OK, send in the hate mail! I wrote an essay in this week’s magazine on how China and India will come to create jobs for Americans, Europeans, and just about everyone else, not “steal” them, as they are often accused of doing. I know at first reading, such an idea might sound completely ridiculous. China is sucking up manufacturing jobs from around the world. Indian engineers and IT specialists are battling it out with U.S. college grads for jobs in software development and R&D. With wages so much lower in China and India than in the U.S. and the rest of the developed world, how can the average American, Brit or Japanese ever hope to get a job offer?
My argument, however, is that the wealthier China and India become, the more and more jobs they will create globally. That will happen in two key ways. First, Chinese and Indian consumers and companies will become increasingly influential spenders in the world economy, providing new sources of demand and thus jobs. Secondly, Indian and Chinese companies will become ever greater investors around the world as they expand their operations globally, creating jobs wherever they go. I expand on this further in the magazine story, but I wanted to add a few extra thoughts here on how China and India will influence job markets, especially in advanced economies. Continue reading