Report: Millions of Jobs Heading Home from China
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  • Jim.

    I keep saying — as long as we can keep expanding the world’s resource base, the rise of the 3rd world is in human terms a good thing.

    Over time, wages (and standard of living) will equalize between China and the US. Job opportunities, factory siting criteria, these will equalize along with that.

    What we should be concerned about is whether the standard of living will equalize at a level (far) below that enjoyed up until recently by the US. Will young auto workers make $10/hr? How about $15-$20/hr? $40/hr seems unlikely, but you never know. There is in fact hope, if we expand raw materials production.

    Wages, and what those wages will buy, is a function of the magnitude of raw materials production.

    In the beginning of each production thread, the economy has raw materials. The economy processes them. Then it shares out the results. More raw materials in, more to share out at the end. This is not subject to any kind of loaves-and-fishes miracle.

    (The service sector is another story, but insofar as an irreducible amount of our standard of living is based on goods and not services, the point stands.)

    (Efficiency and Innovation also will not save us from having to expand our resource base. Too often, victories claimed by the forces of “efficiency” are merely a real decline in standard of living repackaged as gain. As for innovation — it affects marginal percentages, while the rise of the third world requires about a factor of ten increase in production. It’s nice and will add up long term, but not nearly enough to help our near-term economic problems, as globalization proceeds so quickly.)

    Oil strikes in North Dakota should be celebrated for what they are — the only chances of the workers (such as the unhappy ones in Wisconsin) to arrest the decline of their standard of living. It is the only defense of the Baby Boomers for the integrity of their retirement plans. It is the only hope of the present youth of America for a standard of living anywhere near our parents.

    The first leader to articulate this effectively will gain high office, and the leader to follow its prescriptions will lead America back to domestic peace and prosperity.

  • Wait a minute: – You mean those clever Chinese are as human(and so enticeable by higher living standards)as we are? What is this productivity-at-all-costs world coming to?

    Anyhow, thanks this time around for some REAL good news. And regards to Jim. for more of the usual clear-headed common sense.

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