I often speak about the leveling out of wages among nations as a long term trend that is happening, slowly but surely - not easily seen in any 1 year, but like a slow erosion. I've said this is *good* for humans as a whole across the globe, as it promotes more equality regardless of where you randomly were born - but for the middle / working class in nations that were above the global mean it won't be quite so nice; while of course it will be a much better outcome for those workers in nations where incomes are below the global mean.

I usually talk about this in sweeping terms as I have read countless stories through the past decade which illustrate this happening - if you choose to look for it. But since I saw this piece last week in the Wall Street Journal on a company I follow relatively closely, Marvell Technology (MRVL), I thought it would provide a great illustration of what is happening in the general economy and why employment is structurally (not cyclically) shifting in the States.

Yesterday:

• Marvell Technology Group Ltd. plans to add staff at its Shanghai design center as the U.S. chip maker experiences increasing demand for consumer electronic chips in China. To meet strong demand in China, Mr. Sutardja said Marvell plans to increase its staff at its Shanghai design center to at least 1,000 by the end of 2010 from 650 now. The company also plans to expand the Shanghai design center's building.

So 350 new jobs in Shanghai in the coming year. But I thought to myself, didn't I just read of Marvell being one of the companies slashing staff to "make the number" one of these recent quarters. So using the powers of the internets (sic) I googled it, and lo and behold - dateline: March 2009

• California's Marvell Technology Group will cut 15% of its workforce, or 850 jobs.
• The job cuts will come from all areas of the company. The firm has imposed company-wide salary freezes, cut some salaries, suspended bonuses and consolidated facilities.

So, 850 jobs gone in March from United States of People Who Make Too Much, and 6 months later, 350 jobs gained in Shanghai.

I am sure these are completely unrelated developments.

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So let's talk about this for a moment. As an investor, I am thrilled - I am able to hire smart people at far lower wages than the Americans I let go, and with a lot less benefits to boot.