Actually, that is simply not true. China is not just full of low income wage earners. They are adding 350 THOUSAND engineers per year to their civilian work force.
This may be a case of Chinese schools successfully marketing to you. What they call an "engineer" and what the US calls a college educated engineer are probably not the same standard. If there are so many Chinese engineers entering the Chinese workforce, where are these amazing Chinese technology products? Again, I can't name ONE world class Chinese company, and I can't even name one Chinese company that can succeed in China without Chinese government support. They are a managed economy, and my guess at some point in the next decade or so, they have a massive, massive economic collapse.
What we are going to experience is foreigners simply will go to China for the good jobs. So all those immigrants, Indians and Chinese, that use to flock to the U.S. will not be coming here because they will be able to make more in China eventually.
No way, dude! Name one person that you know that has left their country to become an engineer in China! No way, and they certainly don't make more money.
In addition, engineering jobs will continue to shrink in salary and in number within the U.S. This is a long term trend and it will intensify as the Chinese economy ascends.
This is correct.
This will continue until wages and the supply of engineers reaches equilibrium in both countries. The net effect will be a lowering of the standard of living in the U.S. offset by an increase in the standard of living in China.
Partially correct, it will deflate US living standards in Chinese industries that compete with US industries, but the end result won't be parity. They will collapse long before they get to parity. The dynamism of the US economy will adjust to the increased supply of Chinese workers and respond accordingly, whereas when the Chinese economy hits some bumps in its growth path, it will collapse because it is non-transparent and centrally managed. That's how economics works - China will be the biggest economic collapse of our generation. |
