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by goodcanadian
4929 days ago
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The short answer is: it's complicated. I suspect a lot of economic turmoil, particularly in lower wage countries, as manufacturing would probably move back closer to the richer markets. Of course, at some point, the labour supply will run thin, wages will rise, and some outsourcing might make sense again. It might be very good for Europe and North America, but perhaps less good for developing markets. As another commenter said, however, prices might rise triggering spiralling inflation until the point is reached where things stabilise again . . . where the $7 minimum wage has been devalued to $1 or $2 or whatever the equivalent wage is currently in China. The experiment on a small scale makes some interesting reading here: http://www.acton.org/pub/commentary/2011/07/06/minimum-wage-... http://finance.yahoo.com/news/congress-oks-american-samoa-mi... |
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