Slashdot Mirror
The End of Cheap Labor In China
hackingbear writes "In the past decade, real wages for manufacturing workers in China have grown nearly 12% per year. The hourly cost advantage, while still significant [comparing to the West], is shrinking rapidly. The changing economics of Made in China will benefit both the rich and poor world. Countries like Cambodia, Laos, India and Vietnam are picking up some of the cheapest labor manufacturing left by the Chinese. And there is already evidence of at least the beginning of a shift in manufacturing operations returning to the US. Perhaps we will soon stop picking at 'Made in China' but instead complaining 'Made in Vietnam/Cambodia,' while serving the flood of Chinese tourists stocking up on brand-name merchandises on US tours and Chinese students paying high tuitions to our cash-strapped universities."
Prior to the opening of the Federal Reserve, the US fluctuated between 2 and 5%. Today, it's greater than 40%. That is as bad as many African nations.
FYI, that's a false statement, most African nations spend much less than 40% of their GDP on providing civilization to their citizens: Burkina Faso (21.6%), Cameroon (18.5%), Côte d'Ivoire (19.7%) - you name it.
The countries you wanted to compare the US with is Germany (43.7%), Finland (49.5%) or Sweden (52.5%).
What does that spending buy their citizens: universal health-care for all citizens, as a birthright. High quality public education that almost all eduction happens in public schools and universities. Well-developed public transportation systems shipping children to school which transportation system I'm sure you'd enjoy as a tourist as well. Pervasive unemployment insurance and various protections for job-takers and their families: no hire-and-fire. Compare German unemployment during the crisis with US unemployment and guess which one spends more of its GDP on common good services for its citizens?
And you want the US to move to the same level of civilization as Burkina Faso or Côte d'Ivoire? Corporate donors will love it but good luck selling that to your fellow citizens ...