Erica, this is a fascinating comparison. Here is why. China pays less than we have, but its workers are as skilled as our workers. Therefore it is logical that business would go to the low-wage bid if the skills are equal. China, furthermore, is using our production of "American" autos there to in fact steal our know-how. It intends to be the world leader of electric car production, which is what China and India can afford on a mass scale as the price of oil skyrockets in time.
Germany on the other hand is a high-wage, high-skill economy, and after China, it sells the most "stuff" globally. Its "stuff" however is high-end technologies, and Germany plows back its profits into better, advanced equipment and better, advanced training to use this better, advanced equipment. Therefore, Germany is both a high-skill and high-wage success story!
The moral of the story is America loses on two fronts: low wages and high skills, plus high skills and high wages. The reason is simple. Our banksters, Wall Street, steal money in the form of profits from our companies and use them to speculate on the stock market instead of reinvesting the profits into better training and equipment. It is sad sad sad. Moreover, in the rush to make profits at any price, the Wall Street banksters are giving away what is left of our competitive know-how to China!
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