Monday, February 20, 2012

Say Anything � Chinese Wages Increasing, Expect More Jobs To Return To The United States � Say Anything

Say Anything � Chinese Wages Increasing, Expect More Jobs To Return To The United States � Say Anything:
Protectionists here in America have long bemoaned the exodus of manufacturing jobs to China, where labor was cheaper. They demanded tariffs and other policies to restrict trade with China on the assumption that such policies would drive jobs back to America.

But as it turns out, such policies weren’t necessary. Free markets have a tendency to find an equilibrium in prices, and the international labor markets are no different. As China’s economy modernizes, wages are coming up, lessening the cost benefits for outsourcing there: