[ExI] undercover at Walmart

[Rafal Smigrodzki]

On Thu, Feb 12, 2009 at 6:14 PM, Emlyn <emlynoregan at gmail.com> wrote:

>> ### The labor of a worker in China is much less efficient, on average,
>> than the labor of a worker in America (whether it is a Chinese or
>> American worker is almost irrelevant here). This is the reason for the
>> low cost of workers in China - they offer little, therefore they
>> cannot demand much.
>
> I call bullshit.
>
> Chinese workers get paid little because they don't have any other
> options; it's not like they can go down the street to where the
> workers get paid more.

### I am not sure what is the connection between what I wrote and what
you did. Of course, Chinese workers have a much harder time finding an
employer where they would be as productive as a worker who can choose
from American, highly efficient employers, therefore they cannot
produce efficiently, therefore they get paid less. The proper operator
between my statement and your statement is "AND" (or "therefore"), not
"bullshit".
----------------------------------------------
>
> The jobs are there because the companies look for the cheapest usable
> source of labour. If they demanded more money, the jobs would go away.
>
### Obviously, yes. Does that in some way invalidate the labor
productivity comparative values?

-----------------------------------


> This situation exists because capital can flow effortlessly around the
> world, but labour cannot.

### Yes ... and?

-----------------------------------
>>
>> ### Exchange rates are always in the long term defined primarily by
>> average labor efficiency. The only way the Chinese can become as rich
>> as us is by working as efficiently as we do.
>>
>> Rafal
>
> Long term is the key mistake here.

### The only time that looking at the long term is a mistake is right
before the Singularity.

---------------------------------------------


 Everything so far is short term.
> The differences between the US economy and the Chinese economy take
> time to even out. But perhaps we are now seeing some serious shifts.
>
> You would expect to see China moving up the food chain from low cost
> manufacturing to high end stuff & design.
> http://www.supplychain.cn/en/art/?800
>
> And of course you'd expect to see rising wages.
> http://www.ventureoutsource.com/contract-manufacturing/industry-pulse/2008/china-s-manufacturing-wages-the-olympic-hangover
>
### Sure. I would be very happy for the Chinese getting efficient and
rich. This is what I have been saying here before.

Rafal