WOW 1.2% growth in wages for Americans between that and our tax break we be shitten in hi cotton
Llpoh
January 14, 2018 4:20 pm
Wage growth relies on increasing the distance between what you put out and what your competitors put out for a given amount of money.
In other words, you have to justify increases by adding more value per dollar than your opposition. And that is not happening.
I have made estimates at various times, and can see no way for US, or Australan, wages to increase given that competition from China etc. has not reached an equilibrium. If anything, I am amazed real wages have not cratered even more than they have. Low to moderate skilled Americans and Australians are paid far beyond their worth in the current global market – probably 1/3 more than their commercial worth.
If wages can manage to hold constant and not fall, it will be an enormous achievement. Things are not going to improve for the middle class. Quite the contrary.
You are correct that China is not even close to its economic potential. In fact it is a non-player in terms of industrial goods. What little they produce is of shoddy quality. One day, a decade or two from now they will arrive and it won’t be just the US that feels it but Germany too.
None of those are of Chinese design. Today they are just producing copies of mostly obsolete designs. Tomorrow they will give GEA, SPX, Tetra Pak and Krones serious competition.
Z – they make some crap. But they also make some products that are very high quality – as good as anywhere. They have picked the low hanging fruit and are now getting out the ladder for the rest.
steve
January 15, 2018 9:07 am
Anybody notice how the top wage growers are not allowing immigration from shitholes
You will find more statistics at Statista
Wages o’ sin•thetic growth. Like carbuncles.
WOW 1.2% growth in wages for Americans between that and our tax break we be shitten in hi cotton
Wage growth relies on increasing the distance between what you put out and what your competitors put out for a given amount of money.
In other words, you have to justify increases by adding more value per dollar than your opposition. And that is not happening.
I have made estimates at various times, and can see no way for US, or Australan, wages to increase given that competition from China etc. has not reached an equilibrium. If anything, I am amazed real wages have not cratered even more than they have. Low to moderate skilled Americans and Australians are paid far beyond their worth in the current global market – probably 1/3 more than their commercial worth.
If wages can manage to hold constant and not fall, it will be an enormous achievement. Things are not going to improve for the middle class. Quite the contrary.
You are correct that China is not even close to its economic potential. In fact it is a non-player in terms of industrial goods. What little they produce is of shoddy quality. One day, a decade or two from now they will arrive and it won’t be just the US that feels it but Germany too.
“What little they produce is of shoddy quality.”
Like the iPhone, Boeing aircraft parts and Airbus aircraft.
https://www.itimanufacturing.com/news/five-companies-overseas-manufacturing/
None of those are of Chinese design. Today they are just producing copies of mostly obsolete designs. Tomorrow they will give GEA, SPX, Tetra Pak and Krones serious competition.
Z – they make some crap. But they also make some products that are very high quality – as good as anywhere. They have picked the low hanging fruit and are now getting out the ladder for the rest.
Anybody notice how the top wage growers are not allowing immigration from shitholes