FaujHistorian
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EXACTLY. couldn't have said it better myself.
Though I have to say, Change is coming.
There will come a day when Chinese people realize that making factory wages for a pittance is not the best way to make money.
There will come a day when Americans wake up and find that they no longer have the skills nor the expertise to make the stuff they once made.
There will come a day when Chinese companies realize that all they need is Branding, and that doing OEM work without branding is for suckers.
and that day, my friends, is coming sooner than you think.
Increase in hourly rates for labor is gradual and very normal.
Once the labor rates in China go up, it will be difficult to find that large of a skilled population anywhere. Perhaps Indians will undercut a little bit, but not much.
As a result, imports for Americans will become more expensive.
However this will not be the end.
Here is an example.
Indian call centers were really inexpensive in the beginning, so most of the American companies outsourced their call centers to India and Philippines.
However the trend is slowly reversing because poor states within USA are competitive with Indian call centers and in some cases better if you consider the customer satisfaction.
I respectfully disagree that Americans are losing skills.
they have a large educated population, that can be trained and retrained. Couple this with huge number top universities, innovation and industrial development, and you will see that America will be at the leading edge for a long time to come.
However this is no snub to the hardworking Chinese.
I think they will have the place they deserve among the top nations of the world.
Lesson for Pakistanis. Learn from Chinese. Work like Chinese, and Serve the world like Chinese and Pakistan too will become developed country.
peace.