China 's secluded cheap wages tall prices

Lang

enormous reform and beginning up 1 of the prodigies of the Western countries is the formation of low wages and high prices, while China is the low wages of high prices of fashionable economic phenomena.

deserving to China's low wages and high costs combined with high wages and the U.S. combined with low prices, which makes the two countries the gap between substantial income, many higher than the financial income gap. In real life, American workers will still be competent alone to support her household 4 or 5 people, while the Chinese workers went attach dry day and night, are laborious to feed a child, but also often needed to assistance to grandparents.

Why
money wages of employees among both countries in tapering the gap, and the ability of Chinese workmen patronize their families ashore the decline? Even down to the husband and wife are working hard to feed a baby the situation, a situation no merely in China, even the history of industrial evolution in the earth, is also peerless 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 operation. This is the U.S. government than the Chinese people are still concerned almost the root causes of China's reform and opening up.

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

Secondly,GHD IV Mini Straighteners, China's high prices, it is the high taxes and inflation in China to appliance the results. China's tax revenue share of consumer prices as high as 64%, while the proportion of the product itself is only 36% of Chinese people 100 yuan every to buy commodities to include the tax of 64 yuan, nearly 1.8 periods more than the product itself. This amazing high commodity prices, which added to the tax, high above the price of natural causes.

stop here if it when a catastrophe, but for Chinese people is concerned, the calamity is in no way over, Chinese people also have to 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 about 1 to 7 additional 7 yuan to equilibrium, China's foreign exchange reserves about 2.3 trillion dollars, which additional domestic RMB more than 16 trillion yuan, equivalent to 2008 3.4 trillion market of currency in propagation (M0) of the nearly 5-fold,GHD Midnight Gift Set 2011, which put a mammoth sum of foreign exchange from the export of currency, all the way to inflation,GHD IV Pink Straighteners, people passed on to the brain, causing a sharp depreciation of the currency the hands of the people, the price will certainly be the appropriate a keen ascend.

Here we saw a tears to the ridiculous phenomenon of the Chinese people: Chinese exports more to earn more foreign commute, the more cursed folk. If China does not backup merchandise, yet as the servant life of the folk, not only tin improve people's alive standards, and does not happen external monetary perquisite; or take a step behind, if Chinese exports handing alien countries, not receive U.S. dollars, the nation will also ambition not be issuing RMB will not depreciate the money, the detriment of the Chinese people will be smaller. But immediately it is, the product of merchandise exported to foreign countries, export of goods in exchange for the dollar also lent abroad, and the resulting issuance of renminbi remain in the servant mart,GHD Blue Straighteners, became the root of the commodity there is no periodical. Because of these appended The outcome is that Chinese people not only lose that part of the wealth of export commodities,GHD NZ, even in the hands of wealth are subject to a depreciation of the currency losses.

contrast with China the United States is precisely the opposite case, money streams to the U.S. market to China, Chinese goods into the U.S. market, due 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 going to China but also by way of China to buy U.S. treasury bonds back to the U.S. Treasury, the U.S. Treasury can use the money to addition China's supply of public goods, can further dwindle the prices melodrama a role in raising money the American people purchasing power.

If people stand in the rank of the two countries - and not on the national position - look at the problem will convert more remove, the Chinese people generate goods, are the American people bought in U.S. dollars, the U.S. dollar at the Chinese government takes; the American people are a commodity, 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 published to China, the Chinese yuan memoranda issued to the people; the United States use these memoranda in exchange for the American people need a kind of products, while China is the opposite, with These notes from the hands of the Chinese people to go for the production of manifold commodities. Cube fashioned by the wealth of the maximum critical facet, that is, issuing currency and commodities to increase the detachment between: New to increase the flow of goods the United States and other Western countries, the new currency is published to linger in the Chinese market,GHD Deluxe Midnight 2011, the people continue to reduce the hand in the purchasing power of money.

This is the U.S. high-wage low prices, low wages high prices the Chinese hidden.