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by mc32 1966 days ago
There are different kinds of labor from immigrant populations, one is mostly brawn, the other is the one that brings brains (and conversely may cause brain drain in the source country).

That said, China has been successful (there are others) and have achieved success without this input. So I don’t think it’s a necessary ingredient. That said, talent improves economies. Imported labor (as well as automation) drives down labor costs and affects unskilled and semi skilled workers the most.

2 comments

On the contrary, China's success comes from exactly this form of migrant exploitation, only internal to the country, and codified by law and culture into a two-caste system. Urban citizens get one set of opportunities, rural citizens get another. Legislation and opportunities overwhelmingly favor the urban citizens, and massive wealth transfer occurs between the two groups.

"Today, holders of rural hukou are ostracized and discriminated against by their fellow citizens, and have little choice but to take on the most dangerous, demanding, and low-paying jobs that those with urban hukou wouldn’t dare involve themselves in."

https://www.diplomaticourier.com/posts/chinas-caste-system-h...

https://en.wikipedia.org/wiki/Hukou

What China isn’t doing is importing labor. When it does it makes sure to get the good end of the deal: a foreign concern wants the Chinese market? Ok, invest, give us access to IP, show our people how to make the enterprise work. Then they copy once they have leaned.

Not many expats get to become citizens of China despite the wealth and power they have contributed to China. Chine see it as them doing _you_ a favor, not the other way round.

If China were like the US you’d have people from all over Asia streaming in to cash in on a growing economy, instead they make sure this wealth is spread amongst themselves rather than putting the poor against others willing to work under poorer conditions.

> Imported labor (as well as automation) drives down labor costs and affects unskilled and semi skilled workers the most.

The impacts of automation are massive, I really recommend this Andrew Yang interview [0]. It's a real eye-opener.

I had not realized the scale of this mess before watching that episode. Interesting numbers and insights in that 17 minute segment.

[0] https://www.youtube.com/watch?v=NAtyv8NpbFQ