Key How To

Re: [spiers] Key How To

Pete,

I guess you are assuming with wage rates increasing, and products getting more
expensive,
that less will sell, bad for China, contrary to my argument. If so, there is
the error... when
wage rates increase, and products get more expensive, they sell more. See
Japan, Inc, and
the history of mankind.

Indeed. . since the above is working, since free market management is proven
superior to
communist management, they want to improve more. Beating USA management is not
hard,
and since that is true, proven with real life results, then, they wish to do
more.

My objection is USA wage rates are not increasing, USA exports are not getting
more
expensive (what exports we have are heavily subsidized) , USA is not doing
better. I agree we
have to improve USA management level, but nothing is being done...(except of
course on this
website...)

We can beat anyone, I am all for U S A #1, it's just that neither of the parties
with monopoly
on USA elections has anyone they can field who can lead USA to prosperity.
Better they cut
back and let USA business take on the task. No more subsidies, no more
regulations. We'll
take it from there.

John


On Wed, 18 Oct 2006 13:40:16 -0400, "Pete Holt" wrote :

>
> Well, first you repeatedly claim that wages and wage rates have no effect on
pricing or
competitiveness. But they say they "face rising wages at the same time the
country's currency
is gradually appreciating, making Chinese exports more expensive abroad".
Second, they are
saying that "We have to improve our ... management level" while you claim that
the one
major deficiency in US business is our management and that Chinese management is
one of
their major competitive advantages.
>
> It looks to me like they are saying two things that would seem to contradict
your positions
on international trade.
>
>
> ----- Original Message -----
> From: John Spiers
> To: spiers@yahoogroups.com
> Sent: Wednesday, October 18, 2006 12:06 PM
> Subject: Re: [spiers] Key How To
>
>
> Pete,
>
> I am not sure why this woould appall me, it is exactly how it works, and is
exhibit A as to
why
> US govt policy is so backwards. China wants to get rich like Japan, so they
are doing it the
> exact same way. That NYT headline could be straight out of 1975, and read :
"Japan's
> automakers also face rising wages at the same time the country's currency is
gradually
> appreciating, making Japanese exports more expensive abroad. " The Japanese
goods cost
> us, the more we bought. I am delighted both aspects are true... a wealthy
China is all the
> better trading partner for a USA. I just regret the communists are fielding
a better team
than
> USA in the competition for free trade world wide.
>
> JOhn
> On Wed, 18 Oct 2006 10:11:43 -0400, "Pete Holt" wrote :
>
> >
> > Hi John,
> > I thought the following quote from an article in the NY Times concerning
Chinese auto
> manufacturers( http://www.nytimes.com/2006/10/18/automobiles/
> 18chinacars.html?pagewanted=1&_r=1&th&emc=th ) would appall you suitably:
> > China's automakers also face rising wages at the same time the country's
currency is
> gradually appreciating, making Chinese exports more expensive abroad.
> >
> > "It is a message for us," said Jiang Lei, the executive vice chairman of
the China
Association
> of Automobile Manufacturers, a government agency that guides the industry.
"We cannot
rely
> on cost alone. We have to improve our technology and management level."
> >
> > Pete Holt

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