Factory wages in China are almost $2 more per hour than factory labor in Mexico.
I don't buy this argument.
Sure, labor protections in China are weak, but let's use our mirrors: the US has no guaranteed paid time off of any kind, it has unions on paper only, 1 in 10 Americans have no health insurance, and it's nearly the only country where medical bankruptcy exists as a concept. The largest employer in the US runs a scheme where their workers are intentionally kept part-time with low enough wages to need SNAP assistance and other social safety net programs, as well as avoiding any obligation to provide health insurance, effectively subsidizing their corporate profits with tax dollars. America's middle class has been shrinking via housing, healthcare, and education cost inflation while China's middle class has been growing as its industries have continually moved further up the value chain.
"China is just cheap labor" is a last-Millennium viewpoint. China is a manufacturing ecosystem where you can walk into a physical marketplace and find rows of vendors with skilled technicians who all know how to work on electronic or machinery or other manufacturing skills, where they offer services like chip-level NAND upgrades where they solder on storage upgrades to your iPhone while you wait.
China is now a country where you would pay a price premium to buy their products over competitors.
Yeah but China is a low cost economy, rent, food and things like transport and electricity are cheap. That means employers simply can pay workers less than the USA because the cost of living is so high in the USA.
Right…which means China is managing their economy better. It’s not like the commenter above us who claims it’s all about repression and restriction.
Literally last night the US president stated that his policy is to keep real estate expensive, and his main attempt to lower housing costs is by lowering mortgage rates, a policy which is incredibly short-sighted and squeezes American workers more. It also won’t work as housing is sold at market value: lowering rates will increase sale prices as buyers compete on available supply and the amount they can pay on a monthly basis.
I am not specifically trying to get political about it, but the Republican Party is generally opposed to public transit and is essentially anti-urbanism. They view cities as dangerous bad places with evil Democrats in them. They have done things like holding federal transit project funding hostage to MAGA demands.
Meanwhile, you don’t need to own a car to live in China and get around. They built out the world’s premier high speed rail network, and they’ve built massive metro systems in their cities rapidly.
Those “ghost cities” in China? That’s also known as “available housing.” They usually eventually get filled. Americans paying above-inflation rates for homes would envy that sort of thing.
Most other countries including China would consider the high cost of healthcare to be a pressing national emergency, but the US government has allowed the insane status quo fester.
I don't buy this argument.
Sure, labor protections in China are weak, but let's use our mirrors: the US has no guaranteed paid time off of any kind, it has unions on paper only, 1 in 10 Americans have no health insurance, and it's nearly the only country where medical bankruptcy exists as a concept. The largest employer in the US runs a scheme where their workers are intentionally kept part-time with low enough wages to need SNAP assistance and other social safety net programs, as well as avoiding any obligation to provide health insurance, effectively subsidizing their corporate profits with tax dollars. America's middle class has been shrinking via housing, healthcare, and education cost inflation while China's middle class has been growing as its industries have continually moved further up the value chain.
"China is just cheap labor" is a last-Millennium viewpoint. China is a manufacturing ecosystem where you can walk into a physical marketplace and find rows of vendors with skilled technicians who all know how to work on electronic or machinery or other manufacturing skills, where they offer services like chip-level NAND upgrades where they solder on storage upgrades to your iPhone while you wait.
China is now a country where you would pay a price premium to buy their products over competitors.