China Is Set to Lose Manufacturing Crown (enemy, generation, Obama)
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In about 20-30 years, eventually the labor cost in China will be much closer to that of the United states. China will try its best to make their currency work for their economic and national goals. They will have areas that remain desirable to manufacturing.
Another factor is that goods are best produced where they are consumed. China will have the worlds largest middle class, and that alone will make it in the best interest of companies to not only manufacture but also design in China. So as manufacturing may relatively decline, design, engineering, innovation will go up in China. They are now the largest auto market, the largest luxury goods market and the largest education market.
They have rede fly gotten rid of the one child policy. The chinese aren't the Japanese. The chinese are having more children. The government doesn't really need to encourage it like what Japan does. The population numbers will be quite optimistic. Simply put, without enough young people, there would not be enough tax payers and economic output. If there is a military conflict, the country without enough young people would be in trouble. At some point, military conflicts will come back and they will need the young to defend themselves.
Remember what Apple said when announcing the construction of an US computer plant a year or so ago: They project that the labor rates between the US and China will become competitive in about 3 years. The reason that no one factors in is that it seems that Chinese labor has a defect rate in manufacturing that is 3-5x that of US labor.
The Chinese are poised to take the place of the dollar as the benchmark currency. Then they can play the financial games with the rest of the world that the US has since it took over as the Benchmark currency from the British Sterling. If you want some interesting reading, read what happened to the British economy when they no longer had the benchmark currency.
In about 20-30 years, eventually the labor cost in China will be much closer to that of the United states. China will try its best to make their currency work for their economic and national goals. They will have areas that remain desirable to manufacturing.
Keep in mind that Obama is pushing the Pacific Rim trade agreement as well. Why are democrats, who purportedly support the middle class, so intent on killing it?
Manufacturing is not just making socks and toilets. How many companies in the world can really manufacture iPhones, for example? You think Africans can do that?
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Quote:
Originally Posted by hawkeye2009
Blame Bill Clinton.
Keep in mind that Obama is pushing the Pacific Rim trade agreement as well. Why are democrats, who purportedly support the middle class, so intent on killing it?
Watch what they do, not what they say.
Quote:
Originally Posted by Michigantown
I think you mean blame Ronald Reagan.
This has been going on since long before Clinton or Reagan. In the '60s, RCA manufactured vacuum tube components in NJ, shipped them to Brazil for assembly, then shipped them back to the US due to Brazil's cheaper labor lowering their overall cost.
Yep, we can thank Clinton for NAFTA and the slow demise of the middle class, and for repealing GLASS STEAGALL which threw salt on the wound and created the largest theft of wealth from the middle class in history.
Funny, isn't it?
Now the focus of the left is on inequities in wealth (which they created through NAFTA, China trade policies, and repeal of Glass Stegall). To make matters worse, the current dems are importing uneducated, cheap labor from Mexico and replacing our tech workers in Silicon Valley with foreign workers. The result- reducing the middle class and reducing incomes.
Want to kill the middle class and make the US a serf state? Vote democrat.
As nationless pirate corporations, loyal to no country, move on to find even cheaper wage slaves in even poorer countries with even less restrictions, China is growing a consumer class-which means these corporations don't need Americans and all our baggage anymore to buy things. It will only get worse as the cycle continues and other countries grow from wage slaves to consumer class.
The US is old news as far as these pirate corporations are concerned and yet useful idiots still praise their every move.
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