Recent decisions show China will not raise wages enough

I have written lately about the how the cultural economics of China will fail to raise wages of labor and thus fail to re-balance their domestic demand. A video interview with Minqi Li by The Real News Network notes that recent decisions by the Chinese government are meant to raise income for the owners of capital and not for labor.

This comes as no surprise. China may talk about raising wages for labor, but in the end they will push forward to make the rich richer. The same is happening in the West, but in China there is even less respect for labor. Eventually their economy will have severe troubles.

Watch around the 4 minute and 5:30 points for a discussion of labor issues.