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Keep in mind the median Chinese income is under $2700 (and average a little over $3000) [0]. That's a huge part of why its cheaper to build things there - labor

by ac29 8y ago

Keep in mind the median Chinese income is under $2700 (and average a little over $3000) [0]. That's a huge part of why its cheaper to build things there - labor is an order of magnitude less expensive than in the US. [0] https://www.stlouisfed.org/on-the-economy/2018/january/income-living-standards-china https://www.stlouisfed.org/on-the-economy/2018/january/incom...

melling 8y ago
I’m simply pointing out the world’s second largest economy is able to do things that the world’s largest economy can’t. I’m sure there are lots of reasons. I doubt the salaries are the only explanation. With these advantages it’s quite likely that their ability to build infrastructure will enable them to take the number one spot in the world
- Spooky23 8y ago
  It's one of the advantages of an all-powerful government. The project itself benefits from labor+scale. They are able to scale manufacturing by declaring the size and scope of the project. Similar to what the US did with road-construction... hundreds of contractors appeared to manage interstate projects as it was a well-known, decades long effort. The other factor is that the political environment in China allows for cheap, low friction seizure of land and homes. The US is capable of doing the same thing -- we did it for 50 years to build the interstate system. What is missing today is the will at the Federal level to invest billions. States lack the ability to borrow/print sufficient funds to build like this at scale.
- zjaffee 8y ago
  They're already the number one spot in the world, their net purchasing power is higher than the US. Their nominal GDP being lower than the US's is an economic choice made by their government to keep growth happening. This said, China will never be a rich country in the way the US is due to it's incredible size.
- freehunter 8y ago
  Turns out slavery, limitless debt, unfettered authoritarianism, and rampant abject poverty has its advantages when it comes to completing major infrastructure projects. Who knew.

by ac29 8y ago

melling 8y ago

I’m simply pointing out the world’s second largest economy is able to do things that the world’s largest economy can’t. I’m sure there are lots of reasons. I doubt the salaries are the only explanation. With these advantages it’s quite likely that their ability to build infrastructure will enable them to take the number one spot in the world

Spooky23 8y ago
It's one of the advantages of an all-powerful government. The project itself benefits from labor+scale. They are able to scale manufacturing by declaring the size and scope of the project. Similar to what the US did with road-construction... hundreds of contractors appeared to manage interstate projects as it was a well-known, decades long effort. The other factor is that the political environment in China allows for cheap, low friction seizure of land and homes. The US is capable of doing the same thing -- we did it for 50 years to build the interstate system. What is missing today is the will at the Federal level to invest billions. States lack the ability to borrow/print sufficient funds to build like this at scale.
zjaffee 8y ago
They're already the number one spot in the world, their net purchasing power is higher than the US. Their nominal GDP being lower than the US's is an economic choice made by their government to keep growth happening. This said, China will never be a rich country in the way the US is due to it's incredible size.
freehunter 8y ago
Turns out slavery, limitless debt, unfettered authoritarianism, and rampant abject poverty has its advantages when it comes to completing major infrastructure projects. Who knew.