[easy2012]

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Taiwan's Foxconn Technology Group has raised wages by up to 25% for its Chinese workers who assemble electronic gadgets for Apple and other global brands.

Foxconn said its Chinese workers now receive 1,800-2,500 yuan (£180-£250) per month following pay rises which took effect on February 1.
Foxconn employs about one million workers at several massive plants in China.
In 2010, a spate of worker suicides at an enormous Foxconn complex in the southern town of Shenzhen drew attention to the stress many young workers faced working in some factories.
Subsequently, Foxconn then raised its monthly wages from 900 yuan (£90) to up to 2,000 yuan (£200).

I also read about many reports about Generation Y in the emerging world refusing to take up low paid, long hours work (while living off their parents). The tide may be turning (and also end of super cheap goods while MPC find new excuses on why inflation is consistently above the target...)

[FaFa!]

When I was in Beijingfiver half a decade ago before the latest bout of inflation the average wage was around 3000yuan a month. Basically what you are looking at here is a move from long hours and slave wages to long hours and low wages.

Generation Y in China isn't telling anyone to bog off, not with astronomical house prices and a rising cost of living.

This post has been edited by FaFa!: 19 February 2012 - 01:19 PM

[Chuffy Chuffnell]

FaFa!, on 19 February 2012 - 01:18 PM, said:

Generation Y in China isn't telling anyone to bog off...

Well, they can't - they live in a iron-fisted dictatorship.

[R K]

easy2012, on 19 February 2012 - 01:04 PM, said:

I also read about many reports about Generation Y in the emerging world refusing to take up low paid, long hours work (while living off their parents). The tide may be turning (and also end of super cheap goods while MPC find new excuses on why inflation is consistently above the target...)

That's good then isn't it.

Trade deficits will reduce as the rational for production in China dissipates.

Ben's policy of inflating China will pay off eventually.

[Errol]

Red Knight, on 19 February 2012 - 01:32 PM, said:

That's good then isn't it.

Trade deficits will reduce as the rational for production in China dissipates.

Ben's policy of inflating China will pay off eventually.

Shame that America is already totally destroyed.

[CrashedOutAndBurned]

easy2012, on 19 February 2012 - 01:04 PM, said:

I also read about many reports about Generation Y in the emerging world refusing to take up low paid, long hours work (while living off their parents). The tide may be turning (and also end of super cheap goods while MPC find new excuses on why inflation is consistently above the target...)

Not really market forces with thousands more turning up for new Foxcom jobs every week than there are jobs. More like the realisation that the slaves might get unruly if they're not given a few more crumbs. That's why the lot of workers usually improves - ruling class fear.

[Democorruptcy]

Main purpose of QE.

Cause inflation worldwide to drive up wages then later wages can also rise in the West and assets don't look as overpriced in relation to incomes. They have to push their wages up first or the West is to uncompetitive. Meanwhile those relying on fixed incomes are totally stuffed, unless interest rates rise as well.

[Compukit UK101]

easy2012, on 19 February 2012 - 01:04 PM, said:

I also read about many reports about Generation Y in the emerging world refusing to take up low paid, long hours work (while living off their parents). The tide may be turning (and also end of super cheap goods while MPC find new excuses on why inflation is consistently above the target...)

Didn't Scepticus say this would happen. He wrote a post about it about 1 year ago. Can anyone confirm ?

[wonderpup]

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(£180-£250) per month

So that's the target we need to reach in terms of pay in order to become competitive-- £62.50 a week

So it's not just flexible labour we need- it's financial contortionists with the ability to pay UK living costs on Chinese wages.

[interestrateripoff]

Has Chinese productivity gone up by the same amount?

Or is this the real level of inflation in China.

[homeless]

guess its off to cambodia and chad now for the cheap labour.

it will all end with some mentally ill worker in a jungle somewhere pressing a button for 6 moths a day, and then there will be no-where else to go.


the world is run by sociopaths, the evil bastards

[scepticus]

Compukit UK101, on 19 February 2012 - 02:17 PM, said:

Didn't Scepticus say this would happen. He wrote a post about it about 1 year ago. Can anyone confirm ?

Yes I can confirm that.

[Bloo Loo]

scepticus, on 19 February 2012 - 07:10 PM, said:

Yes I can confirm that.

History repeats....of course they will catch up...as any other exploited Country takes up the means of production, its workers then become the neuvoux riche...see..singapore, and any other place that used to produce cheap goods for the West, cheaper than the West could do so.

[Lone_Twin]

wonderpup, on 19 February 2012 - 04:46 PM, said:

So that's the target we need to reach in terms of pay in order to become competitive-- £62.50 a week

So it's not just flexible labour we need- it's financial contortionists with the ability to pay UK living costs on Chinese wages.

Uk living costs will (comparatively) fall.
The great levelling is inevitable, it will be lumpy and contain periods of discomfort but we will all be better off for it eventually.

[wonderpup]

Quote

Uk living costs will (comparatively) fall.
The great levelling is inevitable, it will be lumpy and contain periods of discomfort but we will all be better off for it eventually.

A race to the bottom only ends when the bottom is reached- and who knows how deep that hole will be?

The oddest thing about the Globalists is their failure to grasp that a globlaised economy has no 'outside' - so when we- all at the same time- play the supply side game we end up with a world of exporters with no one to export to.

It's important to be competitive- that's true- but it's even more important that there be something to compete for. And that prize would be the disposable income that the supply side geniuses define as surplus fat on the sleek body of the economy.

So it may well be that when we have all transformed ourselves into the ultra efficient low wage production powerhouses we dream of becoming- we discover that there is no spending power left to absorb the products.

This post has been edited by wonderpup: 20 February 2012 - 12:19 AM