America desperately needs protectionism. While we struggle with rampant unemployment...Mon, June 7, 2010 - 6:39 AM
China Jobs Gain Signals Honda Offer ‘Tip’ of Iceberg (Update1)
June 01, 2010, 9:05 PM EDT
(Updates with Foxconn, Honda statements in eighth and ninth paragraphs.)
June 2 (Bloomberg) -- China’s manufacturing job growth accelerated to the fastest pace in at least five years in the past three months, signaling more employers may be forced to follow Honda Motor Co. in offering higher wages.
The Federation of Logistics and Purchasing said yesterday in Beijing its average factory employment index for the past three months reached 52.7 even as its measure for manufacturing growth slid. The release came a day after Tokyo-based Honda offered a 24 percent pay increase to workers at a factory in the aftermath of a strike that shut down its Chinese production.
Faster job growth and higher wages will help Premier Wen Jiabao’s government rebalance the world’s third-largest economy away from export dependence. The shift may also stoke inflation, making it more important that officials contain prices in part by ending China’s currency peg to the dollar, said Peng Wensheng, head of China research at Barclays Capital.
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Rising vehicle inventories among dealers and manufacturers, coupled with slowing demand, could lead to a price war, Credit Suisse said in its report last week.
One-two punch, eh?Hah. Rising wages and falling auto prices. Wouldn't we Americans like to see that happen?
This is all because of China's protectionist policies... which we Americans aren't allowed to do.
I understand what rising wages means.
What I would like to see is the folks in the US start buying American's made cars.
I would also like to see the American made cars more fuel efficient. I have to laugh at some of the ads I see and what they are advertising as fuel efficiency in cars.
I have a ten year old car made by Saturn that gets 40MPG. They made it a few years and took it off the market.
Oh back to the subject. What we needed was more honest people in high places. I am afraid that we may be a long time trying to recoup from the destruction from this last fall out.
More government involvement isn't always a good thing.
I'd also like more of the PARTS in American cars to be made in the US, or at least a Western Democracy.
If I were President I would raise tariffs to the MOON against low wage nations like India, China and Mexico, and (this is highly important) lower or eliminate tariffs against Europe (and maybe Japan), and call on them to do the same.
Free trade with Western democracies and ZERO trade with the polluted sweatshop nations.