You know the story.
American executives spent the last ten years offshoring millions of American manufacturing jobs to China and other Third World locales, thereby gutting entire American communities.
But in the back of my mind I thought to myself, their time will come. Soon, the Third World will start producing managers and executives who are able to match American executive’s underwhelming performance at a 1/4 of the cost. And when that happens, we will all be able to engage in an enjoyable session of Schadenfreude.
Well, it seems I was wrong. I read a recent article in Forbes that reported that Chinese professionals make almost as much as First World professionals. For example, Chinese General managers make between $130,000 – $330,000 a year while Chinese Chief technology officers make between $167,000 – $330,000. So, American executives won’t be replaced by Chinese executives in order to improve their firm’s bottom line.
Still, there might be other reasons, aside from salary savings, that would justify hiring the Chinese executives. First, they would be far less likely to pretend that they were just like all other Americans even though they make way more money then most of us since even they would have to admit that they weren’t American, but rather Chinese. Second, Chinese executives and their spouses would probably be far less likely to engage in typical really stupid pastimes of rich American executives such as dressage, around the world yachting or ice sculpting. Finally, Grover Norquist would probably be less outraged if Chinese executives paid the 22% tax rate on their income that most of us do, rather than the 15% executives pay by having their income masquerade as capital gains in the form of ‘carried interest’, if the executives who would be subject to the 22% tax rate were Chinese. Then again, maybe not.