5 ms·

Maybe China is the one that will find their labor compensation unsustainable?

constantcrying 1y ago
In a world with a globalized economy it is a total abnormality that workers who are globally average are getting compensated far above the global average salary. Workers who have such demands can only exist because of very specific historical circumstances. Chinese workers are much closer to earning what you would expect the globally average worker to earn.
- dcrazy 1y ago
  This sounds like an economically naïve take that ignores those realities of local labor markets, relative purchasing power, and all the other reasons that underpin the theory of specialization in the first place.
  - constantcrying 1y ago
    Then give your theory why American workers deserve many times the wages of a Chinese worker, performing identical tasks to the same standards. >local labor markets, relative purchasing power Reverse causality. >and all the other reasons that underpin the theory of specialization in the first place. If you are specializing in something and someone else does everything you do better than you than the theory of specialization tells you that ...
    - pjerem 1y ago
      I mean, you don’t "deserve" your wage you are just paid what someone is ok to pay you and that’s a factor of a lot of externalities.
    - ToucanLoucan 1y ago
      > Then give your theory why American workers deserve many times the wages of a Chinese worker, performing identical tasks to the same standards. Because it costs many times as much to live in America as it does China. > If you are specializing in something and someone else does everything you do better than you than the theory of specialization tells you that ... Okay and my understanding was the idea behind this whole "society" thing was that we worked together for mutual benefit of one another. If whole segments of the society get left to starve and die because a different group of workers elsewhere can do their work cheaper than they can, that strikes me as... well, horrible, and also short-sighted and stupid.
- silverquiet 1y ago
  I wonder how US CEO compensation compares to global average CEO compensation.
a_wild_dandan 1y ago
You're right! China is presently terrified of involution. They're dealing with wage deflation and immense debt right now. Beijing is telling its companies to scale back subsidies and stop price wars. The flood of cheap batteries, solar panels, etc is about to change.

In a world with a globalized economy it is a total abnormality that workers who are globally average are getting compensated far above the global average salary. Workers who have such demands can only exist because of very specific historical circumstances. Chinese workers are much closer to earning what you would expect the globally average worker to earn.

dcrazy 1y ago
This sounds like an economically naïve take that ignores those realities of local labor markets, relative purchasing power, and all the other reasons that underpin the theory of specialization in the first place.
- constantcrying 1y ago
  Then give your theory why American workers deserve many times the wages of a Chinese worker, performing identical tasks to the same standards. >local labor markets, relative purchasing power Reverse causality. >and all the other reasons that underpin the theory of specialization in the first place. If you are specializing in something and someone else does everything you do better than you than the theory of specialization tells you that ...
  - pjerem 1y ago
    I mean, you don’t "deserve" your wage you are just paid what someone is ok to pay you and that’s a factor of a lot of externalities.
  - ToucanLoucan 1y ago
    > Then give your theory why American workers deserve many times the wages of a Chinese worker, performing identical tasks to the same standards. Because it costs many times as much to live in America as it does China. > If you are specializing in something and someone else does everything you do better than you than the theory of specialization tells you that ... Okay and my understanding was the idea behind this whole "society" thing was that we worked together for mutual benefit of one another. If whole segments of the society get left to starve and die because a different group of workers elsewhere can do their work cheaper than they can, that strikes me as... well, horrible, and also short-sighted and stupid.
silverquiet 1y ago
I wonder how US CEO compensation compares to global average CEO compensation.

a_wild_dandan 1y ago

You're right! China is presently terrified of involution. They're dealing with wage deflation and immense debt right now. Beijing is telling its companies to scale back subsidies and stop price wars. The flood of cheap batteries, solar panels, etc is about to change.