Sunday, February 8, 2009

Low Labor Costs in China

Today I read an article about low labor costs in China.  Many items come from China because labor is so cheap there and China can afford many workers on a low pay wage.  In China the labor costs are rising but slower than most countries.  This article reminds me of Nectar in a Sieve because the English built a tannery in a small Village in India because they could pay Indian  workers a lot less than they could pay other english men.  The problem in the book and with the Chinese is that the costs for labor are rising but the dollar is decreasing in value.  You may have a lot of money but you can't buy many things because of inflation and the decreasing value of the dollar.  Something needs to happen or this will continue and the results will not be good.  "Manufacturing Shifts from Asia to U.S., Mexico as Costs Rise."  Transport Topics.  25 August 2008.  08 February 2009.  

No comments: