(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/2010-11-18-fear-the-boom-and-bust-a-hayek-vs-keynes-rap-anthem/ http://www.vlogolution.com/hot/2010-11-18-fear-the-boom-and-bust-a-hayek-vs-keynes-rap-anthem/#comments Fri, 19 Nov 2010 01:25:22 +0000 http://www.vlogolution.com/hot/?p=832

I had posted this awesome rap video on my facebook page earlier this year, but never got around to making a blog post about it.  Another great video that lays out the craziness of the “boom and bust” cycle in modern economies.  What’s more crazy is that the twisted version of Keynesian economics pursued by governments today would have Keynes himself rolling in his grave in disgust.  Somehow politicians conveniently forgot that key little detail that governments are supposed to SAVE when times are good.  Instead, politicians spend like nuts in good times, and SPEND LIKE MANIACS when times are bad.  Why let such key details interfere with the opportunity for politicians to promote their own agendas…  Enjoy the show!

ps. If you enjoyed this video, be sure to check out the links below for the sequel!