[jdlegg]

There's another way to "raise" the average and it's already beginning to happen. It is the organization of workers into unions and other democratic labor organizations. It parallels the movements that occurred in the United States in the early part of the 20th century. Except it's happening in China (and other "globalized" competitors).

Chinese workers will not put up with unsafe, low-pay factory conditions forever, despite what everyone seems to think. Most of China's population doesn't have access to reasonable healthcare, for example, and many of these factory workers live in slum-like dormitories located on the factory campus. This is to say nothing of the literal death-traps that exist in day-to-day working conditions.

The Arab-spring is evidence that, even in the 21st century, or perhaps more-so in the 21st century, collective action can provoke change. It's odd why so many see the process of globalization as a race to the bottom. In the short-term, yes, but in the long-term, no way.

Transportation, energy and other transaction costs could make it costlier to produce in China what can be produced in the United States when labor costs approach parity. At worst, the workers in China and the "average" workers in the west will meet somewhere in the middle.

[lukeschlather]

The unsafe, low-pay factory jobs will probably be replaced by robots before that happens. There are already a lot of cases for which Chinese workers are more economical than robots - but robots are more economical than low-pay Americans.

[batista]

There's the problem of who will buy the robot-produced goods (and fund the robot factories), when the large masses earn shit because of being replaced by robots.

Henry Ford had a lot to say on this very matter of paying employees well in general.

[jpadkins]

when goods are produced by robots, goods will be so cheap that people with low wages will be able to purchase those goods. The higher the productivity of economy, the less people have to work.

increased productivity helps all of mankind. At infinite productivity, nobody has to work anymore...