Photos: Two bald eagles captured near Penticton Golf & Country Club by
local (Penticton)
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A South Okanagan photographer captured two bald eagles who were being noisy
neighbours this week. On Monday morning, Penticton resident Jodi Forster
encoun...
The Worlds New Middle Class
Image by Getty Images via @daylifeBut how can I be so sure things will get better when the United States economy is in the dumpster, the Canadian real estate market is showing sign of collapse and employment seems to be going now where.
The solution to the world's economic problems, I believe, is the growing middle class in China and India.
China and India over in last 10 years have become the country of choice for cheap labour for the world. Even countries like Mexico have seen factories close to move to a much more economical environment. In addition to savings China and India have focused on something that most countries have ignored, education.
Even though the Chinese currency has gone up in last few months (increasing employment costs) the knowledge of these workers has also increased making the Chinese and Indian worker even more valuable.
So now we can buy the latest technology (ie Apple Ipad) for less than 500 dollars because with the skill of the Chinese workers and their low wages. Of course the out come of this is a shift of jobs from North America to China. So exactly how does this benefit North America?
Other than the obvious benefit of good cheap stuff .... these workers are now demanding better wages so they can buy new cars and nicer homes. The consumer markets of the next 20 years are going to be in India and China. The death of middle class is not happening. It is growing, just over seas.
Check out this video from the New York Times.
So now we know where the future is going, how can we benefit?
First, get educated. You have something to offer in this expanding world economy. Industries with change and to keep your job or to get one will call for a new way of looking a things.
Second, invest wisely. I believe investing now will reap huge rewards over the next 20 years. If you could invest in companies like Coke back in the 1920 would you? A single 20 dollar share today is worth more than 1.5 million.
The world economy will produce many more Cokes. Will you be invested or miss out. Keep in mind you don't have to buy Chinese or Indian companies directly to benefit. Canadian and US companies are reaching and investing in these markets. The potential for growth with less risk.
Third, have some faith. Things are not going to be as easy as it has been in North America over the last 20 years. As world economies start growing the middle class overseas will improve their standard of living but this transfer of wealth will also mean things in North America will go down in the short term.
All you can do is be prepared, get educated and invest for growth. Growth is inevitable ... 500 million families people can't be wrong.
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