The low-wage strategy so beloved of the British business elite – or what Miliband called the race to the bottom – has no future. If Britain is aiming to compete with China in terms of wages, it will have to lower them by 85%. It is doubtful whether this can be achieved even if it engineers a 30-year recession and installs the harshest military dictatorship. Worse, once it had reduced its wages to the Chinese level, it would have to contend with Vietnam, where wages are one-quarter those of Chinas. After dealing with Vietnam, Britain would have to face down the Ethiopias and Burundis of this world, with wages one-third that of Vietnams, or less. Countries like Britain can never win that game...
Posted on: Fri, 08 Nov 2013 09:43:40 +0000
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