For years China has been the place for cheap labor. But with workers taking home a pittance – less than $200 monthly – of what Americans yield, labor strikes have been springing up like wildfire in August. Foreign multinationals are the target of these outbursts, and the Commie government is happy to displace its people’s anger abroad.While China recognizes that these mega-corporations need China more than China needs them, there is another reason why workers are unhappy.

Consumer spending is the real issue here. Since labor is a resource, it makes sense to want to preserve it, like we do oil. Moreover, exporting labor will drive up prices abroad, which is great when we’re all scared of deflation. As the Economist points out, a 20% rise in Chinese consumption would create 200,000 American jobs alone. In effect,for the world economy to recover, we need Chinese workers to be treated better, and spend more. For that to happen, a stable urban workforce is necessary, as are greater skills and investments in employees to become long term.  That means lower profits, but it also means a more prosperous China.

And don’t worry about cheap labor, India and Southeast Asia are still rife with workers.