Quote:
Originally Posted by ContrarianEcon
And if you insist they get US minimum wage they will prosper.
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No, they will not prosper. There would be raging Wage Inflation necessitating the need for Wage & Price Controls. Nobody wins.
Worse than that, their global foot-print will expand dramatically, creating Demand-pull Inflation in the US. Some people still can't grasp the fact that 320 Million Americans consume 27% of all Aluminum in the World. When the 500 Million-strong Chinese Middle Class, and the 300 Million Indian Middle Class and the 300 Million sub-Saharan Middle Class start consuming like Americans, there's going to be economic problems.
Wages in developing-States generally double every 10 years. Once India starts development, minimum wage will increase from $0.28/hour to about $0.60/hour and then to $1.20/hour a couple of decades later.
There's a natural economic progression and it's best to let it take place naturally, instead of interfering and causing chaos.
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