However, I still cannot foresee how, in the immediate future or my lifetime, Keyesian prescriptions for Chinese domestic market or Friedman prescriptions for Chinese capital market will relieve OECD deflationary wage trends. Montary inflation over all simply discounts every investment metric I can think of.
Not that that standard says alot. Diversity is the key to economic and political evolution.
Part of the reason that China isn't developing the same way that Taiwan or Korea did is that those countries had much, much smaller populations.
Remove those workers from the global labor force because there's internal disorder in the country (which is likely if growth slows, which is probable in the next few years) and suddenly you have a lot less workers to do the same amount of work. And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg
China's total population is an outlier relative to that of any other OECD member. Also, total factor producitvity (TFP) immediately discounts estimated transaction costs of collective and disaggregate labor market bargaining power given automated technology transfers and "leakages." Moreover, Taiwan's and S.Korea's industrial growth (or GDP) have enjoyed ("profited" from) decades of US FDI and favored-nation trade status for decades more than China's WTO-sanctioned participation in integral OECD economic policy/capital formation.
I don't think this line of reasoning will take you where you want to go, presumably labor market reconciliation. Diversity is the key to economic and political evolution.
