Quote:
Originally posted by jyl
We've benefited from years of falling goods prices as US manufacturers shifted production from high cost to to low cost regions. At some point this benefit should shrink as this shift becomes complete. Not a lot of shirts, shoes, PCs, TVs, etc made in the US any more. Meanwhile, wages are rising in China, production is shifting to even lower-cost regions like Vietnam, but I don't think that'll produce the same cost decline.
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China has such a huge labor market that I doubt wages will go up much there in the near future. You walk into a department store there, and there are twice as many saleswomen as there are customers. There is salary compression to maximize employment.
The best wages in China are paid by foreign companies. They are responsible primarily for the rising middle class in the big cities.