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I don't think you understand what the numbers mean. GDP per capita is a measure of economic activity, not wages. US/EU GDP per capita numbers are higher because they engage in higher value added economic activities than China does.
I understand that when you go to a US dentist, she wants $5,000 for an implant.
When you go to a Chinese dentist, she wants $1,000 or less.
Does the US dentist produce something 5 times better? Of course, not.
I understand that when you go to a US dentist, she wants $5,000 for an implant.
When you go to a Chinese dentist, she wants $1,000 or less.
Does the US dentist produce something 5 times better? Of course, not.
It is because the US economy produces exponentially more value per worker than the Chinese economy which bids up the price of all labor. Wages are a function of the overall productivity of the economy as a whole rather than the productivity of the individual workers within a specific industry or job category. This is relative to the supply of labor of course.
When country A pays its mechanics, dentists or engineers five times as much as in country B, it means that something is happening in country A's economy to generate so much money that it bids up the entire labor market. High wages aren't a sign of economic weakness, but of strength. This is Econ 101 stuff.
The US is the front office of global capitalism, it is a major design center, a major center of finance, it is one of the global leaders in high value services. It is still a major manufacturer but it tends to have highly automated factories that produce upstream products like electrical generation equipment, community water filtration systems, medical equipment, machine tools, etc. These things don't have globally recognized brands but are all more lucrative than manufacturing labor intensive low value added consumer goods. This all bids up the price of labor for local services like dentistry, restaurants, car repair, etc.
The US is the front office of global capitalism, it is a major design center, a major center of finance, it is one of the global leaders in high value services. It is still a major manufacturer but it tends to have highly automated factories that produce upstream products like electrical generation equipment, community water filtration systems, medical equipment, machine tools, etc.
Let's examine the Boeing 737 MAX.
Boeing was supposed to introduce a new plane with new engines.
But engineering costs in the USA are astronomical compared to the 1960s. So, Boeing couldn't afford to engineer a new plane and just added new engines to the existing design changing its aerodynamics.
The Chinese and Russians can afford to engineer new planes because salaries are much lower. The West tries to impede development of those planes, though.
They are not cheap Walmart toys. They use the latest aircraft technologies.
The Chinese and Russians can afford to engineer new planes because salaries are much lower. The West tries to impede development of those planes, though.
Oh please, the Chinese airline industry uses almost all western commercial aircraft. We'll see what Comac can do in the next decade but industry experts aren't expecting much based on what they have seen so far.
Only the 90-seat, ARJ21 jet is in service. However, after suffering from delays, and being plagued with noise and other problems, the aircraft has been roundly rejected as inferior to planes from competitors such as Brazil's Embraer and Canada's Bombardier.
Peaceful unification is a fantasy that Chinese leaders naively and stupidly still hold. The taiwan issue can only be resolved through military means and more Chinese leaders are coming to that realization. This is a good sign. China needs to actually put its fist into it, or just let taiwan go. Constantly using its big mouth harping about how "Taiwan has always been a part of China" looks like a bad joke when China is too cautious, or too scared to put its fist behind that claim.
Taiwan doesn't have enough farmland to feed its population of 23 million. As shipping costs rise and Taiwan loses both exports and imports, it will probably need more food from China, or evacuate most of its population, if there is anywhere with enough food for a few extra million. China can simply wait for a hungry Taiwan.
Taiwan doesn't have enough farmland to feed its population of 23 million. As shipping costs rise and Taiwan loses both exports and imports, it will probably need more food from China, or evacuate most of its population, if there is anywhere with enough food for a few extra million. China can simply wait for a hungry Taiwan.
That's quite the unsupported fantasy tale.
FYI- The US alone exports enough soybeans to give 1,000 pounds a year to every resident of Taiwan and we don't even produce nearly as much as we could if prices increased.
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