January 9, 2011
Beijing Boosts Wages Amid Fears of Unrest
Officials in Beijing have raised the minimum wage in the Chinese capital by 21 percent, following a similar rise last year, bringing it all the way up to 1,160 yuan a month — about $40 a week or just $1 an hour.
And Beijing’s minimum is the highest in all of China, where the figure is set locally and is currently as low as about 40 cents an hour in some areas.
That underscores the difficulty American manufacturers face when U.S.-made products compete with those made in the People’s Republic. The federal minimum wage in the U.S. is $7.25 an hour, not including benefits.
The latest rise in Beijing’s minimum comes amid government concerns about rising food prices, which have soared nearly 12 percent over a one-year period, according to AFP.
“The government is worried about the disproportionate burden of rising food costs on low-income households, which spend a larger share of their income on basic necessities,” the Financial Times reported.
“It also fears that persistent price rises could stoke social unrest, as they often have in the past.”
A former adviser to China’s central bank, Yu Yongding, wrote in a recent newspaper editorial: “With the contrast between the opulent lifestyle of the rich and the slow improvement of basic living conditions for the poor fomenting social tension, a serious backlash is brewing.”
The wage increases in Beijing and similar increases expected elsewhere in the country are likely to further increase inflation, which is already a growing concern in China.
Beijing Boosts Wages Amid Fears of Unrest
Officials in Beijing have raised the minimum wage in the Chinese capital by 21 percent, following a similar rise last year, bringing it all the way up to 1,160 yuan a month — about $40 a week or just $1 an hour.
And Beijing’s minimum is the highest in all of China, where the figure is set locally and is currently as low as about 40 cents an hour in some areas.
That underscores the difficulty American manufacturers face when U.S.-made products compete with those made in the People’s Republic. The federal minimum wage in the U.S. is $7.25 an hour, not including benefits.
The latest rise in Beijing’s minimum comes amid government concerns about rising food prices, which have soared nearly 12 percent over a one-year period, according to AFP.
“The government is worried about the disproportionate burden of rising food costs on low-income households, which spend a larger share of their income on basic necessities,” the Financial Times reported.
“It also fears that persistent price rises could stoke social unrest, as they often have in the past.”
A former adviser to China’s central bank, Yu Yongding, wrote in a recent newspaper editorial: “With the contrast between the opulent lifestyle of the rich and the slow improvement of basic living conditions for the poor fomenting social tension, a serious backlash is brewing.”
The wage increases in Beijing and similar increases expected elsewhere in the country are likely to further increase inflation, which is already a growing concern in China.
Each month in Newsmax Magazine read hard-hitting commentaries Dick Morris, Ben Stein, Dr. Laura, and many others. Stay informed. Get Newsmax Magazine Delivered Today!!
Newsmax Magazine
Email Alerts
Not just the full story... All of them!
Excerpts from
©2008-2011 Mr Craig Jackson.com
Here Are Some Interesting Items
