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    Whilst wage imbalance will never be eliminated the gap between East and West will diminish, as is already evidenced in China, where upward wage pressure due to rampant Western style consumerism is making them less competitive and seeing cheap manufacturing demand move to other countries. There is only so long this merry-go-round can continue before the marginal value accrued by lower wage manufacturing is eliminated through shipping costs etc. at which stage demand will start to move back westwards.

    The fallacy of the policy approach from most right of centre governments is that without directed expenditure to boost either private sector job creation or the creation of public sector roles we will actually see a short to medium term rise in expenditure due to benefit demand or a significant increase in poverty if a cap is placed on the benefit budget - frankly neither is civilised or acceptable

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