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I don’t agree that Chinese labour is cheaper is because the government forces people work for low salaries. Sure there is a lot of intervention, but that’s a st

I don’t agree that Chinese labour is cheaper is because the government forces people work for low salaries. Sure there is a lot of intervention, but that’s a stretch. In any case, using your example, there are Indian, Vietnamese and Turkish workers that are willing to do the work Cisco needs at a cheaper price than Cisco is required to pay in America. If Cisco doesn’t recruit them, a competitor does and that competitor gains a material advantage over Cisco. Some companies and industries can absorb the inefficiency better than others, and it might not kill them immediately, but in the long run forcing your country’s businesses to operate uncompetitively is very bad.

bediger4000 8y ago
Allowing your country's companies to under-pay your population probably has worse effects, even in the short run. Corporations are here to make things better for the populace, not to use the populace as resources to be raided before the corporation moves along to better things. That almost always seems to be left out of the analysis. Without any benefits from a corporation,we're all better off without them, except maybe a few big stockholders and C-level employees. If corporations don't help, they're not even Pareto-efficient.