The Wage "Condition" in Communist China

The 94% Factor

According to "Laborsta" - the statistical base of the "International Labour Organization", Wages in China manufacturing are 94% less in China than in the United States!

Thus, a product that costs $100 to produce in the United States can be "landed" in the U.S. from China for about $15. (These prices are based on "minimum-margin" prices)

What can we do to become competitive? Lets say we can convince the Chinese Communist government to: 1) adjust their currency, 2) institute new environmental standards, 3) initiate health and other employee benefits and 4) we add tariffs or whatever else we can think of

The $15 Chinese product would increase as follows:

...currency adjustment add 40%-------------------$6

...new government regulations add 20%------------$3

...employee benefits add 20%---------------------$3

...tariffs or whatever we think of add 40%---------$6

THE NEW CHINA COST WOULD BE ---------------$33



Lets say now we can convince the U.S. government to eliminate: 1)all government regulations, 2)health benefits, 3)corporate income taxes 4)another 20% for whatever we can think of.

The $100 U.S. product would decrease as follows:

...government regulation subtract 5%---------------$5

...health benefits subtract 7%----------------------$7

...corporate income taxes subtract 3%--------------$3

...whatever else we can think of subtract 25%------$25

THE NEW U.S. COST WOULD BE ---------------------$60


If we could miraculously convince both governments to do all of these unrealistic things...

WE STILL CAN NOT COMPETE WITH THE LOW WAGE "CONDITION" FORCED ON CHINESE PRODUCTION WORKERS by the Communist Chinese government!

Herein lies the SOURCE of the problem facing manufacturing in The United States. It is also contributing to a shrinking middle class in America.

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