Forbes has the article China-Like Wages Now Part Of U.S. Employment Boom.
“The impact of globalization and in, particular, the entry of China into the WTO in 2002 increased the global labor supply markedly,” he says. “Excess supply of Chinese labor and the stream of low cost Chinese goods into the world economy was a boon for global consumers and contributed to disinflationary price pressures, which some central banks said was the result of their successful inflation-targeting policies,” he says, in a jab to central bankers.
This has not come as a surprise to me since 2002.
I have been predicting for probably 40 years or more that the USA has no God given right to a higher standard of living than other countries in the world. My prediction was that the standard of living in other parts of the world would rise some, and the standard of living in the USA would fall some. Policy could impact the sizes of these rises and falls, but the trend toward equalization could not be stopped peacefully.
The policies we could have adopted could have made both the rich and the poor share in the adjustment, but nothing like that has happened. The rich are still getting ahead of other parts of the world, whereas only the workers are suffering the adjustment. I don’t know if that turn of events can be fixed peacefully.
I don’t think even the rich in this country can stave off forever some adjustment in standard of living. After all, an over payed executive in the USA can be replaced by a much cheaper executive from other countries in the world. It is already happening.