Investment and Business News: At last, Chinese wages rise: is this the end of bubbles?

Actually, there are two articles here. One on China and the yuan the other on the danger that we may be heading for depression. But they have a common theme, and the second articles follows the first. This is the key paragraph: ‘Economic growth needs workers to be paid more. In times of innovation, or globalisation, there is this tendency for the fruits of growth to top up company coffers and bypass the workers. This in turn can lead to asset and commodity bubbles, and starve the economy of the aggregate demand it needs. Or alternatively we can see corporate savings sloshing around the banking system and promote consumer demand via debt.’