Yes, ElM, <Have you heard about Purchase Power Parity. > My brother invented the hamburger test a decade or two before it became official [now the Big Mac test].
But the fact that people don't keep their high minimum pay doesn't mean it's not high pay. When companies consider where to locate and when money flows from high to low voltage, as water flows downhill, and air flows from high pressure to low pressure, economic flows do not favour the high minimum wage places unless there are countervailing benefits which still make it worthwhile [such as rule of law, freedom, capitalism, democracy, climate, lack of Islamic Jihad and all the millions of other variables which dictate choices people make].
With China and India taking their jack-boots off their citizen serfs [at least somewhat], it means capital can flow and the merits of the USA versus China and India are reduced somewhat too.
If Zimbabwe was taken over by New Zealand as a colony and NZ rules were introduced, with Virtuous Victoria Values being added too, then Zimbabwe would be a wonderful place and swarms of people would want to live there.
A tenth of the amount is a BIG difference. Hamburgers are not that much cheaper in China. Neither is petrol. Nor fresh schnapper.
I did very well by going to live in high-paying foreign countries, saving our money flat out, bringing it home to NZ. Money flows. Mexican pump it out flat out. They don't just spend it all on stupidly expensive things.
Feel free to come here for tuition on economics any time.
Mqurice |
