Why are China's commodity price than the western high?

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Why are China's commodity price than the western high?

Post by superman on Fri Jul 15, 2011 11:19 am

First why prices high? It has a relatively high and absolute high two respects reason:
1. Price relative increase
Countries to boost the economy and take positive fiscal policy and the loose polo shirt, will increase the total social demand, the domestic price of the upstream industry to improve the spread downstream industry by the commodity industrial goods the production of raw materials and spread to the general life consumer goods which causes prices to gucci shoes sale.
2. Prices higher (than western countries )
Lang larry mentioned the problem, according to the exchange rate conversion in China, most of the goods more expensive than foreign. This problem two reasons: 1. Due to benefit is bad, traders often default payment for goods manufacturers forced to raise the profits producer price that end consumer prices improve; 2. Local government and the central government financial income, property and chanel bags, so that the local government asymmetry the transportation departments of finance shortage abuse of an extra charge excessively high freight.
Then why low income? Three reasons:

1. lack of domestic demand.
Domestic consumption shortage of consumer goods and eventually, most downstream enterprise earnings not ideal, even has a large number of tory burch purse and medium-sized enterprises collapse, enterprise have to cut payroll, and even had to layoffs to maintain the enterprise management. This causes the wages and prices rise.
2. The first time distribution is not reasonable (i.e. capitalism)
There are many profitability good enterprise, focused too much on ghd, and pay remuneration of the labor force is less, the man-made workers low salary, it actually is the private economy of capitalism, the performance of the labor force is business owners exploitation, but sometimes do also to "efficiency first", because there are a lot of China's current cultural level very low cheap labor, this is China's current helpless choice.
3. Lang larry mentioned a industrial policy problem, popularly say is the central government is not a large number of income for transfer payments and improve nike sneakers, but a lot of government investment (for purpose is to stimulate the economy), such people should be income becomes a reinforced concrete income.
Careful the building Lord may find that income why low three reasons, two will lead to the first after the first article appeared, and can lead to article 3 of article, and not only for the reason of article 1 of the two, and after many other reasons. Why are high prices two reasons why low income is also the first cause of tom ford glasses (the first reason of low income by the first reason: the total social demand is low the economic slowdown the government in order to protect GDP had to stimulate the economy, the price of article 2 high by reason of low income article first cause: 1. The lack of domestic demand to enterprise benefit is bad, the trade mutual default payment; 2. To make the government tax insufficient domestic demand is low, have to improve edhardy shirts).
Since last year, Chinese price rises, blame someone take turns to the New Deal, the quantitative loose directly contributing to the so-called input sex inflation, whether the media or scholars all follow input, seemed to find the prices up main reason.

Generally speaking, the government money first damage is spam, because its people will directly to ordinary people purchasing power, hand wealth shrinks. But in the United States, people can't you feel it price increases, the government's monetary policy is also not affect American life level. Born DuoNian 100 $, cents as nike running shoes of currency in the market, still widely, the stability of the American prices circulation shows one spot.
Previously, Chinese price lower than the United States, the people of the United States to China travel often buy cheap clothes, but now the over many commodities, China commodity prices are higher than the United States, especially the comparability of best basketball shoes, such as famous brand strong Chinese than the United States is generally going to your 30% above, not only the big cities than large U.S. house prices high many, and building quality, even worse than the United States gasoline diesel prices expensive and oil quality even worse. As for the same brand of car on the market in the United States, at least half even cheaper than China, that is, more in China for a Mercedes, BMW in the United States can buy two to three.

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