miércoles, abril 11, 2012

The Manufacturing Wage U.S. vs. China Gap is Shrinking

The Daily Reckoning

How a 17-Year-Old Girl's Suicide Attempt Changed Everything You Knew About Investing

This story will surprise even the most seasoned investor...
and could lead to the most-important investing trend
since the Industrial Revolution


After working 12-hour days for a month, Tian Yu still had not received her salary card. Totally broke, exhausted and frustrated... she climbed to the fourth floor of her dormitory and jumped.
Unknown to anyone, the 17-year-old changed the world economy forever when she took that desperate leap.
Ms. Yu didn’t die, like she had hoped. But 18-year-old Ma Diangqian did. And so did 16 other Chinese citizens who’ve taken these drastic leaps.
In communist China, suicide is considered a crime against the state. It’s the ultimate form of protest. And Tian, Ma and those 16 other Chinese have made the ultimate sacrifice to protest the low wages and sweatshop-like working conditions.
Together, they’ve incited a small, but growing revolution — one that has already begun to play its part in shifting the investing landscape, not only in China, but right here in America, too.
If you understand the shift that is under way, you’ll be one of the first to take advantage of the most-important investing trend since the Industrial Revolution.
Here’s what I mean...
Slowly, but surely, these protests are working. Chinese wages are now on the rise. Just take a look at this chart from the Bureau of Labor Statistics:
Wage Gap As you see, here in America, we’ve seen slow growth in wages. But Chinese wages are increasing at a much faster clip.
Back in 2005, for example, U.S. manufacturing wages were 22 times those of China. Today, that gap has shrunk to under 10 times.
If China wage growth continues at this rate, the U.S./China wage gap will be under five times by 2015.
But wages are just the start of this story. Here’s what I mean...

The Comeback No One Will Believe

It’s no secret that American companies have outsourced production to China for decades. But with Chinese wages increasing, it doesn’t make as much sense to send those jobs overseas now.
Add in high oil prices and the increased cost of transporting goods from China and you could get the great comeback no one is expecting...
The great revival of American manufacturing.
The world, dear reader, is turning.
For you, this turn could change everything about where you should park your money in the coming years...
Certain entrepreneurs, for example, could gain business from this shift back to American production. Other companies will suffer badly as their source of overseas cheap labor vanishes.
Play this global shift correctly and you stand to grow wealthy. Get it wrong, however, and you’ll sacrifice a fortune.
And know this...
The great revival in American manufacturing has already begun to take off, although most people haven’t noticed yet.
Caterpillar, for example, has built a new plant in Georgia where it will manufacture excavators and small tractors.
Intel is investing $8 billion in building and upgrading plants in Hillsboro, Ore....likely the largest capital project in state history. It’s the first new Intel plant built since 2007...and they chose to build it here in the U.S.
The Chicago Tribune reported in 2011, “Nearly written off after decades of stagnation, job losses and overseas outsourcing, the ‘Made in the USA’ label is poised for a comeback.
“A retooled domestic workforce, paired with rising wages abroad, could lead to a renaissance in U.S. manufacturing within five years.”
The trick to profiting from this shift is to not only study the trend on paper, but to put in the legwork and travel required to research the Chinese culture driving this revolution... and trace the steps back to America.
That’s where we can help. And it’s why I’m excited to offer you something we’ve never offered before...
Hi, I’m Doug Hill — Publisher of Laissez Faire Books.
On April 12, we’re hosting a first in our 40-year history: an online event in which we’ll explore five world-shaking events that are sure to impact your financial future.
Tian Yu and her 17 co-workers who’ve incited the revival of the American industry is just one of those trends.
Other trends we’ll explore are...
- WORLD-SHAKING SHIFTS IN POWER: Since the Industrial Revolution, large gaps have existed — primarily in manufacturing might and military power — between the Western world (America and Europe) and everyone else. But since the late 20th century, these gaps began narrowing and continue to narrow today. This shift could change how investors need to act over the next 30 years
- EMERGING MARKETS BECOMING DEVELOPED MARKETS: Emerging markets now account for 50% of global economic activity. Mexico is bigger than Canada. India is bigger than Germany. Turkey is larger than Australia. This trend will end the era of "emerging markets" and put massive pressure on resources for decades as this trend continues
- GLOBAL WATER SHORTAGES: We take clean, drinkable water for granted here is the United States. But for many countries, plentiful water is a luxury. China, Sudan, Iraq, Pakistan and Egypt all need to "manufacture" clean water. This opens up a huge market in emerging markets for global water companies...and investors.
So how can you ride along on this adventure and get the insight behind all of these trends? And what’s the twist behind it being free? Let me first introduce the man behind this story...

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