[rrrazdan]

One, being a bit pedantic but exchange rate has nothing to do with the income gap. If I measure distances in feet and you in metres, would you say that distances in my country are 'smaller'? The term that you should be looking at is per-capita income at purchasing power parity.

Two, economies go through development cycles. They start out in the low-skill jobs and then move on. For example look at the shipbuilding industry. Moved from the west to Japan in the 60's, who then used it to move to other heavy industries. After Japan had grown skills and incomes increased the industry moved to Korea. The same cycle is in process right now, with the industry now moving to China. Don't hate outsourcing, but use it to build a better future.