Because your point is that the wage gap between the US and Chinese household would close significantly - yet it does not.
Even with those multipliers, the wage gap between your median Thai and Malaysian household and your median Chinese household is significant, let alone with an American household.
The wage gap cannot be solved until there is a serious expansion in China's social safety net if China wishes to continue to use a production driven growth model.
This is what Japan, Germany, the US before Reagan, South Korea, and much of Eastern Europe did when they reached similar developmental precipices to China today.
China can see a significant jump in living standards similar to that which Poland saw over the past 15-20 years if the social safety net is expanded.
Even with those multipliers, the wage gap between your median Thai and Malaysian household and your median Chinese household is significant, let alone with an American household.
The wage gap cannot be solved until there is a serious expansion in China's social safety net if China wishes to continue to use a production driven growth model.
This is what Japan, Germany, the US before Reagan, South Korea, and much of Eastern Europe did when they reached similar developmental precipices to China today.
China can see a significant jump in living standards similar to that which Poland saw over the past 15-20 years if the social safety net is expanded.