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Originally Posted by dcarson
A earlier prosperous India would have a similar effect that China has been having. More demand for thins like oil and other tech economy commodities would be more expensive. This would change development world wide. Maybe more nuclear power maybe space based solar.
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Would manufacturing from the US flee to this India, like it has to China? This India would be democratic, and maybe not a one-party democracy, but they certainly wouldn't be as command driven as Communist Party ruled China. Workers would be less inclined to accept low wages and working conditions, although they certainly wouldn't be at as high a standard as in the West. Indian manufacturing would still be cheaper than in the US, but not by such a large factor.
If India is a Commonwealth country, or just a closer ally to Britain, that still adjusts the balance of power during the Cold War to the Western side. There might not be that big an incentive for Nixon to open relations with China in 1972. Or his still might do it, but there won't be that much of shock to the economy. Or the economy already took the shock back in the 1950s, with the Rust Belt starting a decade early. But at a milder level and a longer adjustment to post-industrialism in the Amerian north. China on the other hand does not experience the tremendous growth, and it siphons as much of the manufacturing base from India as it does from anywhere else.