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To: Fishfinder who wrote (29166)	4/18/2004 2:51:27 PM
From: E. Charters	Read Replies (1) \| Respond to of 39344

The question is in most parts of the "developing world" is not what they pay for work, but whether there is work at all. It is never the case that evil entrepreneurs, without check of reasonable wage legislation, pay a pittance for undereducated slave labour. There is always in every society a "fair" market for labour, and a need to make a domestic market by having an adequate money supply.. which in theory makes its way into the hands of the labourer/consumer. You don't want excessively high wages at any time. We in the G7 have excessively high wages and it causes inflation, and make the living for most people hard, as 75% of the labour force cannot make the high union wages. As a case in point, the average Chinese labourer makes a better living than his Indian counterpart, where wages are low and many are in poverty. Why is this? You would think that the totalitarian state, China, would mandate artificially low wages and treat their people with the disdain we picture the pharoahs treated the pyramid builders. Democratic India however is the more disorganized, with has few controls on wages, no welfare, and many punitive laws concerning flow of capital offshore. By comparison to China its economy is stagnant (And this is with an 8% growth rate in India!). The reason is the Chinese have a sweeping ability to clear the decks and institute proper economic and social change. India is tied up in land issues, transportation bottlenecks, overpopulation surges, social unrest, divisive groups, and lack of incentive to invest in homeland businesses. India is a bureaucratic nightmare. As much as it yearns to be a beuatiful bride, it is not the Cinderella yet, but an ugly stepsister. All it has going for it is a cheap labour force that is moderately well educated and speaks English so-so. Right now the advantage is all China's. Low wages? I don't think that is the issue. You don't improve the living standard overnight by doubling the wage, minimum or otherwise. That would be no advantage to the fragile growing economies of Tiger Asia at all. Wages will double soon enough, and this seemingly progessive change will bring all the attendant inflationary misery with its illusory "increased spending power". EC<:-}

To: Fishfinder who wrote (29166)	4/18/2004 4:42:31 PM
From: Cogito Ergo Sum	Read Replies (1) \| Respond to of 39344

Scott, OT... I'd give EC good marks for his response to you post. Furthermore I'd wager China understands this problem of labour and quality of life quite well. Estimates have almost 300 million Chinese participating in the new found wealth to various degrees, equivalent to the entire US population give or take.. Their biggest challenge is to continue to employ and improve the quality of life for the next 900 million, no small task.. I hope they don't look to India for positive examples.. India has been at it for a very long time, Blessed ?? with democracy, British know how.... with little IMO to show. You cannot just mandate quality of life... communism sure proves that.. It will be interesting to watch the next 20 years or so unfold as the wealth of the world is redistributed in a more balanced fashion by the natural forces of capitalism.. Spots