The Epic American Credit and Bond Bubble Laboratory Message Board

To: russwinter who wrote (109652)	2/19/2011 2:12:52 AM
From: GST	1 Recommendation Read Replies (1) of 109993

Russ -- why should this be so alarming? To me it is the natural progression of economic development. A migrant labor force might have made sense in the early mobilization of Chinese labor, but it makes less and less sense every year. The shortages of migrant labor are a positive development as jobs move west and up the delta. This has been going on year after year for quite a long time now: From the article you posted -- <<The population of migrant workers in China stand between 220 to 230 million, among whom 140 million had worked outside their hometowns. The labor shortage has been felt in the country since seven or eight years ago. Lu Jiehua, a professor of social science with the elite Peking University, attributed the shortage to the development of inland areas. "In the past, the prosperous Yangtze River Delta could create lucrative jobs for migrant workers," said Lu. "But now, the economic level in southwest China's Sichuan province and Chongqing municipality, as well as in north China's Hebei province and Tianjin municipality, rose dramatically, diverting a large number of migrant workers.">> I have no doubt that it will squeeze Taiwanese subcontractors in the lower delta, but I do not see it playing out as any sort of economic disaster.