How does exporting higher profits to China help America exactly?
I suppose the theory is: pay American service workers more, so that they can buy more Chinese goods, so China can become wealthier and build more factories and employ more production jobs, while America gets poorer by continuing to expand its service sector (consumption jobs). Interesting theory.
It doesn't appear to be supported by anything in reality though. Personally my expenditures go to primarily to housing, utilities, travel and food. I'm not sure how any of those boost China's economy directly - Wells Fargo is probably quite heavily invested in China one way or another though.
This "average" consumer spending infographic would appear to back that up. http://www.billshrink.com/blog/1204/consumer-income-spending...
It doesn't break down along income lines which is unfortunate, that information would inform discussions around minimum wage much more. I did find the age break down interesting though.