Re: (erielack) Where models are made (economics and international trade)

[Carl Gustafson <cgustafs_@_voicenet.com>]

On Mon, Aug 09, 2010 at 03:47:03PM -0400, RJFlei_@_aol.com wrote:
> 
> The difference is paying that Chinese employee 77 cents an hour or less.  
> This applies to all manufacturing. No EPA, no OSHA, no other regulation, 
> pollute  all you want, kill your employees through chemical exposure, or an 
> unsafe  working conditions, that's OK. 
>  

Well, there's another issue too - the exchage rate. China has that fixed at a fairly low (or, some say, unfairly low) rate. 
There was some talk about letting it float, but I think it's still pinned low, not floating freely. Let it float, and watch 
manufacturing costs in China soar...

(Actually, yes, wages and exchange rates are closely related, it's the exchange rate that makes labor look so cheap. If you 
compare actual living costs vs. wages, you'll see how exchange rates make the difference.)

Carl "More than meets the eye" Gustafson

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