Originally Posted by BDP

Sooner or later there will be a revolt in China. This is why the Chinese government is forcing factories to double the wages over the next 5 years.

There is no secret to the Chinese's success. It doesn't take an entrepreneurial genius to get rich buying something for a penny and selling it for $10. The factory owners paid their employees less than $100/month and fed them a bowl of rice a day, all the while they are pocketing the enormous sums of money coming in via massive orders from international corporate giants. So while 99% of the population can't afford to purchase a modest home with their entire life's wages, and their boss is driving to work in a $200k car, something has to give.

It is the Chinese's arrogance that will be their downfall. Much like the Japanese, the Korean, and the Taiwanese, their success was not a result of business genius but more a result of them being many steps behind economically. Once the competitive advantage is gone and there is an equal playing field all of a sudden they aren't so smart and their growth all but stops.

The question is in China (and India) what will happen first..? Will the wages catch up and their growth slow allowing a middle class to rise, or will the people get fed up and revolt before that can happen..