Tuesday, January 30, 2007

How is the World Different with (Near) Zero Labor Cost?

A while back, I spent several weeks traveling through China. I came away with one staggering observation--or perhaps I should say question: "How is the world different with (near) zero labor cost?" Westerners hear constantly about the current and future impact of low labor costs in China...and elsewhere. But I found seeing it myself showed a more extreme magnitude than even the media expresses. Imagine driving out of town on a good road that, after 2 hours, turns into a poor road. At the transition sit three men on white, plastic chairs (the sort you might buy for $3 at Target or Walmart). Each has a 3'-long chisel and a hammer. And each is using these hand tools to break up the old road. From the looks of their progress, the three might move a couple of feet per hour. A single front loader could move that distance in 45 seconds. And it's not like China has no front loaders. Needless to say, the equipment to create that Yang Tze dam is massive and plentiful. Using people and hand tools just makes more sense. And that's a terrible example because the "world isn't different." It's just the same old task, but with people instead of machines. OK, here's a better one: a very old traditional building had been painted a bazillion times over the centuries. Apparently the layer of paint four or five layers down was the one they really wanted. So rather than repainting the building that color or stripping the paint off and starting again, an army of people with tiny hammers and tiny chisels was tapping away at the top layers of paint to remove them and leave a particular layer of paint. Again tracking the progress, I'd estimate each person finished 1 square foot every 30+ minutes. A generous soul tells me this is typical of these sorts of preservation projects....but it is staggering to see. And I don't expect to see it done the same way with any preservation projects in Chicago. To trade my anecdotal stories for those of someone with far more focus and time on the subject, I highly recommend "China, Inc." by Ted Fishman (paper, audio)--fascinating and great fun.

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