Good post kennethgalbraith. And add to that many of the educated classes in those poorer countries really aren't on such bad wickets. A $20K to $40K middle class salary really does go a long way in China, Thailand, Philippines.
At the end of the day if EVERYONE earns less the net change in cost of living isn't so bad after all because labour costs across the board decrease. You're paid less but you also don't have to pay as much to other service providers. Your mechanic charges less for his labour, his parts provider charges less for parts, his rent is less, his grocery bills are lower (the shelf stacker, checkout chicks were paid less, the fruit picker...) etc, so he basically doesn't have to screw as much out of you.
Something has to crack in our economic system for this merging with poorer countries to take place without leaving tragic victims who incur 1st world costs but 3rd world incomes. The other mob often have it vice versa!
