<a href='With China Forecast To ReachWageParity With The US In Five Years, Is A New Manufacturing Golden Age ComingTo The US?
Submitted by Tyler Durden on 05/09/2011 22:40 -0400
Bureau of Labor Statistics Gross Domestic Product Japan Mexico Renaissance SocGen South Carolina Unemployment Yuan
A rather controversial perspective on "reverse labor mobility" has recently seen a revival following the release of BCG's analysis: "Made in the USA, Again: Manufacturing Is Expected to Return to America as China’s Rising Labor Costs Erase Most Savings from Offshoring" which claims that "within the next fiveyears,theUnited States is expected to experience a manufacturing renaissance as the wage gap with China shrinks and certain U.S. statesbecome some of the cheapestlocations for manufacturing in the developed world." While this topic, as we will shortly see courtesy of SocGen is far from taken for granted, could be the deus ex machina that could provide the historic jobs boost to Obama's second presidential campaign (should he get that far), it could also explain the eagerness of the Fed to continue exporting US inflation to China. If the latter is indeed the case, it would mean that the Fed will do everything to continue flooding the world with excess liquidity if for no other reason than to see Chinese inflation reach anout of controlstate, and wages explode, in an outcome that would ultimately undo the great manufacturing job outsourcing phase that marked the 1990s and 2000s. If successful,it would indeed lead to a second US renaissance in manufacturing jobs. However, will China allow its economy to lose the competitivewage advantageit has held for decades over the US, an outcome which would culminatein riots, asunemployment in the billion + nation goes parabolic. Of course,theconspiratorially minded can imagine a scenario in which the inflationary transference plan concocted by the Chairman has one goal and one goal only: to cause labor cost parity between the US and China in the shortest amount of time. The only two question in this case are: how long until China realizes what is going on, and how will it react?'>With China Forecast To ReachWageParity With The US In Five Years, Is A New Manufacturing Golden Age ComingTo The US?
Submitted by Tyler Durden on 05/09/2011 22:40 -0400
Bureau of Labor Statistics Gross Domestic Product Japan Mexico Renaissance SocGen South Carolina Unemployment Yuan
A rather controversial perspective on "reverse labor mobility" has recently seen a revival following the release of BCG's analysis: "Made in the USA, Again: Manufacturing Is Expected to Return to America as China’s Rising Labor Costs Erase Most Savings from Offshoring" which claims that "within the next fiveyears,theUnited States is expected to experience a manufacturing renaissance as the wage gap with China shrinks and certain U.S. statesbecome some of the cheapestlocations for manufacturing in the developed world." While this topic, as we will shortly see courtesy of SocGen is far from taken for granted, could be the deus ex machina that could provide the historic jobs boost to Obama's second presidential campaign (should he get that far), it could also explain the eagerness of the Fed to continue exporting US inflation to China. If the latter is indeed the case, it would mean that the Fed will do everything to continue flooding the world with excess liquidity if for no other reason than to see Chinese inflation reach anout of controlstate, and wages explode, in an outcome that would ultimately undo the great manufacturing job outsourcing phase that marked the 1990s and 2000s. If successful,it would indeed lead to a second US renaissance in manufacturing jobs. However, will China allow its economy to lose the competitivewage advantageit has held for decades over the US, an outcome which would culminatein riots, asunemployment in the billion + nation goes parabolic. Of course,theconspiratorially minded can imagine a scenario in which the inflationary transference plan concocted by the Chairman has one goal and one goal only: to cause labor cost parity between the US and China in the shortest amount of time. The only two question in this case are: how long until China realizes what is going on, and how will it react?</a>
