Economics, Insurance, and the Economics of Insurance.
Sunday, May 22, 2011
U.S. manufacturing renaissance?
'Wages are increasing 11% per year in China and by 10% in India, which means that labor costs there are doubling every 7 or 8 years if those wage increases continue. Wages in the U.S. are rising by only 1.9% annually and at that rate it would take 37 years before wages would double here. At some point, the labor arbitrage advantages for China and India have to disappear. BCG predicts that “Sometime around 2015, manufacturers will be indifferent between locating in America or China for production for consumption in America." ' - Mark Perry from the blog Carpe Diem