Display:
The problem with China is that you have a labor force that has grown by roughly 100 million since 2000.  That's about half of what the EU labor force is in 2010.

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

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Sun Jan 24th, 2010 at 01:58:41 PM EST
[ Parent ]
I don't think comparing labor or work force population growth rates, China:EU or China:OECD, are useful. That is the rate is a statistically insignificant indicator of desirable full employment levels for respective national economies or correlative national account balances.

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.

by Cat on Sun Jan 24th, 2010 at 04:27:56 PM EST
[ Parent ]

Display:
Login
. Make a new account
. Reset password
Occasional Series