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But if this is the case, why isn't the deficit going down rather than up? The fact is China maintains its massive national saving rate - as if it was poor - even as millions of Chinese are now middle class - and even as millions of Americans are now sufficient poor that they should in theory be better able to compete with Chinese workers.
It's really surprising people don't get it and reject globalization at just the wrong time.
no more manufacturing jobs even for China: these workers are racing to bottom fast and going to third-world countries like Bangladesh and Ethiopia
Here the NYT explains that we were just about to see the reward for decades of being pushed around economically: the much hoped for rise of a new class of middle class customers in China and elsewhere, that will massively benefit businesses in the West.
But if this is the case, why isn't the deficit going down rather than up? The fact is China maintains its massive national saving rate - as if it was poor - even as millions of Chinese are now middle class - and even as millions of Americans are now sufficient poor that they should in theory be better able to compete with Chinese workers.
Not only that, but the author warns us against the next wave of globalization :
"Now, the challenge is Chinese competition on more technologically complex products, like automobiles, airplanes or microprocessors. The manufacturing of more labor-intensive, less technologically complex products like apparel is migrating to lower-wage countries like Bangladesh and Ethiopia."
Get it?
1 - no more manufacturing jobs even for China: these workers are racing to bottom fast and going to third-world countries like Bangladesh and Ethiopia.
2 - information-intensive industries (automobiles, airplanes, microprocessors software development) are about to meet the same fate as manufacturing industries: i.e. massive competition from countries like China.
But don't worry you'll keep your chances for a local "service job": waiter job, or maybe hair-dresser, to serve the few rich people who will make it and will be insanely rich.
It's really surprising people don't get it and reject globalization at just the wrong time.