[quote=“Huang Guang Chen”]Tell me ac, just what innovations China has come up with since gunpowder, aside from cheap brick kiln delivery systems, I’m intrigued.
After PRC wages increases, there will be room to inject innovations (automation) into their manufacturing process. Thus reducing their workforce needed.
However, USA is on the tail end of the labor cost and automation implementation in manufacturing. The only thing left to do is reduce the workforce and introduce full automation in the low skill labor market in the US.
Because the premise of the argument is that if we reduce low skill immigrants, there will be pressure to increase wages. To which I argue the market will not sustain those prices. Since no one in the US is as rich as they believe to buy at a luxury price point. If US were able to buy goods and services at a luxury price point, you think Wal-Mart would be largest retailer in the US?
And some employees at Wal-Mart collect welfare…which is the documented labor solution to the problem. Part-time employment with no benefits, and some government relief to make up the difference.
It is just unrealistic to think it is a sustainable model in the long run. Basically putting workers on government relief, like the auto-industry. Cyclical lay-off and re-hiring, only to have factory workers become a burden to the State 3-4 months out of the year.