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The Return to a Deflationary World post COVID: Eric Basmajian

Inflection Point

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The Impact of Global Free Trade on China's Wages

We have subsumed a large portion of their labor force into our own, right? We've just moved our manufacturing over to a cheaper labor pool. The relationship with china is obviously probably the most important in terms of global makeral relations. If companies had to start paying much higher wages in china, i would think, based on the trends, that corporate margins would decline. That's going to reduce corporate margins, which would have negative knock-on effects in the us.

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