In a message dated 5/3/2006 2:32:55 P.M. Eastern Daylight Time,
[EMAIL PROTECTED] writes:
when raising prices, a company in the US has to worry about cheaper
products being imported. It also has to realize that other countries'
businesses are vying for the same world markets
OK. My point here is that it is US corporations which are the major force
behind the "cheaper products being imported" by outsourcing their production
in offshore industrial platforms. About 70 % of China's exports belong to US
firms located there.
About whether "do prices fall as much as wages do?", a quick answer is that
indeed the data shows unequivocally that inflation has been substantially
reduced in the last 10 years. The main point here is that China's entry into
the
world market has doubled up the reserve labor army, that is the industrial
capital/labor ratio has halved , which has pushed the balance of power in
favor of capital and the specter of these vast reserves of labor is being used
by
capitalists in rich countries to stymie wage demands.
Cristobal Senior
