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One of the easiest things the Chinese government can do to raise the living standards of its citizens is to let the yuan float freely - By placing a price ceili
by meric 15y ago
One of the easiest things the Chinese government can do to raise the living standards of its citizens is to let the yuan float freely - By placing a price ceiling on the yuan against the US dollar it means imports are more expensive and its citizens can buy less.
Consider, if the yuan rose in price by 100% it would mean the price of the iPhone will be halved and more of the workers who toiled the long hours will be able to afford one - or they can cut down on overtime instead.
Right now with the inflation rate is much higher than the interest rate in China, meaning the government is actually penalising people for saving too much.
They are saving that much because they know one day, their money will be worth more.
I agree with the OP the "ivory's assault on foxconn" is essentially pointless and potentially harmful. You are raising the living standards of one small group out of hundreds of thousands at a time. Good luck with that.
Oh and all workers belong to a government operated union.
- el_presidente 15y agoConsider, if the yuan rose in price by 100% it would mean the price of the iPhone will be halved and more of the workers who toiled the long hours will be able to afford one - or they can cut down on overtime instead. Wouldn't the price of the iPhone also go up by 100% since they are the ones who make it?
- meric 15y agoNo, because the value added by labourers to an iPhone is less than 100%. Much of the rest of the value added are from other countries. But you do provoke a point - Would Chinese workers be making the iPhone if the yuan rose by 100%? There's a good chance they might not be. Yet, if the rise of the yuan was not a result of intervention by governments, it would mean that the yuan rose because there is high demand for China's exports - As long as China's exports remain in high demand there will be further growth in its exports industry, making sure there will be enough work for China's workers.