4 ms·

To all the doubters, real manufacturing wages in China have actually been soaring over the past decades, this is corroborated across non-correlated sources: PR

by jvm 12y ago

To all the doubters, real manufacturing wages in China have actually been soaring over the past decades, this is corroborated across non-correlated sources: PRC Government numbers: http://www.tradingeconomics.com/china/wages-in-manufacturing http://www.tradingeconomics.com/china/wages-in-manufacturing http://www.marketwatch.com/story/china-wages-jump-in-2012-despite-slowing-economy-2013-05-17 http://www.marketwatch.com/story/china-wages-jump-in-2012-de... WSJ: http://online.wsj.com/news/articles/SB10001424052748703849204576302972415758878 http://online.wsj.com/news/articles/SB1000142405274870384920... Journal of Economic Perspectives: http://leedsonfinance.com/2013/02/24/the-end-of-cheap-chinese-labor/ http://leedsonfinance.com/2013/02/24/the-end-of-cheap-chines... No one source is believable but there appears to be wide consensus here. Also note these are real, inflation-corrected wages. You can tell especially by the WSJ's concern over prices, if inflation explained the changes it wouldn't impact export costs which are priced in USD not Yuan.

PythonicAlpha 12y ago
Did they also compare/correct not only with "inflation rates" but with raw material (e.g. foods) prices? To my knowledge, food prices have risen in many countries more than official inflation rates.
- seanflyon 12y ago
  Inflation is measured by the cost a a standard basket of goods that includes food items. Well informed people disagree over whether or not that basket is representative or not, but inflation is a least supposed to be a measure of exactly what you are talking about.
  - PythonicAlpha 12y ago
    The key is "supposed". Inflation rates are always political.
jokoon 12y ago
well china has a huge growth, but after the 2008 crisis I can still raise my eyebrows. why would americans really care inequality in china ? if american politics want to reduce inequality, they want to do it in their country, not in developing countries.
- seanflyon 12y ago
  Some people care about people in general, even if they are far away.
  - digikata 12y ago
    If you live in America and are struggling to make enough to feed and house your family, it's a moot point that the numerical income level puts them in the 1% around the world.(or whatever the percentage is) Local inequality matters.
    - seanflyon 12y ago
      Local purchasing power is quite different from local inequality
- nextweek2 12y ago
  Everybody should care, it has a direct impact on you. If workers in China and India are earning more money and there is less of a gap between what an American gets paid, it makes less sense to outsource. I could hire workers locally for similar wages and not have a 12 week lead time on manufactured goods.
  - jokoon 12y ago
    and how do you want american politics to do something about china ?

by jvm 12y ago

PythonicAlpha 12y ago

Did they also compare/correct not only with "inflation rates" but with raw material (e.g. foods) prices? To my knowledge, food prices have risen in many countries more than official inflation rates.

seanflyon 12y ago
Inflation is measured by the cost a a standard basket of goods that includes food items. Well informed people disagree over whether or not that basket is representative or not, but inflation is a least supposed to be a measure of exactly what you are talking about.
- PythonicAlpha 12y ago
  The key is "supposed". Inflation rates are always political.

jokoon 12y ago

well china has a huge growth, but after the 2008 crisis I can still raise my eyebrows. why would americans really care inequality in china ? if american politics want to reduce inequality, they want to do it in their country, not in developing countries.

seanflyon 12y ago
Some people care about people in general, even if they are far away.
- digikata 12y ago
  If you live in America and are struggling to make enough to feed and house your family, it's a moot point that the numerical income level puts them in the 1% around the world.(or whatever the percentage is) Local inequality matters.
  - seanflyon 12y ago
    Local purchasing power is quite different from local inequality
nextweek2 12y ago
Everybody should care, it has a direct impact on you. If workers in China and India are earning more money and there is less of a gap between what an American gets paid, it makes less sense to outsource. I could hire workers locally for similar wages and not have a 12 week lead time on manufactured goods.
- jokoon 12y ago
  and how do you want american politics to do something about china ?