Re:The Economics of Falling Populations
by eru on Tuesday April 06, 2021 @09:06AM
(#26711301)
> 1. China has a massive massive population and the majority is still relatively poor. This is still lots of untapped labour available at low cost.
Well, at low cost compared to western labour, but at high cost compared to recent Chinese past.
(We would need to introduce some actual numbers in the discussion to say anything more precise.)
> They are capturing more of the profits because of this.
Just to clarify: things are still becoming cheaper for consumers around the world.
Overall the pie has grown. China might be getting relatively more of the pie, but the rest of the world also got more in absolute terms.
> 3. And at the same time, countries with even cheaper labour are competing with Chinese producers on the low end. You see this particularly with things like clothes and shoes which are labour intensive but relatively low tech.
Well, at low cost compared to western labour, but at high cost compared to recent Chinese past.
(We would need to introduce some actual numbers in the discussion to say anything more precise.)
> They are capturing more of the profits because of this.
Just to clarify: things are still becoming cheaper for consumers around the world.
Overall the pie has grown. China might be getting relatively more of the pie, but the rest of the world also got more in absolute terms.
> 3. And at the same time, countries with even cheaper labour are competing with Chinese producers on the low end. You see this particularly with things like clothes and shoes which are labour intensive but relatively low tech.
Yes. But yet, Chinese wages are going up.