The Chinese Juggernaut

Joseph Dillon Davey

Chapter Chapter 5 in The Shrinking American Middle Class, 2012, pp 67-83 from Palgrave Macmillan

Abstract: Abstract The Huffy Bicycle Company spent more than a hundred years making bikes in various American cities, mostly in Ohio. In Celina, Ohio, Huffy paid their 850 workers about $17 per hour—$11 in wages and $6 in benefits—and, as the largest employer in town, Huffy made a substantial contribution to the local economy. Then, over a 17-month period, Huffy closed all their operations in the United States and moved their production to Shenzhen, China. Most of the workers they laid off struggled to find two or three minimum-wage jobs to help keep their heads above water while their jobs were being done by Chinese workers earning between 25 and 41 cents per hour. Some of the bicycles the Chinese workers made were shipped to the Wal-Mart in Celina, Ohio.

Keywords: Foreign Direct Investment; World Trade Organization; Purchase Power Parity; Chinese Student; Purchase Power Parity (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-29507-1_6

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DOI: 10.1057/9781137295071_6

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