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Where China Goes To Outsource Its Own Soaring Labor Costs

Tyler Durden's picture




 

30 years ago, the great outsourcing wave took millions of US low-skilled jobs and planted them right in the heart of China, which was about to undergo the fastest industrialization-commercialization-financialization experiment in history. $26 trillion in bank assets later, the world's biggest housing bubble, and a teetering financial system that every day depends on Beijing making the correct central-planning decision (of kicking the can one more day, of course) or else the biggest financial collapse in history will take place, all lubricated by years of inflation in everything and most certainly wages, and suddenly outsourcing jobs in China is not all that attractive.  In fact, it has gotten so bad that China itself is now forced to outsource its own labor to cheaper offshore markets. Such as this one.

Ethiopian workers strolling through the parking lot of Huajian Shoes’ factory outside Addis Ababa last month chose the wrong day to leave their shirts untucked. Company President Zhang Huarong, just arrived on a visit from China, spotted them through the window, sprang up and ran outside. The former People’s Liberation Army soldier harangued them loudly in Chinese, tugging at one man’s aqua polo shirt and forcing another’s shirt into his pants. Nonplussed, the workers stood silently until the eruption subsided.

 

Shaping up a handful of employees is one small part of Zhang’s quest to profit from Huajian’s factory wages of about $40 a month -– less than 10 percent the level in China.

 

“Ethiopia is exactly like China 30 years ago,” said Zhang, 55, who quit the military in 1982 to make shoes from his home in Jiangxi province with three sewing machines and now supplies such brands as Nine West and Guess?. “The poor transportation infrastructure, lots of jobless people.”

Reading the linked Bloomberg article, it becomes quite clear that it is not at all surprising that China has picked Ethiopia as its place to outsource labor: while 30 years ago the Chinese leveraged dragon was only just starting to stir, then-Marxist Ethiopia which back was considered one of the poorest countries in Africa if not the world, was in the midst of a great famine. And while things in China have changed drastically since the 1980s, in Ethopia, and most other African countries, time has stood still, at least when it comes to wages. Which means that having effectively colonized Africa in the past 4 years, as we showed in 2012 with "The Beijing Conference": See How China Quietly Took Over Africa, while the west was busy kicking its own can, bailing each other out and pretending its economy is solvent, China was busy setting up shop across all African nations with plans to do just what Zhang does now: hire an ultra cheap labor force now that China itself is becoming uncompetitive in the global labor landscape.

A combination of cheap labor and electricity and a government striving to attract foreign investment makes Ethiopia more attractive than many other African nations, said Deborah Brautigam, author of “The Dragon’s Gift: The Real Story of China in Africa” and a professor of international development and comparative politics at Johns Hopkins University’s School of Advanced International Studies in Washington.

 

“They are trying to establish conditions for transformation,” Brautigam said in a telephone interview. “It could become the China of Africa.”

 

Huajian’s 3,500 workers in Ethiopia produced 2 million pairs of shoes last year. Located in one of the country’s first government-supported industrial zones, the factory began operating in January 2012, only three months after Zhang decided to invest. It became profitable in its first year and now earns $100,000 to $200,000 a month, he said, calling it an insufficient return that will rise as workers become better trained.

 

Under bright fluorescent lights, amid the drone of machines, workers cut, glue, stitch and sew Marc Fisher brown leather boots bound for the U.S. Meanwhile, supervisors monitor quotas on whiteboards, giving small cash rewards to winning teams and criticism to those falling short.

 

Huajian Chairman Zhang Huarong said, “Ethiopia is exactly like China 30 years ago.”

 

China, Africa and global retailers all have stakes in whether Ethiopia and such countries as Tanzania, Rwanda and Senegal become viable production bases for labor-intensive products. Promoting trade, boosting employment and spurring investment are among the topics that will be discussed on August 4-6 at the first White House U.S.-Africa Leaders Summit in Washington.

China may not have hit its second, urban Lewis point yet, but if Ethopia is any indication, labor conditions for the country that needs to create tens of millions of new jobs every year to preserve social stability may get complicated very fast.

African nations have a compelling opportunity to seize a share of the about 80 million jobs that China will export as its manufacturers lose competitiveness, according to Justin Lin, a former World Bank chief economist who now is a professor of economics at Peking University.

Here, instead of alienating the potential labor pool, China is keeping its options very open, and in fact welcomes the ability to outsource to a cheaper location: "Chinese Premier Li Keqiang and Ethiopian Prime Minister Hailemariam Desalegn, who met on May 4, backed the move of Chinese industries to Ethiopia. China is “supporting Ethiopia’s great vision to become Africa’s manufacturing powerhouse,” Hailemariam told reporters at a joint press conference in Addis Ababa."

At the very bottom of it all: surging labor prices. Yes, in China.

Weaker consumer spending in the U.S. and Europe after the financial crisis prompted global retailers to hasten their search for lower-cost producers, said Helen Hai, head of China Africa Consulting Ltd. in Addis Ababa. She ran Huajian’s Ethiopia factory until July of last year.

 

While China’s inland regions offered manufacturers a cheaper alternative to the export-linked coastal areas, rising costs and a limited pool of available workers now are undermining that appeal.

 

Average factory pay in Henan, about 800 kilometers from the coast, rose 103 percent in the five years ended in September and 80 percent in Chongqing, 1,700 kilometers up the Yangtze River. In the same period, salaries rose 82.5 percent in Guangdong, where Huajian has its base in the city of Dongguan.

 

Cost inflation in countries including China has prompted Hennes & Mauritz AB, Europe’s second-biggest clothing retailer, to work with three suppliers in Ethiopia. The nation has “great potential” for production, H&M head of sustainability Helma Helmersson said in an April interview.

 

China’s average manufacturing wage is 3,469 yuan ($560) per month. Pay at the Huajian factory ranges from the basic after-tax minimum of $30 a month to about twice that for supervisors. By contrast, average manufacturing wages in South Africa, Africa’s biggest manufacturer, are about $1,200.

China is not the only one to have discovered what may be the world's last outsourcing diamond in the rough.

Signs of Ethiopia’s allure include factories outside Addis Ababa set up by leather goods maker Pittards Plc of the U.K. and Turkish textile manufacturer Ayka Tekstil. Foreign direct investment in the nation surged almost 250 percent to $953 million last year from the year before, according to estimates by the United Nations Conference on Trade and Development.

But only China brings with it a certain "flare" to the work ethic it is trying to inculcate within the local population:

Zhang spends about half his time in Ethiopia, he says. During the visit last month, he spoke to about 200 uniformed Huajian supervisors, a mix of Ethiopians and Chinese, gathered in the parking lot. A giant plasma screen mirrored the crowd as Zhang hurried onto the stage.  He berated those assembled for a lack of efficiency, then praised them for their loyalty to Huajian, his words translated into Amharic and Oromo. He ordered them to march on the spot, to turn left and to turn right, all chanting together in Chinese.

 

“One two one,” they chanted. “One two three four,” as they marched in step. Slogans followed: “Unite as one.” “Improvement together.” “Civilized and efficient.”

 

They sang the “Song of Huajian,” whose words urged “We Huajian people” to bravely move forward, to hold the banner of Huajian high and to “keep our business forever.” Chinese supervisors led the song, their Ethiopian colleagues stumbling over some words and struggling to keep up.

 

Later, Zhang explained that he can’t be as tough on the staff as he would like. “Here the management cannot be too strong as there will be a problem with the culture,” he said via a translator. “In China you can be strong, but not here. The conditions here mean we have to show respect. On one hand we have to have strict requirements; on the other hand we have to take care of them. They have their own dignity. They may be poor but we have to respect their dignity.”

What does a typical worker's day look like:

Taddelech Teshome, 24, said her day starts at 7:20 a.m. after her Chinese employers provide employees with a breakfast of bread and tea. When her morning shift ferrying shoes from the factory floor to the warehouse is over, she gets fed the national staple, sour bread, for lunch. After work, a Huajian bus takes her to nearby Debre Zeit, a town where she rents a room with her sister for $18 a month.

 

She came to Huajian just over a year ago from her home 165 kilometers away in Arsi region after her sister started at the factory.

 

The work is good because I pay my rent and I can look after myself,” she said, wearing an aqua Huajian polo shirt. “It’s transformed my life.” Taddelech said she wants to work for two more years at the plant and become a supervisor. She eventually aspires to build her own house.

 

With inflation at 8 percent -- down from 40 percent in July 2011 -– saving cash is tough. Mohammed al-Jaber, who earns $30 a month for gluing shoe linings eight hours a day six days a week, said he can add to his pay with perfect attendance each month -- a $7.50 bonus -- and overtime. Any extra gets sent home to his family in the Arsi region.

As for higher level arrangements, the two countries are certain to get along: One appeal for China: Ethiopia follows a similar tightly controlled, state-heavy economic model. Opposition parties won only one out of 547 parliamentary seats at the last election in 2010. Ties are strong between the Communist Party of China and the Ethiopian Peoples’ Revolutionary Democratic Front: On July 10, Central Committee Political Bureau member Guo Jinlong visited Ethiopia and met with Prime Minister Hailemariam. The two pledged to enhance cooperation, the official Xinhua news agency said.

Meanwhile, China is doing what the west was so efficient in its heyday: providing all the loans to fund this international expansion:

Ethiopia’s heavy public investment in infrastructure using credit from Chinese state banks promises to relieve some key bottlenecks. The Export-Import Bank of China is funding a railway from Addis Ababa to landlocked Ethiopia’s main port in neighboring Djibouti. Ethiopia lost its coastline when Eritrea became independent in 1993.

The Chinese and Ethiopian governments also are investing in hydroelectric plants -- including what will be Africa’s largest, the domestically funded Grand Ethiopian Renaissance Dam on the Blue Nile -- that should increase Ethiopia’s power supply five-fold by 2020.

 

That may help overcome obstacles including the supply of electricity and cumbersome customs and tax procedures. In May, a World Bank team went to visit a textile factory in the Eastern Industrial Zone, where the Huajian plant is located, and found they are faced with daily power outages lasting for hours, Ethiopia country director Guang Zhe Chen said.

Perhaps the biggest shocker here is that while China was colonizing Africa, first with infrastructure, then with debt, and now with local labor, neither JPM nor Goldman did the same. Perhaps the US truly is losing it to China which managed in a decade to take over the continent without firing a single shot (the US does have a few drone bases in central Africa but they won't last). And even if the "west" tries to steal Africa from under China's nose, it is far too late  now.

Rising Chinese wages that Zhang calls “an inevitable trend” are pushing Huajian to try to increase its workforce in Ethiopia to as many as 50,000 within eight years.  A model of a planned new plant at the edge of Addis Ababa is displayed at the factory. The 126-hectare (341-acre) complex, partly financed by more than $300 million from Huajian, will include apartments for workers, a “forest resort” district and a technical university.

 

At the gathering in the parking lot, after supervisors sang Huajian’s company song, Zhang dismissed the Ethiopian contingent. Then he continued haranguing the Chinese managers. To make his point that structure was needed to keep employees in focus, he thrust a broomstick toward them repeatedly, then toward the remote camera that was feeding to the plasma screen, the image blurring with each prod.

 

Then he left the stage, laughing and raising a triumphant fist.

 

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Thu, 07/24/2014 - 20:21 | 5001587 Shizzmoney
Shizzmoney's picture

This has been known for quite a bit, although China is still the tech sectors' numba won choice.

I'd say more than 35% of the of the textile/clothing work that started in the mid-90s has now gone to Indonesia, India, Bangladesh, and Malaysia.  And will probably be at 50%+ by the end of the decade.  Especially since the Chinese have to keep their QE4EVA program to fund their shadow banking system.

Thu, 07/24/2014 - 20:27 | 5001607 Keyser
Keyser's picture

How long before Al Sharpton and Jesse Jackson condemns this movement as racist and employing slave labor practices... May the circle be unbroken...

 

Thu, 07/24/2014 - 20:37 | 5001644 NoDebt
NoDebt's picture

Productivity per worker be damned.  Just give me the cheapest, most unskilled labor available.  

Thu, 07/24/2014 - 20:55 | 5001709 max2205
max2205's picture

I take back the idea that robots will replace us all soon.....this is shit

Thu, 07/24/2014 - 21:29 | 5001821 knukles
knukles's picture

Ebola works wonders

Thu, 07/24/2014 - 22:10 | 5001979 Stackers
Stackers's picture

Next up: Papua New Guinea Canibal Hill Tribes !!! ... gives new meaning to the term "head hunter".

Thu, 07/24/2014 - 22:36 | 5002051 FilthyPhil37
FilthyPhil37's picture

in 10 years, calling a Papau New Guinean recruiter a head hunter will be a racist term.

Fri, 07/25/2014 - 08:34 | 5002871 Save_America1st
Save_America1st's picture

soon enough they will be looking to the Banana Republic of the Divided States of 'Merika, and our new class of 100+ million illegal invaders for their cheap labor.  We will experience a "rennisance" in cheap worthless manufacturing for pennies on the dollar all across 'Merika. 

And don't forget the fucking unions.  With all these new desperate, starving, uneducated, poverty-strickin', illegal invaders will come swarms and swarms of scumbags trying to rebuiled their Socialist labor unions for everything across the board.

Massive tax exemptions for these facotories will follow from the gov-scum who will cater to them as "rebuilding" 'Merika while the very few left in the "middle" will be forced to support higher taxes and inflation before they are finally wiped out and forced to become just like the 3rd world illegal invaders...desperate to find anything to make a few pennies to live off of.  Slavery again will become the accepted norm, for there will be no other choice for the slaves, and nowhere else to go...no other way try to live. 

It will be like the movie "Hunger Games" where an elitist, pompous, ruthless, authoritarian, mentally deranged, psychopathic class will prey on the impoverished, helpless sheeple; treating them like cattle to be abused and slaughtered at their amusement.  No law...no justice...no dignity...no basic human rights. 

Once America goes down this path 100%, the rest of the world will follow.  Done deal.  No turning back.  The Dark Ages all over again for hundreds of years or forever until this planet finally destroys itself. 

OR...

We wake the fuck up...stand up....and wipe these mother fuckers in D.C. out before they complete their destruction of AMERICA.

If not...

GAME OVER.  Wash, rinse, repeat. 

Tick tock, bitchez...it's not too far over the horizon at this point. 

Fri, 07/25/2014 - 11:10 | 5003514 Herd Redirectio...
Herd Redirection Committee's picture

Here I am wondering where all the jobs are, no wonder I couldn't find them!  They are all over in Ethiopia!

 

Fri, 07/25/2014 - 00:57 | 5002334 NoPension
NoPension's picture

How many Ethiopians can fit in a phone booth?

What's a phone booth?

Fri, 07/25/2014 - 03:27 | 5002503 Lost My Shorts
Lost My Shorts's picture

Ya, what is a phone booth??  No wait, I'll google it on my iphone.

Fri, 07/25/2014 - 05:59 | 5002634 old naughty
old naughty's picture

"...the workers stood silently until the eruption subsided. "

Outsource its own soaring labour costs, perhaps...

b, b, but, its in the tradition of perpectuating slavery, by turning the "working class" to slav-ples.

They get that from somewhere else, not from the workers-PLA, don't you think?

Fri, 07/25/2014 - 07:52 | 5002786 wallstreetapost...
wallstreetaposteriori's picture

I see slavery is back in favor.

Fri, 07/25/2014 - 10:02 | 5003218 detached.amusement
detached.amusement's picture

actually saw one in nyc last weekend....I was like wow, a fkn phone booth!  *points*  lol..

Thu, 07/24/2014 - 20:58 | 5001717 Four chan
Four chan's picture

we shipped our wage inflation to the slave nation of china decades ago, its never coming back.

the slave nation china will have to ship their wage inflation to some other slave nation like

the low iq countries, vietnam or maybe mexico or africa. the main take away from this is:

the only thing the fed looks at is wage inflation in its grand gamble "printoramma" in light of 

the previous fact of wage inflation is never coming back it shows the fed are fools who will only 

succeed in destroying the dollar..but maybe that has been the rothschild plan for we the people all along?

Thu, 07/24/2014 - 21:37 | 5001860 TMLutas
TMLutas's picture

You're at least six years behind the times. They've been outsourcing to the US since at least 2008

 

http://www.cbsnews.com/news/the-flip-side-china-outsourcing-to-the-us/

 

Ni Hao y'all

Fri, 07/25/2014 - 00:24 | 5002275 Zeta Reticuli
Zeta Reticuli's picture

Your list of "low IQ countries' should include America. Even a poor peasant child in rural China is better educated than the average American.

Fri, 07/25/2014 - 01:59 | 5002399 Four chan
Four chan's picture

china does have a higher iq than the states i didnt say otherwise.

Fri, 07/25/2014 - 04:51 | 5002572 Urban Redneck
Urban Redneck's picture

Just give me relatively steady wages and I'm happy. This running around the world to find the cheapest labor is 1) insane and 2) ONLY possible with cheap bank money- not only the CapEx incurred when relocating factories and management outrageously expensive, the added costs of sourcing and transporting inputs and production eat into margins. Without cheap money from the banks this insanity wouldn't be possible.

Fri, 07/25/2014 - 06:30 | 5002658 Cheduba
Cheduba's picture

"ONLY possible with cheap bank money"

Exactly!  We as human beings think linearly and only see that current trends will continue, but with decentralized systems like P2P lending, 3D printing for manufacturing, and farmers markets, localized systems will return and the free market will take care of our jobs crisis when this whole shitbag Federal Reserve crony fascist system fails.

Fri, 07/25/2014 - 07:27 | 5002732 rsnoble
rsnoble's picture

Best possible outcome.  Problem is what the criminals will do between now and that point and will your scenario even be possible after they are done fucking us over 10,000x?

They'll go to war, drop bombs, run around screaming like little kids, have gazillions of us locked up etc trying to avoid what you have described.  

Fri, 07/25/2014 - 11:18 | 5003544 Herd Redirectio...
Herd Redirection Committee's picture

Don't forget the complicity of local governments.

You think China is paying any corporate tax over there?  Of course not.  Thats why the factories are always in 'special export zones', so the locals don't get any ideas.

So once you come to the country, you get 7 years taz free (for example).  So what happens Year 7?  The companies shut down.  New ones may or may not take their place, depending on the level of blackmail they can force the local gov't to accept.

Nations are no longer sovereign entities.

Fri, 07/25/2014 - 05:01 | 5002581 giggler321
giggler321's picture

A more common problem for Africa in general is the worker mentality.  It's typical to pay a guy for labor on Friday and then not have him turn up on Monday for work; only when he has spent the cash does he return.  Perhaps that will change with industrialisation of Africa.

Fri, 07/25/2014 - 07:29 | 5002734 rsnoble
rsnoble's picture

That's everywhere. Plenty of people in the US do that.  As far as i'm concerned fuck most employers.  Try as they may they'll never break the human spirit.  Not with today's technology anyway lol.

Fri, 07/25/2014 - 07:51 | 5002780 rbg81
rbg81's picture

Somehow, I really, really doubt that Ethopia is like China 30 years ago.  If the Chinese think they can make Africa work, let 'em have at it.   Looking forward, I think robots are the way to go--and they're just going to keep getting better.

Fri, 07/25/2014 - 12:05 | 5003776 AnAnonymous
AnAnonymous's picture

We need to get rid of that mentality. Matching your level of consumption to the environmental support? No savings? We need people who understand the American concept of producing more than consuming.
If we cant get rid of the mentality, then we must get rid of the people with that mentality.

Signed: an American.

Fri, 07/25/2014 - 10:46 | 5003423 orez65
orez65's picture

"Just give me the cheapest, most unskilled labor available"

No.

There is a big difference between the "cost of wages" and the "cost of labor (cost of wages plus supporting machinery)"

In order to compete with the low wage countries in manufacturing you have to bring your "cost of labor" lower than "their cost of labor".

You do this by augmenting the higher wage workers with machinery.

For example, if you are framing a home with one skilled worker using a nail gun, your cost of labor will be lower than the cost of labor of many workers with hammers.

Also, getting rid of as much government related overhead as possible helps a lot.

Thu, 07/24/2014 - 21:49 | 5001893 Juno Rock
Juno Rock's picture

@Shizz  They who live in a glass QE house should not throw stones! lol

Fri, 07/25/2014 - 11:18 | 5003549 robertsgt40
robertsgt40's picture

Maybe in another 30yrs Ethiopia will outsource some of their manufacturing to the US

Thu, 07/24/2014 - 20:22 | 5001592 darteaus
darteaus's picture

Africa - the last frontier.

Thu, 07/24/2014 - 20:30 | 5001620 astroloungers
astroloungers's picture

"Africa - the last frontier."

 

End of the road I'd say

Thu, 07/24/2014 - 20:52 | 5001697 Seasmoke
Seasmoke's picture

So that rusty fucking can is going to end in Ethiopia..

Thu, 07/24/2014 - 20:58 | 5001721 max2205
max2205's picture

Geez when the time comes Ethiopia will outsource to the USA......FUNNY HUH?

Thu, 07/24/2014 - 21:08 | 5001750 Publicus
Publicus's picture

The circle of life. Checkmate.

Fri, 07/25/2014 - 07:49 | 5002774 g speed
g speed's picture

hell I've been buying "made in the USA" boots since my first real pair I got from the Army--I don't buy any Chinese slave made footware ever. My feet treat me well because of it. I did buy a pair of Italian loafers once cause I saw a guy with a Lamborgini Muria who was wearing a pair and I thought he was cool.

Fri, 07/25/2014 - 09:47 | 5003147 conscious being
conscious being's picture

Shoes are overrated.

Fri, 07/25/2014 - 00:26 | 5002277 PT
PT's picture

Oh those lazy, greedy Chinese workers!  Just you wait, we're gonna replace all their burger flippers with fully automatic hamburger-making robots!!!!  That'll learn 'em!

And no mention that all the pay rises can not keep up with the increases in the price of real estate, which must never go down and which guarantees that a geographic area will be non-productive for many decades to come.  On the plus side, eventually the richest 64 million Chinese may be able to afford to buy one of them empty apartments and the Chinese rich will finally be able to see a return on their "investments".

Pay no attention to the little contradiction in that last paragraph!  You know it still stands.

Fri, 07/25/2014 - 11:23 | 5003573 Herd Redirectio...
Herd Redirection Committee's picture

Yeah, good point.  Just a couple years back the local gov't would be dying to sell you some vacant land, now they are well into a property bubble and only the most risk-prone of business owners would open another factory, given the real estate costs.

Fri, 07/25/2014 - 01:53 | 5002391 A Nanny Moose
A Nanny Moose's picture

All things are cyclical. Though in the case of sub-Saharan Africa, I would make an exception. That fucking shithole has been shit on for hundreds of years.

Thu, 07/24/2014 - 21:40 | 5001867 DirkDiggler11
DirkDiggler11's picture

Yep. Travel all that way and what do you end up with at the end of the trip?
A nasty Ebola virus for your trouble. Nothing like bleeding out of your ass, mouth, ears, nose, and even out the end of your dick by the end of your shift in the shoe factory. Go China !

If the vampire squid GS set this one out at a turn to make some "easy money" in Africa, that should tell you something.

Fri, 07/25/2014 - 01:03 | 5002343 NoPension
NoPension's picture

Been there, done that.

Europe colonized and built up ( also pillaged, just like the chinks) most of Africa in 19th and early 20th century.
And as soon as the " natives" won independence , most of Africa went Detroit.
Say it like a Frenchy, day-twa.

South Africa was doing ok, until they too,succumbed.

Go ahead China, build infrastructure. Wanna bet how this turns out?

Fri, 07/25/2014 - 07:47 | 5002770 AnAnonymous
AnAnonymous's picture

The infrastructure was designed and built to support the loot.

The perception that things were better before only comes because 'americans' feel they are losing something.

'Americans' are extorters and as such, are not interested in the condition of the extorted.

Fri, 07/25/2014 - 11:45 | 5003671 Herd Redirectio...
Herd Redirection Committee's picture

Things indeed WERE better in Rhodesia and South Africa than they are currently.  Why do you think Zimbabwe's population was increasing like crazy through the 70s and early 80s (until MAOgabe's 'policies' took hold)

Fri, 07/25/2014 - 11:53 | 5003715 AnAnonymous
AnAnonymous's picture

Of course they were better. For the extorters. Losing a stock of extorted is never good news for the extorter.

If 'americans' were interested in the fate of the extorted, why should they run a business based on extortion?

Fri, 07/25/2014 - 12:04 | 5003774 Che Guevara is Dead
Che Guevara is Dead's picture

Africa will break Chinese hearts and shatter Chinese dreams just as it has those of every empire, colonial power, and do-good NGO. It is a siren that seduces everyone who comes too close, only to break their hearts and drain their wallets. That's the reason our distant hominid ancestors GTFO of Africa. They realized no matter what they did, no matter how hard they tried, the place would never stop sucking their souls dry.

Thu, 07/24/2014 - 20:26 | 5001602 Tulpa
Tulpa's picture

Sorry, I count as a good thing desperately poor people getting a chance to live a better life (even if that life looks horrid to us, it obviously is better than what they had before).

Won't satisfy the "humanitarian" leftists who think it should always be the 1950s where Americans get $20/hr plus a fat pension for turning a bolt all day and the rest of the world starves, but I'm not concerned with those miscreants.

Thu, 07/24/2014 - 20:46 | 5001677 Freddie
Freddie's picture

If they can get themselves to Michigan - Obama, the Democrat Party and UAW will get them jobs at GM-UAW or Chrysler-UAW.   On their lunch breaks - they can go to the Quickie Mart to get malt liquor and go to the local park to smoke crack/meth or chew chat.  

They can drive their new GM-UAW or Chrysler-Fiat-UAW pile of shit to the Quickie Mart.

Thu, 07/24/2014 - 21:01 | 5001732 Four chan
Four chan's picture

if you're not related you wont get a job with the big three. i live here i know.

Fri, 07/25/2014 - 00:36 | 5002297 PT
PT's picture

The truth has been out a fucking long time now:

http://search.dilbert.com/comic/Nikita

 

Fri, 07/25/2014 - 12:01 | 5003765 Herd Redirectio...
Herd Redirection Committee's picture

"Under capitalism, any one can get rich."

"Really?  How?"

"The most popular methods are crime and inheritance."

"What do you recommend?"

"Let your parents commit the crime, you get the inheritance."

Fri, 07/25/2014 - 01:55 | 5002392 A Nanny Moose
A Nanny Moose's picture

Nepotism > Unions > Production.

Thu, 07/24/2014 - 21:10 | 5001758 Berspankme
Berspankme's picture

Thats what the slave owners used to tell the slaves in this country. FORWARD

Thu, 07/24/2014 - 21:30 | 5001832 knukles
knukles's picture

LOL  Sick Fuck

Thu, 07/24/2014 - 22:32 | 5002034 Tulpa
Tulpa's picture

If you don't know the difference between slavery and voluntary labor there's not much hope for you.  The Left would just let the Ethiopians try to scratch a living off rocks in between UN waste-grain shipments rather than let them do a job an American wouldn't want to.  Not me.

Fri, 07/25/2014 - 00:38 | 5002301 PT
PT's picture

It's all fair mummy. My three year old little brother chose to give me his icecream!

Fri, 07/25/2014 - 01:09 | 5002352 NoPension
NoPension's picture

Leftys think working at Wal-mart or Micky D is slavery. Or anyplace that doesn't at least pay over $20 an hour with full benefits including medical and a pension plan. ( kinda like a .gov job, for half the pay)

Thu, 07/24/2014 - 21:48 | 5001818 Bananamerican
Bananamerican's picture

"I count as a good thing desperately poor people getting a chance to live a better life (even if that life looks horrid to us).... Won't satisfy the humanitarian Leftists who think it should always be the 1950's...."

“One two one,” they chanted. “One two three four,” as they marched in step. Slogans followed: “Unite as one.” “Improvement together.” “Civilized and efficient.”

The cognitive dissonance is strong in this one....

By the way Tulpa eagle dude...whose bolt were you turning all day for a dollar?

Thu, 07/24/2014 - 20:27 | 5001606 power_shift
power_shift's picture

I can't wait until the Chinese outsource to the good ol USSA. The China Men in bars around the country will talk about how those god damn 'round eyes' are stealing all the work.

Thu, 07/24/2014 - 20:30 | 5001622 Keyser
Keyser's picture

The Chinese are already buying up old factories in the rust belt...  Anyone remember the movie 'Gung Ho'...

 

Thu, 07/24/2014 - 20:33 | 5001636 Buster Cherry
Buster Cherry's picture

Just wait till their daughters start fucking them....

Thu, 07/24/2014 - 21:30 | 5001835 Son of Loki
Son of Loki's picture

You could say it's the Chinese but you could also say it's companies like Merck that built a huge drug research center  I think it's outside Shanghai. Kind of a reverse brain drain. Two of my friends left pretty good biochemistry jobs here to go there for a big pay raise and moar benefits.

As the man above says... 'life's a big circle'...these two guys grew up in China and worked/struggled/studied their whole life with one goal --- to get out!

 

Here they are back where they started [although they were not from Shanghia but I think Beljing] and from what they tell me pretty happy now.

 

Man...how life works...it's kinda mysterious, eh?

Thu, 07/24/2014 - 20:28 | 5001610 Tulpa
Tulpa's picture

And the PRC doesn't have the military power to subjugate countries thousands of miles away if they renounce their debt.  They can barely bully their weak neighbors in SE Asia without getting a rake to the face.

Thu, 07/24/2014 - 20:34 | 5001637 Elvis the Pelvis
Elvis the Pelvis's picture

Mark my words.  China will be the death of us all.  Bitchez.

Thu, 07/24/2014 - 21:21 | 5001785 Iriestx
Iriestx's picture

Bring it.

Fri, 07/25/2014 - 03:22 | 5002496 dvfco
dvfco's picture

I'll mark your words on China, but I'll put my money on Israel being the death of us all.

I just don't know what I'll win when I'm right.

Oh, yes, the hatred of every citizen of every other country on earth, including Israel.

Thu, 07/24/2014 - 20:59 | 5001722 Freddie
Freddie's picture

+1

China (Sino)-Viet was 1979.  China got their arses kicked.   This was the Vietnamese militia too.  The Vietnamese army was in Cambodia taking out Pol Pot.

https://www.youtube.com/watch?v=XEy1vyiP8Gw

Americans are suckers who send their kids off to die in bankers/NWO wars.  The US military has no clue about The Constitution and defending it.

Thu, 07/24/2014 - 21:42 | 5001876 Postal
Postal's picture

The US military has no clue about The Constitution and defending it.

Neither do US Citizens--which is why we're in this mess.

Thu, 07/24/2014 - 22:08 | 5001967 WhyWait
WhyWait's picture

Chicken n Egg.  Dropping Civics curricula goes along with dropping shop classes, cooking classes, and pretty much anything else that smacks of teaching thinking skills.  The Constitution is not magic, not the voice of God (although some would disagree.)  But it is a tool to reason with about fundamental issues of public policy and law. 

If the schools won't teach our children to think we need to do it ourselves with the children in our lives.

Fri, 07/25/2014 - 09:58 | 5003199 conscious being
conscious being's picture

Postal - leading italics, don't do that.  It disables the vote script.  See how you're getting zero votes? I can' t upvote your comment, so consider this a +1.

Thu, 07/24/2014 - 22:40 | 5002057 Tulpa
Tulpa's picture

It's fashionable to talk about how the US military is in decline since it hasn't won a war since WW2 "against a major power" (so as to exclude trouncing Saddam's million-man army in 1991)... but we're supposed to believe China is badass when they haven't won a war against any country except Tibet since the friggin Middle Ages.

Thu, 07/24/2014 - 23:22 | 5002156 garypaul
garypaul's picture

Korean war? They stalemated the U.S.A.

Thu, 07/24/2014 - 23:32 | 5002170 IndyPat
IndyPat's picture

Only cause that faggot Truman pulled back MacArthur's leash.

Sat, 07/26/2014 - 05:19 | 5006692 IronForge
IronForge's picture

Almost drove them off the Peninsula.  It it weren't for Japan's availability, All of Korea would have belonged to the CHN and North Korea.

"All your Base are belong to Us"...

Would CHN allowed the North to remain Independent?  Probably not - especially after throwing so many Troops into the War.

What's funny about it?  It can happen again; and THERE WON'T BE ANOTHER OPPORTUNITY FOR AN INCHON LANDING THIS TIME AROUND. 

CHN has a Fleet of Ships, Submarines, Bombers, and dozens of TBMs.  I don't know enough about PRK's Lineup; but I'm certain they'll keep the Ground War very interesting.

Fri, 07/25/2014 - 06:15 | 5002648 effendi
effendi's picture

Tulpa, China beat India in the Sino-Indian War in late 1962. India had (and has) the most powerful military in Asia outside of China.

Saddams "million man army" was no more potent than Comical Ali or the Italians in WW2, all bluff but no strength or stomach for a fight and quick to surrender.

Fri, 07/25/2014 - 02:18 | 5002438 nathan1234
nathan1234's picture

It's not the "US" military

The IDF are "US"

Just ask Rahm all about it

 

 

Thu, 07/24/2014 - 20:28 | 5001611 ali-ali-al-qomfri
ali-ali-al-qomfri's picture

Detroit was the runner up though, better luck next time.

Thu, 07/24/2014 - 20:30 | 5001623 Buster Cherry
Buster Cherry's picture

Look Who's Coming to Dinner....

Thu, 07/24/2014 - 20:33 | 5001632 dirtyfiles
dirtyfiles's picture

And after the "American experiment" finally collapse it all come back in here one day

Thu, 07/24/2014 - 20:41 | 5001660 SonoftheAR
SonoftheAR's picture

New slaves, same as the old slaves.

Thu, 07/24/2014 - 20:42 | 5001662 Rootin' for Putin
Rootin' for Putin's picture

Damn Chinese want a Whole bowl of rice per day and only 12 hour shifts.
I can get 18 hour shifts for one banana over there.

Thu, 07/24/2014 - 21:32 | 5001841 knukles
knukles's picture

If you offered them a western luxury... a watermelon... you'd get 36 hours straight, relieving themselves at their work station, no less...
Pass the finger food...

Thu, 07/24/2014 - 21:45 | 5001846 Bananamerican
Bananamerican's picture

Yea, and one banana's better than no bananas LIBERALZ!
Suck on THAT YOONYUNZ!!

Actually' you know what's funny? The Lubz and the "genius of broad shouldered capitalism" Libertarian//Righties say the same thing.

"Let them eat bananas"

Sigh

Thu, 07/24/2014 - 21:51 | 5001900 RaceToTheBottom
RaceToTheBottom's picture

Start building sky scrapers in the slums of Africa.

 

Thu, 07/24/2014 - 20:47 | 5001681 Wahooo
Wahooo's picture

Our companies close the most productive, highest quality manufacturing plants here in the US and ship all the work to low-cost countries. And then we can't get the parts and products we need in working condition. WTF.

Thu, 07/24/2014 - 21:43 | 5001879 Postal
Postal's picture

It's because we have a shortage of skilled labor and need more guest workers.

/sarc

Thu, 07/24/2014 - 22:46 | 5002074 Tulpa
Tulpa's picture

That's a myth.  US manufacturing output is triple now what it was in 1970.  Automation and robotics has "taken" more US manufacturing jobs than offshoring by far.

Thu, 07/24/2014 - 23:51 | 5002213 BKbroiler
BKbroiler's picture

that's interesting.  source, links?  genuinely curious...

Fri, 07/25/2014 - 07:16 | 5002454 BorisTheBlade
BorisTheBlade's picture

Perhaps this one: http://online.wsj.com/news/articles/SB1000142405274870365210457612235327...

In dollar terms, the output has indeed tripled. In real terms, not so much. What's telling is this one: http://trade.gov/manufactureamerica/build/groups/public/@tg_mana/documen...

Only growth is aerospace and computer stuff. Aerospace is very heavily defence-related and usually expensive, hence understandable. However, all the basic manufacturing products, consumer-related are mostly produced somewhere else. That's why despite growth in monetary terms you can hardly buy consumer products made in the US.

Sat, 07/26/2014 - 05:23 | 5006694 IronForge
IronForge's picture

Not anymore, Boris.

The IT hardware Sectors' going bye-bye; and Defense?  Well, that Sector is being outsourced in a different and highly illogical manner.

Fri, 07/25/2014 - 01:16 | 5002363 NoPension
NoPension's picture

How come I can't buy something other than a Snap-On wrench for $65 , that says " Made in the USA"?

Thu, 07/24/2014 - 20:48 | 5001682 Seasmoke
Seasmoke's picture

So only 30 more years until we are at the bottom and they send it here.

Thu, 07/24/2014 - 20:50 | 5001694 world_debt_slave
world_debt_slave's picture

well, with all the cheap labour pouring across the U.S. border, full circle.

Thu, 07/24/2014 - 21:36 | 5001853 Bananamerican
Bananamerican's picture

"One ring to rule them all and in the darkness bind them"

Thu, 07/24/2014 - 20:59 | 5001726 IndyPat
IndyPat's picture

"Chinese" being "Chinese"....
Blobbing up and exploiting the African Negro and resources.
Alas, alas and three times alas.
We see "Chinese" citizen citizenism on display centuries late.
Being exactly par.

Fri, 07/25/2014 - 07:52 | 5002783 AnAnonymous
AnAnonymous's picture

China blobbed up centuries ago and on different terms than 'americans'.

Fri, 07/25/2014 - 11:40 | 5003649 TheFourthStooge-ing
TheFourthStooge-ing's picture

Ah, ah, mix mashed potatoes. Lumping up, blobbing up, somehow Chineses and 'americans' are differently the same.

Just another slice of the fabled past pie. Bear with it.

Fri, 07/25/2014 - 11:56 | 5003729 AnAnonymous
AnAnonymous's picture

The Chinese, when they blobbed up, were definitively not the same as 'americans'.

But, hey, the great homogeneization is part of the 'american' ideal. 'Americans' want to perceive everyone as themselves when it comes to certain stuff.
'Americanism' is human nature, as 'americans' say.

Thu, 07/24/2014 - 21:05 | 5001738 Yes_Questions
Yes_Questions's picture

 

 

is the wage low enough to qualify these workers for food and health assistance from the state?

 

maybe a recently disencumbered Wal Mart CEO can help if not..

Thu, 07/24/2014 - 21:24 | 5001799 Spastica Rex
Spastica Rex's picture

We need another planet full of smelly, brown-ish aliens to work for us - for pennies per hour. We can planet-drop containers of Big Macs for them to sweeten the deal.

Thu, 07/24/2014 - 23:36 | 5002182 IndyPat
IndyPat's picture

Hopefully, the same aliens piss gasoline.

Thu, 07/24/2014 - 21:24 | 5001802 luckylogger
luckylogger's picture

There is a good reason that Goldy is not interested---- no private property rights...
Somebody is going to get fuked in this deal, probably both the chinease and the upwardly mobile rich workers making 39 buks a month.
Very corrupt area, if anybody can extort a nickle they will and they have the AK's to do it..............
Good luck guys but I would never open up shop over there......

Thu, 07/24/2014 - 21:24 | 5001803 luckylogger
luckylogger's picture

There is a good reason that Goldy is not interested---- no private property rights...
Somebody is going to get fuked in this deal, probably both the chinease and the upwardly mobile rich workers making 39 buks a month.
Very corrupt area, if anybody can extort a nickle they will and they have the AK's to do it..............
Good luck guys but I would never open up shop over there......

Thu, 07/24/2014 - 21:25 | 5001805 Let them eat iPads
Let them eat iPads's picture

I'd rather die than work for a Chinaman.

Thu, 07/24/2014 - 21:36 | 5001856 magnetosphere
magnetosphere's picture

it was good knowing you

Fri, 07/25/2014 - 01:17 | 5002366 NoPension
NoPension's picture

Gave you both one.

Fri, 07/25/2014 - 01:55 | 5002393 Salsipuedes
Salsipuedes's picture

Noodles fo' you mista! No PENSION!

Fri, 07/25/2014 - 02:11 | 5002428 nathan1234
nathan1234's picture

Maybe JPM or Goldman is a better place for you to work?

Maybe a nailgun awaits your "suicide"

And of course maybe work for the Obam administration and Lerner's IRS ! - where you would be living a life of lies !

 

Thu, 07/24/2014 - 21:29 | 5001814 Kreditanstalt
Kreditanstalt's picture

Problem is, as a westerner I'm supposed to be the end customer - and I can't AFFORD to buy Nike or Guess! running shoes...

All this production is destined for guess where: North America, Europe, Japan, etc.

Without fractional reserve banking fraud, central banking, fiat currencies and government spending - and the resulting DEBT - there would be no one to buy this stuff at anywhere near the prices they expect...

Thu, 07/24/2014 - 22:50 | 5002080 Wild Theories
Wild Theories's picture

...and the reason we can't afford those things has nothing to do with how cheaply they are actually produced.

Everyone's so busy hating on bankers people tend to forget how much big corporations are fleecing both ends of the chain, their laborers and their customers.

Fri, 07/25/2014 - 00:00 | 5002220 Kreditanstalt
Kreditanstalt's picture

Er...how are "big corporations fleecing both ends"??  Seems to me they're just benefitting from a surplus of cheap labour and trying to sell for the maximum profit possible.  

But you don't have to buy.  This has nothing to do with "corporations", "99% vs. 1%", "rich" vs. "poor" or "the evils of capitalism".  Or Piketty socialism.  It's government.

The ONLY reason we North Americans are the ultimate market is: CHEAP CREDIT.  To continue buying overpriced stuff we don't need with money we don't have, you have to increase debt uptake and make credit ever easier to access and ever cheaper.

So blame THE GOVERNMENTS...not the "evil" coporations taking advantage of a Ponzi system.

Fri, 07/25/2014 - 00:43 | 5002312 AnAnonymous
AnAnonymous's picture

Overpriced stuff 'americans' do not need?
Oh, 'americans' need that stuff. They buy it.
The stuff 'americans' do not need, the stuff they dont buy.

Fri, 07/25/2014 - 07:26 | 5002722 nickt1y
nickt1y's picture

I "need" lots of stuff I can not afford!

Fri, 07/25/2014 - 00:55 | 5002331 Bananamerican
Bananamerican's picture

Hey, let's walk, chew gum and bounce a yo yo at the same time and hate on bankers ,Corps and governments.

Thu, 07/24/2014 - 22:05 | 5001956 QQQBall
QQQBall's picture

dont see any HVAC ducts in that factory photo

Thu, 07/24/2014 - 22:44 | 5002067 mt paul
mt paul's picture

saw a few mallards [ ducks]

in the corner.....

Fri, 07/25/2014 - 01:20 | 5002369 NoPension
NoPension's picture

Lunch

Thu, 07/24/2014 - 23:49 | 5002207 q99x2
q99x2's picture

Sure beats Sam Kennison's idea of giving them all SUV's so they could move to where there is food.

Fri, 07/25/2014 - 09:25 | 5003075 Sivad UK
Sivad UK's picture

"You want to help world hunger? Stop sending them food. Don't send them another bite, send them U-Hauls. Send them a guy that says, "You know, we've been coming here giving you food for about 35 years now and we were driving through the desert, and we realized there wouldn't BE world hunger if you people would live where the FOOD IS! YOU LIVE IN A DESERT!! UNDERSTAND THAT? YOU LIVE IN A FUCKING DESERT!! NOTHING GROWS HERE! NOTHING'S GONNA GROW HERE! Come here, you see this? This is sand. You know what it's gonna be 100 years from now? IT'S GONNA BE SAND!! YOU LIVE IN A FUCKING DESERT! We have deserts in America, we just don't live in them, assholes!""

Fri, 07/25/2014 - 10:26 | 5003326 SamuelMaverick
SamuelMaverick's picture

That Sam Kinison comedy skit was awesome !

 

                          Maverick

Fri, 07/25/2014 - 00:42 | 5002306 Magnum
Magnum's picture

Typing this message from Shanghai, where the women like to show their legs...  It's expensive here.  Restaurants nearly the same as US prices, but you may get polluted food.  Cheap sidewalk bowl of noodles US$2, about what our taco trucks charge.  Rent for an apartment for locals, is same as my hometown in USA.  No cheap property.

Fri, 07/25/2014 - 01:12 | 5002360 mijev
mijev's picture

I found it pretty tough to get laid in shanghai too.

Fri, 07/25/2014 - 00:42 | 5002308 AnAnonymous
AnAnonymous's picture

It is a natural consequence of 'american' economics, that operate with smithian economics at its core.

For some time, China managed to delay the process but it's been a decade they could no longer hold the line.

It has always been part of the 'american' cardbox economics to organize a world tour of misery.

Kenya are just one stop in the 'american' scheme of things. As soon they are no longer willing to work (id est provide themselves with some basic essentials), the activity will be moved. To the next stop.

The way it works in an 'american' world.

Fri, 07/25/2014 - 01:10 | 5002357 unitwar
unitwar's picture

This is all dependent on having someone to sell to.  They can outsource until they finally end up in the biggest shithole in the world with the most desperate people but eventually, cheap labor won't matter because nobody will be able to afford to buy what they make because the  consumer lost their job to the people in the shithole.  Americans can't borrow money forever, can they?  The chinese guy that was making 500 a week who just lost his job to the Ethiopian sure can't afford to buy anything. Everyone can't export.  Someone has to buy.  Amercians can't incur much more debt.  This will not end well for the Average Chinese and Average American.  Ethiopians will get shit on a little less.  For Oligarchs, looks great!

Fri, 07/25/2014 - 01:23 | 5002373 NoPension
NoPension's picture

Don't forget cheap,abundant oil. Not electricity. Oil. To the best of my knowledge, we're not making battery operated ships and planes.

Fri, 07/25/2014 - 07:49 | 5002776 AnAnonymous
AnAnonymous's picture

Chinese economy is not yet driven by domestic consumption.

The Chinese who lost his job to an Ethiopian is invited to find a better paying job. Creative destruction, 'americans' call that.

Fri, 07/25/2014 - 01:22 | 5002372 Professorlocknload
Professorlocknload's picture

No matter, just keep those cheap shoes coming so we have something to hang on the power lines.

Fri, 07/25/2014 - 01:24 | 5002374 mijev
mijev's picture

China's soon going to face the same problem the US and Europe have. Too many people and no jobs. The only way to cure that problem is a good plague.

Fri, 07/25/2014 - 02:11 | 5002429 LostandFound
LostandFound's picture

Capitalism at its best! fucking sad how one persons dream in Africa is to build an house, compares this to the dreams of the west and now the far east. The inequality between nations on this earth is truly heart shattering!

Only yesterday the UN announced that 25% of the worlds population are living on $1.25 per day.

Fucking crazy world. 

Fri, 07/25/2014 - 07:12 | 5002705 Unstable Condition
Unstable Condition's picture

You conflate capitaism with central planning.

Fri, 07/25/2014 - 08:14 | 5002843 eishund
eishund's picture

It's not the idea but the idiot. Human greed has corrupted capitalism and edifices have been built to game the system and entrench the few priests at the top. There is no solution. I believe a theocracy is coming soon but how many do?

Fri, 07/25/2014 - 02:33 | 5002448 teslaberry
teslaberry's picture

before all you american haters shit on this country becuase of rampant greed based  "globalization"

just remember that if we don't do it, china will !

 

Fri, 07/25/2014 - 03:22 | 5002498 kurt
kurt's picture

Who are these Clinese I always hear of??

Who    are   the   Clinese????

Fri, 07/25/2014 - 03:32 | 5002507 hedgiex
hedgiex's picture

Like a mirror. One side having a hangover from conspicuous consumption and laden with foreign debt. The other side having a hangover from domestic debt fueld overproduction and brick and mortar overinvestment. One side of baby boomers duped by easy credit. The other side duped by high savings that find its way to Corrupted. One side props up the financialization of its economy. The other side resists it. One side practices military hegemony. The other side eonomic hegemony (Both connect with capitalist crony governments not the People in their neigborhoods).

If they hug each other for a common solution the 90% will be f"d. If they diverge in their paths then it is who shall come down first pulling the other along and the 90% will also be f'd.

The global 90% has much in common but bickering not prioritizing on the top 10% with their kill machines; so we will all be f'd. Just When.

Fri, 07/25/2014 - 06:16 | 5002649 22winmag
22winmag's picture

They had to abolish chattel slavery so they could institute wage slavery.

Fri, 07/25/2014 - 06:59 | 5002693 Last of the Mid...
Last of the Middle Class's picture

Clearly their banking system had no hand in this, It's "Soaring labor costs" that is the China problem. Wow, nothing changes, I feel sorry for the first martians here, they'll be building intergalactic ishit for shiny objects for the next 1000 years.

Fri, 07/25/2014 - 07:27 | 5002728 nickt1y
nickt1y's picture

The joke is on the Chinese .... We taught and trained all their economists! HAAAAAAAA! They are a doomed as we are!

Fri, 07/25/2014 - 07:51 | 5002778 AnAnonymous
AnAnonymous's picture

'Americanism' is spreading everywhere. Everywhere, it brings the same demands.

Fri, 07/25/2014 - 08:10 | 5002823 shovelhead
shovelhead's picture

If we just switched from eating expensive meats to cheap humans, eventually we could get back to full employment and return to eating expensive meat.

I imagine prices would stay high on those tasty gingers.

Fri, 07/25/2014 - 08:11 | 5002829 zippy_uk
zippy_uk's picture

This is the end game. Yes there are alot of people in Africa but it is also a hugh resource continent with out
sufficient infrastructure, and where there are large population centres they are dispersed widely as the Africa is
a vast land mass in proportion to its population - unlike China or India.

The net effect of this in my view is that any offshoring wage abritrage will be short lived as there will only be
so many locations with investable cheap labour and reasonable infrastructure. Beyond that its more effort and less
margin which is probably already razor thin for this trend to be happening at all.

As Africa is a resource play - it literally has everything pretty much, any savings from these wages which
get reinvested locally will produce rapid wage increases as there is loads of catch up growth to be had
for little money. Its not happened in decades as they never had the money.

So I give it about 10 years, then the offshoring boom is over - for good. There will be more global consumers than
global low wage earners and that trend will be an accelerating one. With wages rising, so will interest rates
which means the machines replacing all labour agrument won't work either because these are capital goods which
will have to be paid for by borrowing before they can be deployed.

Phase II globalisation, where wages are pretty consistent around the world may involve global unions forming.
It will be interesting to see how the 0.1% globalist explain that one away - "must not have, as this is the wrong
type of globalisation"

Fri, 07/25/2014 - 09:04 | 5002990 Chuck Knoblauch
Chuck Knoblauch's picture

I hope the Africans learned their lesson on colonialism.

It hasn't worked well for them.

 

Fri, 07/25/2014 - 09:03 | 5002991 Chuck Knoblauch
Chuck Knoblauch's picture

I hope the Africans learned their lesson on colonialism.

It hasn't worked well for them.

 

Fri, 07/25/2014 - 08:59 | 5002979 Chuck Knoblauch
Chuck Knoblauch's picture

They will soon be outsourcing work to the United States.

That's the plan, morons.

Fri, 07/25/2014 - 09:36 | 5003107 Perimetr
Perimetr's picture

Hell. I thought it was going to be Arkansas

Fri, 07/25/2014 - 10:00 | 5003207 NoTTD
NoTTD's picture

What is the next logical step?

 

China is brimming over with a restless, burgeoning population.  Africa, for the most part, presents a vast empty space with plenty of resources to support a hard working people who are used to subsitence living.  Why not fill it up with the excess Chinese peasantry?  

 

Unlike the past colonial powers who sent only a small group to rule the locals, China is set to actually colonize an entire continent.  To become the locals.  Problems with the local work ethic?  Gone.  

 

You heard it here first.

Fri, 07/25/2014 - 11:51 | 5003707 InflammatoryResponse
InflammatoryResponse's picture

Nah,

 

I've said that long before I just read your comment. :)

Long time ago I was reading about the Chinese activities in Africa, and the "locals" were complaining that the Chicoms were bringing in too many workers, so the locals weren't benefitting.

seems the leaders didn't have a significant clue as to what was going to happen.  Whoopsie.

The chines horde will be like  tumor.

 

Fri, 07/25/2014 - 11:59 | 5003752 AnAnonymous
AnAnonymous's picture

'Americans' sent tons of people.

Fri, 07/25/2014 - 10:19 | 5003275 roadhazard
roadhazard's picture

Finally, jobs for Americans.

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