New Reply

Post a Reply

Thread: Everything hikes except salary!!!

Title: (100 characters at most)

Content: ( 3,000 characters at most, please )

You can add emoticons below to your post by clicking them.

[quote=ERENCIUS,247769]Al I guess you didn' t get what I said:
"But to consume, you need money, and if it increases it means otherwise Chinese saved a lot and are spending what they saved, otherwise the have other sources of revenu. Noone can buy more with the same amount of money, especially in a context of rocketing inflation."
This sentence means that if they have no savings where does the money come from ? From a soaring revenu... Of course poor people do not have any savings, it was exactly what I meant.

Quote:
"When Chinese companies will get less competitive on the international market they ll worry about redistributing the money to their employees": --> When they will get less competitive, they will either close, buy machinery that works 24hrs a day and that is cheaper than labor or move to something (or somewhere) else: NOT give more to their employees.
Why did I just said this: imagine that you are less competitive on the foreign markets, what will you do if you have a 1.4 billion inner potential market but still undeveloped? You wont replace people with machine, because investment needs money and takes time you ll be replaced on the international market faster than you can upgrade your industry.
However if you increase the wages of your employees you create a potential demand so you can try to take advantage of your situation. Higher salaries ----> more market opportunities.

On the point "widening income gap refers to revenues vs price of things; not only gap between poors and rich. And let's not mix things up between higher consomation rates and basic food needs and prices. People do not eat more rice because they use their savings and yes the big spending numbers mostly reflect rich people luxury spending, increasing investments, capital gains from insane stock market and population growth."
That's what I said: no matter you are rich or poor, your consumption of food is the same so... the inflation on this product cannot be linked to the widening income gap. Which means: they have higher revenu and the company abused of her monopoly status.[/quote]

characters left

Name:

Get a new code