interesting article about rising wages in china and jobs returning to the US.
Analysis Finds That U.S. Could Gain 2 to 3 Million Jobs and an Estimated $100 Billion in Output as Seven Industry Clusters Approach a ‘Tipping Point’ over the Next Five Years
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Yup, I read something similar. It will require semi skilled workers, but it will happen. Should be good and balance things out a little.
Whoever is president will get credit. This next election is going to be BRUTAL. Cool stuff, I'm kind of happy this theory is getting some press.
on the way to parity?
I wouldn't call it parity. We have 6MM people who are long term unemployed. Maybe a chunk of them will get hired. Either way this will benefit the people most hurt by the economy.
There is a need right now for semi skilled workers. People need to learn a trade. The days of unskilled assembly work are largely over.
Oh I totally agree with what you are saying ANT... but I said "on the way" there is a long way to go and 3M jobs wont cut it...
Oh yeah. People freak out, but they fail to realize the hidden costs of doing business in China.
Chinese wages will rise and people will demand better working environments. With IP issues, political pressure and the cost of transporting these goods back home, you will see stuff that is just a little cheaper to make in China come back here.
Many jobs that went to China were taken from Mexico. They won't go back to Mexico because of the state of affairs there. We will see an influx of semi skilled factory work and people will have to accept the 10-12-15 dollar an hour wages (as opposed to the 20-25-30 they were used to back in the day).
what about other asian countries, africa, latin america? cheaper regions WITHIN china?
China is low cost labor, but it has the infrastructure and stable government needed. Plus there is so much outsourcing and manufacturing going on there that it is easy to find a facility and transportation.
You go to other places and you might find labor, but not everything else. Same thing with Africa and Latin America.
Not saying some won't go there, but China is the perfect storm. It is just easier and cheaper to do some things in the US vs. move all over the place.
People always think working cheaply is the only thing. A lot more goes into the equation.
Bingo. Higher energy costs mean you need to produce a lot of this stuff where the resources are. Let's see, the US has more natural gas, more food, more iron than anyone else on earth. Why not the US?
So the question is: HOw can we make money off this?
3 million jobs coming to america sounds pretty awesome to me... lets do it!
Lets get this economy going before I'm out looking for a job haha
jktecon, that's what I thought of as well. Just trying to maximize all options.
I was thinking why the politicians argue against import tariffs on Chinese goods by saying most of the jobs will simply go to other countries. It contradicts this article, so believe the politicians or bcg?...lol
Another evidence cited in the article was flattering import to the US, though its a great point, the other side of the equation is flattering US consumption. You can only import as much as you consume....right?
Also, this doesn't necessarily mean exports will increase because I think the article is strictly pointing out the products already consumed in the US, whose cost structure involves higher logistics cost than wage, will be manufactured domestically.
http://www.bcg.com/documents/file84471.pdf
“We’re on record predicting a U.S. manufacturing renaissance starting by around 2015." - Well what are these people going to do for next 4 years? Wait for the job that's a prediction?
Jesus, you tell people 3 million jobs may be coming back to the US and they still complain.
Nice prediction, but easiest possible the long term trend in the US for the manufacturing sector has been in decline since the 70's. If we are really gonna revive the economy the only solution is to incentivise the manufacturing sector through policies and tax breaks, will it be till 2015 thats pretty far but I guess BCG tried to cover their ass.
Union killed all the jobs in America.
^^^^absolutely!
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