The Ignorant Investor

There's a story in last week's business week that I read today. You see, we here at ignorant investor HQ favor reading old news over any other kind. It doesn't surprise us and present us with a risk of a bad case of the vapors, by and by.

The story is that India is having trouble recruiting enough skilled workers to handle all the growth in it economy. Thankfully, Uncle Capitalism has stepped up to the plate and encouraged the workers to demand salary increases. Wages for "semi-killed workers in the textile factories of Coimbatore are up 10% this year, while supervisors' salaries have risen by 20%. Pay in the banking industry is up 25% in the past year and has more than doubled in hot areas such as private equity. Overall, Indian salaries will rise by 12.8% compared with inflation of 5.5% . . . with more Indians able to afford cars, tractors, and refrigerators, the countries favotires are expected to need 73 million workers by 2015, 50% more than today."

The faster places like India and China enter the modern age, the better off we are as Americans. Politically, we may end up having to share some of our hyperpower as they grow wealthier. But at least we won't see as many American jobs go overseas because these folk earn 10-15% what their American counterparts do.

One aspect of the job market not mentioned in the article is working conditions. I will bet anyone up to one American dollar that some form of unionization is just around the corner in places like India. It always is once the capitalists start running factories hard at a time of labor shortages. Next up: Indian workers demand healthcare, vacation benefits. Maybe start start pulling the old "I'm at my desk but I'm not really thinking about work" trick.

That's going to be sweet.