http://touchstoneblog.org.uk/2009/05/production-consumption-and-wages/ Policy news and comment from the Trades Union Congress (TUC) Sat, 11 Feb 2012 11:45:31 +0000 hourly 1 http://touchstoneblog.org.uk/2009/05/production-consumption-and-wages/comment-page-1/#comment-2424 Chinese low wages and the global recession | ToUChstone blog: A public policy blog from the TUC Thu, 21 May 2009 23:06:29 +0000 http://www.touchstoneblog.org.uk/?p=2734#comment-2424 [...] Tim Page has written in this blog, a similar issue afflicts the German economy. Although wages in Germany are obviously [...] [...] Tim Page has written in this blog, a similar issue afflicts the German economy. Although wages in Germany are obviously [...]

]]> http://touchstoneblog.org.uk/2009/05/production-consumption-and-wages/comment-page-1/#comment-2422 Owen Tudor Thu, 21 May 2009 22:36:28 +0000 http://www.touchstoneblog.org.uk/?p=2734#comment-2422 It's not quite impossible to reduce the savings rate in China. One of the main reasons savings rates are quite high is the lack of social protection. China no longer has (if it ever did in reality) a proper NHS free at the point of need, free state education, decent unemployment benefits or pensions, so people save: in the same way as the absence of socialised medicine internalise health costs in the US auto giants, social costs are internalised to the Chinese family. Providing a better welfare state in China would release funds for consumption and so, indeed, would higher wages: this was the reason that the Chinese government introduced new laws on collective bargaining in the teeth of opposition from the American Chambers of Commerce (and, before the ETUC made them back off, the European Chambers too). That law is unlikely to have an impact in the near future because of the global recession, but wages in China were rising quite fast before the recession hit It’s not quite impossible to reduce the savings rate in China. One of the main reasons savings rates are quite high is the lack of social protection. China no longer has (if it ever did in reality) a proper NHS free at the point of need, free state education, decent unemployment benefits or pensions, so people save: in the same way as the absence of socialised medicine internalise health costs in the US auto giants, social costs are internalised to the Chinese family. Providing a better welfare state in China would release funds for consumption and so, indeed, would higher wages: this was the reason that the Chinese government introduced new laws on collective bargaining in the teeth of opposition from the American Chambers of Commerce (and, before the ETUC made them back off, the European Chambers too). That law is unlikely to have an impact in the near future because of the global recession, but wages in China were rising quite fast before the recession hit

]]> http://touchstoneblog.org.uk/2009/05/production-consumption-and-wages/comment-page-1/#comment-2385 Fons Tuinstra Wed, 20 May 2009 11:55:18 +0000 http://www.touchstoneblog.org.uk/?p=2734#comment-2385 Describing China as a "producer" economy would be slightly deceptive as it has been important for receiving countries, but the export industry added less than 10 percent to its GDP. The Chinese saving rate is indeed a problem, but asking to end it would be like asking the rain from not falling. Describing China as a “producer” economy would be slightly deceptive as it has been important for receiving countries, but the export industry added less than 10 percent to its GDP. The Chinese saving rate is indeed a problem, but asking to end it would be like asking the rain from not falling.

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