[TigerLikesRooster]

They are at the tail end of cheap labor economy. Profit margin is razor thin. Inflation(around 10%) eating up all growth rate(around 10%.) Massive corruption and pent-up resentment by ordinary people.

This is usually when social unrests break out.

[LS]

Yeah. Interesting that Freedman's book, "The World Is Flat," had a story about a Chinese sock manufacturer who made socks for 11 cents per pair and had to move his facilities for cheaper labor.

The dirty little secret, though, is that the U.S. has always been built on high-end labor, due to the availability of land, and that we have never competed with low-wage labor. In the 1800s, Britain battled us with low-wage labor and eventually lost. So did the Japanese in the 1990s. That's why schemes to "bolster" the rust-belt, manufacturing economies are just silly. The only way we win is to stay ahead of the technology---computers, bio-med, glass, high-tech everything.