I would say that is due to purchasing power parity differences. China is already too wage expensive now for cheap wages; manufacturing has been moving to other Southeast Asian locations, such as Vietnam.Pfanni wrote: Why does a barista in the USA make more mony tham the iPhone-assembly line worker in China?
A barista doesn't really make much relative to COL. About 16K-25K depending on location. Imagine trying to live on 25K in San Francisco. The other issue is they're likely a barista because they were either hoodwinked by the college-loan industry complex and/or naive enough to get a degree in Women's Gender Studies, etc.. Or maybe they are overqualified graduates, but can't find a job.
Wages aren't the most important factor in hiring overseas or domestic anyway, as the reshoring phenomenom attests. Still, there's no doubt that China pegging the yuan to the dollar back in 1994 is responsible for offshoring. The giant sucking sound ala NAFTA sure wasn't to Mexico or Canada.
