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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: skinowski who wrote (108897)	6/30/2010 6:55:32 PM
From: GST	2 Recommendations Respond to of 110194

<a big difference between "moving people" and "people moving"> The people moving around in China are generally moving for economic reasons. They are 'forced' to move to the extent that economic conditions are poor in one place and a bit better in some other place. But they are not told to move per se. The US Mexican movement of people is similar in that sense. If there was more work in Mexico it would dampen the incentive to slip across the border into the US. There are many aspects to the movement of people that can be problematic over time and in large numbers. This is particularly obvious where you have your labor force living in dorms near a factory but hundreds of miles from their 'homes'. You can't have so many tens of millions of people moving around like this without running into issues of sustainability and limits to growth. Instead of building more factories where there is a local labor shortage, the government has promoted development of factories where there are labor surpluses. This is the motive force behind the move up the Pearl delta and to more western regions of China away from the coast -- the large cheap labor pools. China is anything but a homogeneous economic entity -- it has labor shortages and rising incomes right along side harsh economic depravity and massive under-employment -- it is sometimes hard to grasp how these things co-exist -- but they do.