The Chinese worker gets a raise of 13%

[Joanne98]

Chinese province raises wages 13%
By Tom Mitchell in Hong Kong and Geoff Dyer in Beijing

Published: February 7 2010 19:17 | Last updated: February 7 2010 19:17

A decision by the province that is China’s second-biggest exporter to raise minimum wage rates has heightened expectations that other provinces and cities will soon follow, just as the central government’s attention is shifting from economic stimulus to rising inflation.

Eastern Jiangsu province, which exports more than Brazil and South Africa combined, raised its monthly minimum wage rate 13 per cent to Rmb960 ($140) last week. It was the first time the rate had been adjusted in two years.

The potential round of minimum wage increases comes amid signs that inflationary pressures are picking up in the Chinese economy after a rapid recovery in the second half of 2009, fuelled by a huge government stimulus programme. Government officials are debating whether to slow the pace of new loans and begin appreciating the currency to dampen inflationary expectations.

“This could be a red flag about wage inflation,” says Arthur Kroeber, editor of China Economic Quarterly. “Inflation in China is becoming systemic because of rising wages caused by a tighter labour market.”

http://www.ft.com/cms/s/0/fa86afe4-1418-11df-8847-00144feab49a.html?nclick_check=1

This is actually good for the workers here. But listen to the "free market" capitalist in America WHINE already. WAGE INFLATION!

[zbdent]

1. won't that kill the jobs?

[RUMMYisFROSTED]

2. To $140 a month.

:cry:

[Statistical]

4. You got to apply PPP.

PPP is China is 0.18 which means goods and services are roughly 18% of that in the United States.

So $140 a month is more like $780 in US.

Not saying it is good but it isn't as bad as it looks at first glance. that is why PPP (Purchasing Power Parity) is useful.

Min wage in US is $7.25 = $14,500 annually or $1208 a month.

Chinese min wage (adjusted for buying power) is roughly 65% of the United States.

Better than most people would expect of China (or maybe worse than most people would hope for the United States).

[Joanne98]

5. Thanks Statistical.

:hi:

[upi402]

9. USA 6th, China 101st on this PPP country list

I'm not sure about this PPP list by country though.
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28PPP%29_per_capita

I've been to developing countries that allow citizens worry free lives and more free time. They have medical, cheep healthy real food (which reduces medical even more), never need heat, very efficient and cheap public transit, and cheap housing at 1/3 min. wage in the biggest city.

Try getting a place in NY for 1/3 monthly minimum wage.

[Statistical]

10. Yup PPP is the only way to measure wealth.

When people are confused by or try to refute PPP I ask them this:
"Imagine tomorrow your wages doubled, now also imagine tomorrow the cost of everything tripled. Are you richer or poorer? Now imagine instead your paycheck is cut in half but the cost of everything declines by 90%. Are you richer or poorer?"

Wages is an arbitrary figure. $1, $100, $1,000,000. Money is meaningless without context. How much purchasing power that money has.... that is the context.

In simple terms how much of a lifestyle can the min wage or median wage buy in that locality.

[Rapanui1]

3. good news for workers there

Unfortunately doesn't do a squat for American workers. Thanks a lot Bill basturd Clinton

[doc03]

6. How did Bill Clinton have anything to do with

wages in China? If you are referring to NAFTA that doesn't hold water either that stands for North American Free Trade Agreement last I checked China wasn't in North America in addition to that NAFTA was passed on with a majority of Republican votes.

[upi402]

8. Both Clinton and Gore pushed both NAFTA and GATT

Throw Hillary onto that dogpile too. She liked that crap even more than her seat on the board of WalMart.

We should be allowed to vote for a non-corporatist here in the land of the free.
:popcorn:
:shrug:

:boring:

[upi402]

7. Clinton made me compete with a guy making $35 a week

Best Republican ever. Thanks for the SHAFTA ya GATT bastid!

[guardian]

11. Don't worry...

we'll get 13% unemployment as a consolation prize