The New York Times reports that as the labor supply in China diminishes, wages rise and so will prices of consumer goods here in the U.S.:
Chinese wages are on the rise. No reliable figures for average wages exist; the government’s economic data are notably unreliable. But factory owners and experts who monitor the nation’s labor market say that businesses are having a hard time finding able-bodied workers and are having to pay the workers they can find more money.
And higher wages in China are likely to lead to higher prices in the United States ” at the mall, at the grocery, even at the gas pump. [Full text]
[Image: At the Dahon bicycle plant in Shenzhen, China, pay has risen 10 to 15 percent a year, but productivity gains have held down costs, by Ariana Lindquist for The New York Times]
