April 04, 2005

China Peak

It looks like the labor threat from the PRC is peaking. If we can just survive a few more years, rising wages will reduce the threat from the PRC and US manufacturers will no longer be swimming against impossible competitive conditions.

I've lived this story before. In the 80s it was the Japanese who were supposed to do us in with their unbeatable system of a manic workforce with industrial planning from the MITI led top. The Japanese threat receded, the PRC threat is about to. All that is left is greater creativity, greater production, lower prices, and a more varied culture commercially available all over the world.

Before I shuffle off this mortal coil, I expect to hear this story again but the PRC and India were the big ones. No other possible rising power can swamp globalization by putting so many money starved workers on the world market and caused the developed economic Core to recoil in horror, replicating the pre-WW I withdrawal from globalization's promise.

It's a very good year.

Posted by TMLutas at April 4, 2005 09:40 PM