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...from construction sites throughout what used to be a booming province. Among them is Zhang Dingli, 36, who worked in a toy factory for a decade. But in early November, the plant closed. He is a victim of an economic transition - a move away from the low-end, low-wage, export-oriented manufacturing on which much of China's rapid growth was built - that has been made more urgent by the global economic crisis. As China's double-digit growth rate plummets, thousands of factories are being shut down and millions of workers are being thrown onto the streets. They...

Author: /time Magazine | Title: Wanted: A New Miracle | 12/11/2008 | See Source »

...technocrats in Beijing pull this off? The country has an advantage: it has not yet leveraged its enormous domestic market. The service sector has huge potential. Consider entrepreneurs like Colleen Wang. Instead of employing low-wage metal benders, Wang's ad agency, Rayken, provides jobs for young, middle-class professionals: graphic designers, art directors, a couple of account executives and several copywriters...

Author: /time Magazine | Title: Wanted: A New Miracle | 12/11/2008 | See Source »

FICA is, in effect, a tax on job creation. It applies to the very first dollar earned by a minimum-wage worker, but most of it tops out at an annual income of about $100,000 and doesn't apply at all to income from investments. For most Americans holding jobs, FICA now takes a bigger chunk of their income than the income tax itself. And yet it rarely enjoys the tender concern of tax-cutting Republicans, who prefer to concentrate on tax breaks for capital gains. Cutting the FICA tax in half, for workers and for employers, would make...

Author: /time Magazine | Title: Black Gold: It's Time to Raise the Gas Tax | 12/11/2008 | See Source »

...Factory closures in the manufacturing regions of southern China are now a daily event, and local governments have stepped in to pay the wages of some workers left jobless after bosses have fled. Courts in the Guangdong province toy hub of Dongguan are reportedly working without days off to handle the crush of bankruptcies and unpaid wage cases. Demonstrations by terminated workers have spread fears of economic related social unrest, a key concern for the central government...

Author: /time Magazine | Title: China's Exports Unexpectedly Fall | 12/11/2008 | See Source »

...could not sell the proposed pay and benefit concessions to union members. The strike wound up costing GM, American Axle's key customer, more than $2 billion, according to the company's financial reports. The contract finally approved, though marginally better than the company's first proposal, still included wage cuts...

Author: /time Magazine | Title: Bailout Tactics: UAW Prepares for Its Next Move | 12/8/2008 | See Source »

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