Steven,
Today, Unions represent the lowest percentage of the workforce in the last 50 years, yet the economy is showing the highest and most sustained growth in our history. Union dominated industries have not grown with the rest of the economy because unions have stifled innovation. (Use Great Britain as an example of unions almost destroying an economy.)
I disagree that mandating higher wages for workers in the underdeveloped countries would increase consumer demand as the increased wages would be inflationary and counter productive. These countries must first develop a 'demand' for a larger workforce. Wages cannot rise when a company is paying 70 cents an hour to 2,000 employees and has 10,000 applicants for those few jobs because the average workers annual income is less than $500? As these companies succeed and grow, the demand for labor increases, businesses must increase worker benefits to hire and keep their labor = increased consumer demand.
The emerging markets are feeding on the consumer demand of the US and Europe. Any country mandating increased wages will make it more difficult for their businesses to compete in these markets and with other countries unless the wage increase is coupled with a currency devaluation = negating the wage increases. (Mexico)
IMO the problem in most all of the developing nations, particularly the communist countries, to be the lack of 'skilled' and 'trainable' labor. The successes of Japan and South Korea are a result of an emphasis on education. Ramsey made me realize the extent of this problem in China - three generations of 're-educating' intellectuals has resulted in virtually no one left to teach.
While it may seem unjust that the 'elite' profit from low worker wages, the choice at this point is better jobs versus no jobs. These 'elite' are the better educated, better able to take advantage of the business opportunities, and willing to take risks.
Just my opinion for what it's worth,
Ron
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