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To: Amy J who wrote (16636)	2/4/2004 9:21:07 AM
From: Wyätt Gwyön	Respond to of 306849

Amy, RE: "the answer is massive deflation and bankruptcies and depression in America. just watch." you wrote: Doubtful, because you're forgetting as millions and millions of more Indians and Chinese enter the middle class, they will desire to purchase middle class products, many of these will be American products. well, let's back up a sec. these oodles of Chinese and Indians are doing work formerly done in the US for 10% or less of the wages received by US workers. so they will have 10% of the spending power. replacing 100% spending power with 10% spending power does not seem beneficial in the aggregate. and of course, on a 10K salary, which may be a princely sum to a senior programmer in India in their mid-30s just as the American programmer he made redundant was once happy with a low-six-figure salary, one cannot afford the same level of "middle class products" to which Americans are accustomed. OTOH, one could probably afford other things not considered here except by the extremely wealthy; e.g., multiple full-time servants working for $1 a day or so. i have read that a live-in maid/cook can be had in major Chinese cities for $50 a month. the WSJ had an article where they interviewed one such maid, who had to work for just $45/month when her employer arbitrarily lowered the salary. i think many "middle class" people in the Former Third World are likely to avail themselves of the extremely cheap labor pool around them. and the yuppie accoutrements which they do buy will probably mostly come from China and be cheap foreign-backed cars or outright knockoffs. GM has recently faced this problem as a fake Chevy called the Chery QQ or something hit the streets for 6K or so, more than 1K less than the Chevy version would cost.