(SeekingAlpha-MHFT) “Textile workers earn $2.99 an hour in India ($PIN), $1.84 in China ($FXI), and $0.49 in Vietnam ($VNM).”

“This compares to the $8 an hour our much abused illegals get at sweat shops in Los Angeles, and $10 in some of the nicer places. What’s more, the Indian wage is up 17% in a year, meaning that inflation is casting a lengthening shadow over the sub continent’s economic miracle. A series of strikes and a wave of suicides have brought wage settlements with increases as high as 20% in China.”

“This is how the employment drain in the US is going to end. When foreign labor costs reach half of those at home, manufacturers quit exporting jobs because the cost advantages gained are not worth the headaches and risk involved in managing a foreign language work force, the shipping expense, political risk, import duties, and supply disruptions, just to get lower quality goods. Chinese wage growth at this rate takes them up to half our minimum wage in only five years.”

“This has already happened in South Korea ($EWY), where wage costs are 60% of American ones. As a result, Korea’s GDP growth is half that seen in China. These numbers are also a powerful argument for investing in Vietnam, where wages are only 27% of those found in the Middle Kingdom, and where Chinese companies are increasingly doing their own offshoring.”

Full Story: How US Job Losses Will End (SeekingAlpha-MHFT)

Reducing overwhelming regulatory burdens and requirements would also go a long way to help reduce unemployment as well:

(PeterSchiff) “In my own business, securities regulations have prohibited me from hiring brokers for more than three years. I was even fined fifteen thousand dollar expressly for hiring too many brokers in 2008. In the process I incurred more than $500,000 in legal bills to mitigate a more severe regulatory outcome as a result of hiring too many workers. I have also been prohibited from opening up additional offices. I had a major expansion plan that would have resulted in my creating hundreds of additional jobs. Regulations have forced me to put those jobs on hold.”

Full Story: Peter Schiff: Before the Congressional Committee of Oversight & Reform (YouTube)

]]> http://www.vlogolution.com/hot/2011-11-02-how-us-job-losses-and-offshoring-will-start-to-decline/feed/ 0 http://www.vlogolution.com/hot/2011-10-26-crystal-ball-of-economics-complexity-predicts-the-future-growth-of-nations/ http://www.vlogolution.com/hot/2011-10-26-crystal-ball-of-economics-complexity-predicts-the-future-growth-of-nations/#comments Wed, 26 Oct 2011 18:02:28 +0000 http://www.vlogolution.com/hot/?p=1279

(WSJ) “Economists at Harvard University and Massachusetts Institute of Technology have just released what they claim to be the crystal ball of economics: a model for predicting a nation’s future growth more accurately than any other techniques out there.”

” ‘The Atlas of Economic Complexity’ ranks 128 nations based on their ‘productive knowledge’ — the skills, experience and general know-how that a given population acquires in producing certain goods. Countries with a high score in the report’s ‘economic complexity index’ have acquired years of knowledge in making a variety of products and goods and also have lots of room for growth. Essentially, the more collective knowledge a country has in producing goods, the richer it is — or will be.”

” ‘The essential theory … is that countries grow based on the knowledge of making things,’ Mr. Hausmann said in a phone interview. ‘It’s not years of schooling. It’s what are the products that you know how to make. And what drives growth is the difference between how much knowledge you have and how rich you are.’ ”

“Thus, nations with extensive productive knowledge but relatively little wealth haven’t met their potential, and will eventually catch up, Mr. Hausmann said. Those countries will experience the most growth through 2020, according to the report.”

Full story: ‘Complexity’ Predicts Nations’ Future Growth (WSJ)

(p63 of Study) ” The countries in the top ten of this ranking are Japan, Germany, Switzerland Sweden, Austria, Finland, Singapore, Czech Republic, the UK and Slovenia. Immediately after the top 10 we have France, Korea and the US. Of the top 20 countries, half are in Western Europe, 3 are in East Asia, and surprisingly 4 are in Eastern Europe. Israel and Mexico close the list of the top 20. These are countries with productive structures that are able to hold vast amounts of productive knowledge, and that manufacture an export a large number of sophisticated goods. At the bottom the economic complexity ranking we have Papua New Guinea, The Republic of Congo, Sudan, Angola and Mauritania. .. Interestingly the least complex countries in Western Europe are Portugal (35) and Greece (53), two countries who’s high income cannot be explained by either their complexity or their natural resource wealth. We do not think that this unrelated to their present difficulties: their current income has been propped up by massive capital inflows and, as these decline to more sustainable levels, the internal weaknesses come to the fore.”

(p69 of Study) “Here countries are sorted according to their per capita growth potential , which is estimated from the mismatch between a country’s current level of aggregate output (GDP per capita) and their level of economic complexity. China, India and Thailand are at the top of this ranking, since they are countries with economies that are remarkably complex, given their current level of income, and are expected to catch up faster than other developing nations. Next come Belarus, Moldova, Zimbabwe, Ukraine and Bosnia-Herzegovina, five countries where the current level of income is dramatically lower than what one would expect given their productive capabilities. This ranking shows that the two regions of the world where the potential of per capita growth is higher are East Asia and Eastern Europe. At the bottom of this ranking we have Sudan, Angola and Mauritania. These are developing countries where the complexity of their economies does not provide a basis for future economic growth, and, where changes in income are dominated by fluctuations in the price and volume of natural resource activities.”

Site for the Atlas Study: The Atlas of Economic Complexity (Mapping Paths to Prosperity)

I came across this article about nine-year-old Slumdog Millionaire actress, Rubina Ali allegedly being SOLD by her father while updating my last post.  According to Reuters, Rubina’s biological mother, Khurshid blew the whistle on her ex-husband, Rafiq Qureshi for trying to SELL HIS NOW FAMOUS DAUGHTER for $290,000.00 U.S.D.

Just a few weeks ago the celebrity blog ImNotObsessed.com published that Angelina Jolie reportedly told Rubina Ali’s Slumdog co-star, Azharuddin Mohammed when asked if she’d consider adopting a child from India, “Well, I’ll let you into a little secret, we will soon.”

Hey Angie, strike while the iron is hot – here’s your big chance!  ADOPT RUBINA! It would be a win/win and TERRIFIC PUBLICITY!  Not that Brangelina needs more…  On a personal note, I don’t find it shocking that a daughter of India was auctioned off (even if it was just a sting operation) – that’s commonplace, hell, you saw Slumdog, right?!  However, the irony that THIS GIRL would be auctioned off, a little actress who now is known around the world for helping to tell how life is in that up and coming part of the globe is now a likely victim herself.

Do you think Angelina should adopt Rubina making her child number seven?