Less capital being invested, less productive labour and thus lower wages.
Less capital being applied to labour is, other things being equal, going to lead to less productive labour for it is capital added to labour which increases productivity.
Capital is what builds the factories and the mines that people can get jobs in, purchases the machinery that makes their labour more productive and more productive labour gets paid more.
Which means that, as long as there are competing capitalists, greedy for the profit that they can make by employing this newly more productive labour, then wages will get bid up.
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Thus, as productivity rises, as the profits that can be made from employing the newly more productive labour rise, so wages get bid up in order to gain access to those profits.
If they are lower than they are in the US then we can assume that Chinese labour is less productive than US labour.
He pointed out that advancing technology made labour more productive.
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For the very reason US labour is more productive is because it uses more mechanisation.
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It depends on whether the country can put its growing labour force to productive use.
Productivity is determined, in large part, by how much capital is added to that labour making it more productive.
The other alternative is that the capitalist sees that the labour is now more productive, that he can make greater profits from employing it.
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Meanwhile, however, the literacy rate among men of working age has risen to 70%, making the labour force much more productive than in the past.
Even worse, blind efforts to make every firm's workforce mirror the overall labour force can be counter-productive.
Employing more, but less productive, workers lowers the average skill level of the labour force.
Whatever seeds of doubt Labour may have sown about the Conservative plans, its change of tack was probably counter-productive.
Labour costs are more than three-and-a-half times higher than in the most productive areas of China and a good 75% higher than in Malaysia or Poland.
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