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A few years back when Apple announced that they were building a new US factory, they cited that they could see a scenario wherein within 3 years(at that time) China labor would exceed US labor. A big aspect to that factor was China's defect rate on finished product was 3x that of the US, something that has not improved. The next day Apples stock tanked 10%.
One look at this chart tells you why: labor costs about five times more in China than it did two decades ago and now costs even more than it does in Mexico.
Minimum wage in India is $0.28/hour.
You will see a shift of manufacturing to India soon enough.
One look at this chart tells you why: labor costs about five times more in China than it did two decades ago and now costs even more than it does in Mexico.
Yowza! I've been noticing less and less stuff coming from China in 2015 but, Mexico now cheaper?!
To be fair: I'd MUCH rather see Mexico pick up the slack because that'll get a LOT of Mexican nationals living here in the US to go back home and, not just illegal aliens either.
Also, Mexico is a major purchaser of US goods. We may have a trade deficit with them but the volume of trade is so large that our exports to them are still significant. As Mexico develops they will buy more of our stuff. Because of geography they are a natural trade partner for all US producers while China isn't. A richer Mexico will always be good for the US, for many reasons.
One look at this chart tells you why: labor costs about five times more in China than it did two decades ago and now costs even more than it does in Mexico.
Yowza! I've been noticing less and less stuff coming from China in 2015 but, Mexico now cheaper?!
To be fair: I'd MUCH rather see Mexico pick up the slack because that'll get a LOT of Mexican nationals living here in the US to go back home and, not just illegal aliens either.
China's per capita GDP is around 8k (and even higher in the coastal regions) while Mexico and Brazil are both around 10K. I don't know whether this is amazing (China's economic growth) or depressing (Mexico and Brazil's economic stagnation considering both were richer in the 50s).
US media is very anti-China. Both the conservatives and liberals attack China constantly for various reasons. If you search "China" on Yahoo News, for example, 99.9% articles are negative.
I am not saying the reports are all false, but as a result, American people's opinion on China is largely shaped by those hostile reports. For example, many Chinese products have low quality, but it is just their marketing strategy. Nowadays nobody wants to keep a pair of shoes for 20 years, a fashionable design with relatively low quality is the rule for most products of today, because that maximizes sales. They are also told by foreign clients to do so. When high quality is needed, they can still make it. They are one of the only three countries sending manned spacecrafts after all, and your iPhones, android phones, laptops...are all made in China for the most part.
Mexico will not replace China for many reasons. The two countries have different sizes, cultures and peoples. It may sound politically incorrect, but the national average IQ of China is 20 points higher than Mexico, no matter what the reason is. An average worker in China can solve equations, but an average Mexican workers cannot. That will make a difference when modern technology is applied.
... ...
To be fair: I'd MUCH rather see Mexico pick up the slack because that'll get a LOT of Mexican nationals living here in the US to go back home and, not just illegal aliens either.
And there it is.
This place is slowly turning into Stromtfront, little by little.
This place is slowly turning into Stromtfront, little by little.
This is where Stormfront members go once they finish posting on that site.
Though with the OP, it is just a matter of time before factories are moved to another low wage country because wages got to high in places like China.
My guess is eventually we will see products say "Made in Africa" when we eventually get to the point that the only place left to make cheap goods is Africa.
US media is very anti-China. Both the conservatives and liberals attack China constantly for various reasons. If you search "China" on Yahoo News, for example, 99.9% articles are negative.
This was a scientific study right?
Quote:
Mexico will not replace China for many reasons. The two countries have different sizes, cultures and peoples. It may sound politically incorrect, but the national average IQ of China is 20 points higher than Mexico, no matter what the reason is. An average worker in China can solve equations, but an average Mexican workers cannot. That will make a difference when modern technology is applied.
... ...
One look at this chart tells you why: labor costs about five times more in China than it did two decades ago and now costs even more than it does in Mexico.
Yowza! I've been noticing less and less stuff coming from China in 2015 but, Mexico now cheaper?!
To be fair: I'd MUCH rather see Mexico pick up the slack because that'll get a LOT of Mexican nationals living here in the US to go back home and, not just illegal aliens either.
Workers pay increases 5X in just 20 years? Isn't capitalism wonderful? While communism was the dominant economic system in China....some 20-40 million people starved to death.
It was a matter of time. No different than what happened with Japan in the 70s/80s.
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