China 's mystery cheap wages lofty prices

Lang

enormous reform and opening up 1 of the wonders of the Western countries is the formation of low wages and high prices, while China is the low wages of high prices of new economy phenomena.

due to China's low wages and high prices combined with high wages and the U.S. combined with low prices, which makes the two countries the gap between tangible earnings, many higher than the monetary income gap. In real life, American workers will still be able alone to support her household four or 5 people, while the Chinese workers went together dry day and night, are laborious to feed a child, but also often needed to help to grandparents.

Why
money wages of workers between either countries in lessening the gap, and the ability of Chinese personnel assist their families above the ebb? Even down apt the husband and wife are working hard apt fared a child the situation, a situation no merely in China, even the history of industrial evolution in the globe, is also unique rare phenomenon.

So what caused such a reality, the answer is simple: China Financial.

low prices, if the United States is China's high prices are the result of China's financial action. This is the U.S. government than the Chinese people are still concerned about the root causes of China's reform and beginning up.

First of all, lower prices for the United States. First, China's financial subsidies the way via the export tax reduction paid by commodity; the second is the way through the loss of subsidies paid to corporations.

Secondly, China's high prices, it is the high taxes and inflation in China to appliance the results. China's tariff revenue share of client prices for high for 64%, meantime the proportion of the product itself is only 36% of Chinese people 100 yuan each to buy commodities to include the tax of 64 yuan, approximately 1.8 periods more than the product itself. This amazing high commodity prices, which joined to the tax, high above the price of natural reasons.

stop here if it when a disaster, but for Chinese people is cared, the disaster is a grain of truth over,GHD Pink Limited Edition, Chinese people also must bear the enormous export commodities because of the loss of inflation . China's exports of $ 1 for each commodity, the domestic will in accordance with the exchange rate to more than almost 1 to 7 additional 7 yuan to poise, China's foreign exchange reserves almost 2.3 trillion dollars, which additional domestic RMB more than 16 trillion yuan,GHD Midnight Gift Set 2011, equivalent to 2008 3.4 trillion market of currency in prevalence (M0) of the nearly 5-fold, which put a huge sum of foreign exchange from the export of currency, all the way to inflation, people passed on to the head, causing a sharp depreciation of the currency the hands of the people,GHD Blue Butterfly 2011, the price will surely be the fitting a sharp heave.

Here we saw a tears to the preposterous phenomenon of the Chinese people: Chinese exports extra to acquire more foreign interchange, the more disastrous human. If China does not export merchandise, but as the domestic life of the human, not only tin cultivate people's alive standards, and does not occur external monetary perquisite; alternatively take a step back, if Chinese exports handing foreign countries, not receive U.S. dollars, the nation will also will not be issuing RMB will not devalue the currency,GHD Precious Gift Set, the wastage of the Chinese people will be smaller. But now it is, the product of merchandise exported to foreign countries, export of goods in exchange for the USD also lent overseas, and the resulting issuance of renminbi remain in the servant market, became the root of the commodity there is not periodical. Because of these appended The outcome is namely Chinese people not only lose namely chapter of the asset of export commodities, even in the hands of asset are subject to a depreciation of the currency losses.

contrast with China the United States is precisely the opposite case, money flows to the U.S. market to China, Chinese goods into the U.S. market, deserving to reduced commodity currencies on the market increases, prices will inevitably guide to decline in the U.S. people and his money can buy more goods. Coupled with the dollar working to China but also by access of China to buy U.S. treasury bonds back to the U.S. Treasury, the U.S. Treasury can use the money to mushroom China's afford of public goods, can further depress the prices activity a character in raising money the American people purchasing power.

If people stand in the position of the two countries - and not on the citizen position - see by the problem will chance more remove, the Chinese people generate goods, are the American people bought in U.S. dollars, the U.S. dollar by the Chinese government takes; the American people are a commodity,GHD Carry Case & Heat Mat, the Chinese government received U.S. dollars, only to be the Chinese people is to hand the current devaluation of the currency.

a result, the U.S. dollar bill issued to China, the Chinese yuan memoranda issued to the people; the United States use these notes in exchange for the American people absence a diversity of products, while China is the opposite, with These notes from the hands of the Chinese people to go for the production of various commodities. Cube fashioned by the wealth of the most fussy appearance, that is, issuing currency and commodities to increase the disjunction between: New to increase the flow of goods the United States and additional Western countries, the new currency is issued to linger in the Chinese market, the people continue to dilute the hand in the purchasing power of money.

This namely the U.S. high-wage low costs,GHD, low wages high prices the Chinese secret.