Nathan Newman has an interesting link about an impending labor shortage in the Chinese manufacturing sector. Although the conclusion his post is begging us to make is that Chinese labor conditions are deplorable, isn’t this exactly the way it is supposed to work? Manufacturers will have to raise wages (and prices), raising living conditions in China (and with it demand for our goods and services) while also making our own manufacturers more competitive with the Chinese. The “race to the bottom” actually works.
