Tuesday, May 8, 2007

It's a Mad, Mad World

Graphs like this one "melt it down" (to use some Marvinology) for me. As I read about U.S. companies piling investments into a communist country in which property rights are unclear, where fraud is rampant and where using the word "democracy" can land one in jail, I am baffled. Yet this graph shows why China is compelling. U.S. wages are 30X higher, not including benefit structures, meaning a company can either hire a U.S. worker for an hour or a Chinese worker for one week.

In addition, the Chinese worker saves half of his salary, effectively lending it to the U.S. Little wonder the U.S. Government has difficulty putting pressure on Chinese practices. Is it only me who senses something very wrong that the individuals making the most money are, in essence, borrowing from the people who make the very least?

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