View Full Version : China's Outsourcing Appeal Dimming
BMT (RIP)
09-08-2008, 03:24
http://www.washingtonpost.com/wp-dyn/content/article/2008/09/07/AR2008090702262.html?wpisrc=newsletter
:D
:lifter
BMT
Great news! Thank you, Sir!
Made in the USA is good for keeping Americans employed, but may result in up to double the retail cost for consumer goods.
"Made in the USA is good for keeping Americans employed, but may result in up to double the retail cost for consumer goods."
Agreed, but its going to be a price worth paying. Sending our raw materials to China and getting cheap disposable goods back is a bad trade. One of the upsides of a weak dollar is that manufacturing will return here, but I would like to see the US specialize in goods that other nations are incapable of making.
I would like to see the US specialize in goods that other nations are incapable of making.
such as?
Slantwire
09-09-2008, 07:26
such as?
I'd assume he means high-end electronics, polymers, textiles, etc. Do you want the next greatest thing in body armor to be made by Weigiao rather than Dupont?
Matta mile
09-09-2008, 08:47
Good Stuff- Thanks
Made in USA permits the beneficiaries to expand back through factories and the variety of "support troops" needed to keep mfg ops alive rather than the one dimensional benefit which is currently the norm with offshore produced goods benefiting mostly the retailer organization.
With China's government ceasing to pay out a percentage of sales to those Chinese mfgs shipping to America coupled with fuel costs and the growing consumer base within China, some Chinese mfg firms themselves are looking to India now for cheaper operations ability. In any event, I hope things evolve and put the US back into the position of having more than just Government and Service industries on the grow.
MM
I'd assume he means high-end electronics, polymers, textiles, etc. Do you want the next greatest thing in body armor to be made by Weigiao rather than Dupont?
You assumed correctly. It is not beneficial for the US to make every little thing. We will profit more if we use our labor force for goods that we have an advantage in producing. Making mickey mouse watches in a plant in California would be a stupid waste of resources. Let the Chinese-Pakis-etc make that sort of junk. The US has the ability to focus on high end, hi-tec goods and should maintain the cutting edge on that front.
America has long been the premiere source of innovation. It might make someone feel good that their favorite relative gets to keep his job at the plant, but if he is making goods that are cheaper made in the 3rd world, then its a waste. My brother works in canning. His jobs are always moving overseas. His choice is to move with them, or learn a new trade.
I don't like the idea of NAFTA. I hate going to the grocery store and not being able to buy produce from my state. It disturbs me to hear reports of the Chinese stealing our steel and copper but the simple economic truth is that the US will be in better financial shape if it maintains the industries in which it has an advantage. If the US ever has an advantage making spatulas and key chains, then we are in serious trouble.
Agreed, but its going to be a price worth paying. Sending our raw materials to China and getting cheap disposable goods back is a bad trade.
As you mentioned later, this is only true for manufacturing goods in which we have a comparative advantage. Cheap, disposable foam flip-flops, shirts and toaster ovens (as examples) don't fall into this category.