Thursday, May 12, 2011

China Labor Shortage is Reason to Invest in U.S.

United Nations population predictions at China-profile.com

We've all been conditioned to fear China as a competitor against the U.S. for its growing manufacturing prowess and production abilities fueled by a 1.3 billion population.

Much time has been spent looking at the recent past in China as a predictor of the near future there.  Wall Street followed those predictions and has invested heavily in manufacturing in China.

Now this.

The Wall Street Journal reported on China's labor shortage issue this week.   The issue is gaining steam out there as if it were new news.

It should be of no surprise.  China's shortage of production-age population has been a demographic fact looming large for some time.   The United Nations' population predictions have shown it coming.

The fear of inflation was the focus issue of the report.  Inflation is a legitimate fear, but that's not the point. 

The focus could just have easily been on what it means for manufacturing in the U.S.  The issue is whether Wall Street will see China's growing labor shortage for what it is--a reason to invest in manufacturing in the U.S. instead.

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