As we all know most of the junk we buy in America was "made in China." Having this lowers the price of that product because in China they pay workers close to nothing. At the same time many of the American "low wage working class" or aka uneducated trash people, complain that they would have a job if more of our crap was made here. Truth is most peole don't care where the product was made, just how much does it cost. Also if our education system was not so poor and people would study for a test in college more than 10 minutes, then America would not have all these idiots walking around.
usually, higher production costs leads to better quality.
because it costs so much to make the products, the quality becomes better to make up for the fact that fewer can be made.
Probably the most important productive input is labor, that means that the industries prefer to be in places where the wages are quite low.
Which makes it right for them to take advantage of another country's underdevelopment instead of giving jobs to the people who buy the product?
when a company is efficient is also effective
which is good for the nation that they operate in. not ours.
it obviously did, because China's economic growth hit 8% last year.
lol I know that, knowing that is not something I have to learn about by visiting China.
The main reason their economy grows more than ours is because they're not being nearly as ecologically-inclined. Also, since they're a less developed nation they have more room to grow -- the US economy can only grow around as much as technology allows.
Once they start being nicer to the environment, they will grow slower.
The relationship enables both nations to experience economic growth. The US borrow money from China. They use this money to buy cheap goods from China, at the same time the US experiences economic growth due to the increase in real income due to the relatively low price of the good. China uses the money to continue manufacturing these cheap goods. This creates jobs and causes their economy to grow.
However, relationships like this are dangerous for the rest of the world. In both cases the growth is based on consumerism, (not to the same degree in China, but still a large amount), on average 70% of it. People spending more than their income.
If the US stops buying the goods, or China stops making them, it would have massive, negative ramifications for the rest of the world. World trade would drop, there'd be massive unemployment.
It's ok for the moment, however I'd rather see economic growth that was less heavily dependent on consumerism, and more heavily dependent upon efficiency.
at the same time the US experiences economic growth due to the increase in real income due to the relatively low price of the good.
at the same time the US would experiecne greater economic growth if the nation as a whole would be payed more. Picture our unemployment rate if all US companies are producing in the US. Then, because of that, picture the US economy with more than 2.3 million jobs extra. People would have more income to spend on slightly more expensive goods which generally have higher quality anyways.
It's ok for the moment, however I'd rather see economic growth that was less heavily dependent on consumerism, and more heavily dependent upon efficiency.
Yes, there should definitely be some change. I'm not saying we need to leave China without any source of jobs, but a gradual restoration of US jobs is not going to kill anyone.
Yes, there should definitely be some change. I'm not saying we need to leave China without any source of jobs, but a gradual restoration of US jobs is not going to kill anyone.
No. But it probably won't be beneficial for most Americans if mass manufacturing returns to the US. If you really want to grow and become efficient, educate your workforce so they can take part in the tertiary sector.
Learn from the UK's example. The Unions had too much power and perpetuated the production of goods like coal which was much cheaper to do abroad. British industry became very inefficient as a result. The same would happen in the US. If the US focused on manufacturing no one would buy US goods, because Chinese goods would undercut them so much. Better to focus on your strengths and carry on trading with China.
No. But it probably won't be beneficial for most Americans if mass manufacturing returns to the US. If you really want to grow and become efficient, educate your workforce so they can take part in the tertiary sector.
there aren't unlimited office jobs.
Better to focus on your strengths and carry on trading with China.
Yes, but not as much as we have been recently. If all US factory jobs are lost to Chinas, there's a huge problem for the US.
lol I know that, knowing that is not something I have to learn about by visiting China.
No i was saying that is why it is different, obviously you havent even seen china's new working conditions even in sweat shops, so that is why I am telling you to realize your mistakes while you still can instead of digging deeper in attempt to pretend you werent wrong.
Which makes it right for them to take advantage of another country's underdevelopment instead of giving jobs to the people who buy the product?
The Secondary sector companies are moving there, cause here the profit margin is not satisfying. Nowadays the big countries have a very strong Tertiary sector and mostly there are hired new employees. Red this is very interesting On the measurability of offshorability
You know, all the products that are made in china, are AMERICAN/EUROPEAN run companies who use chinese workers as a cheaper means to produce goods? yea. Bet you all didnt know that, or read about the smiley curve.
I did know about the origin of the companies but what on earth is the smiley curve?
*5 min later*
Not at all surprising. Interesting way of putting it. Most people know that the little brand sticker that is put on anything is one of the costliest parts of the merchandise.
