Visualizing Global Labor Cost Disparities
In light of recent developments at FoxConn and elsewhere, some pundits have started fretting that labor costs around the world may be rising, further adding to an inflation-deflation schism between the developing and the developed world. However, as the following simplified chart from fixr.com demonstrates, there is very little to be afraid of in the foreseeable future. None of the BRICs is in any danger of catching up with the US in labor costs any time soon. Although, if deflationary pressures in the US persist, coupled with loose monetary and fiscal policy in the developed world, who knows...
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