This article has a significant finding. It contends that while the shift of manufacturing jobs from the US to China did create a tremendous number of jobs in China, it did not lead to an increase in manufacturing wages.
This would seem implausible until you remember that China had (and still has) hundreds of millions in the hinterlands working in substance farming. These workers could move to industrializing areas and get higher wages, which kept manufacturer from having to compete for workers to fill demand from the US. To put it another way, the great increase in living standards in China was due to hundreds of millions from the countryside being able to earn manufacturing-level incomes, and not to global demand for Chinese goods also increasing those incomes.
https://www.nakedcapitalism.com/2019/03/china-syndrome-redux-new-results-global-labour-reallocation.html
No comments:
Post a Comment