feeding at the taxpayers' trough. Wake up America. Smell the coffee, or perhaps I should say smell the Green Tea. Read the China Daily newspaper online and see for yourself what is going on over there. Read it for two weeks. You will never look at the world the same again.
Torin Dixon is owner and director of Montana Stone Gallery, an importer and distributor of stone slabs in Missoula, Montana. Contact him at tdixon@montanastonegallery.com
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