On Feb 1, 2012, at 1:32 PM, brad wrote:
> Isn't part of the reason that China has become a manufacturing
> powerhouse because of what Dean is talking about - why would US
> investors invest in the US when they get much more for their money in
> China? Doug claims devaluing the US dollar is the easy (or cheap or
> something like that) way out, but obviously you wouldn't push that as
> the only path. Plus, what is wrong with doing things the easy way?
Because it doesn't work in the long term. It's a quick fix that dissipates quickly.
It's not just low wages that makes China appealing. There's good infrastructure and a skilled workforce. India can't match China's infrastructure, for example - the electricity keeps going off, for one.
Doug