(02-22-2012 04:18 PM)ImMoreAwesomeThanYou Wrote: (02-22-2012 04:17 PM)vandiver49 Wrote: (02-22-2012 03:10 PM)ImMoreAwesomeThanYou Wrote: (02-22-2012 03:07 PM)Machiavelli Wrote: So why do we trade with them? Why wouldn't we trade with countries that enjoy our standard of living. We opened the box. Time to close it.
an iPad produced here would cost $2000
a HDTV produced here would cost $5000
Americans like their cheap goods...we can't close it
Though using technology is a poor example (since tech prices always trend downward) your point is nonetheless accurate: American's would balk at the price. But there are numerous items that we are already paying a 3-400% mark-up on without blinking (bottled water and Nike's come to mind)
So is it possible to convince American to pay a little extra to be secure in the knowledge that the products we want were produced in places were standards were to our liking? Yes, but currently no brick and mortar company would be able to withstand the 3-4 years of losses that such a strategy would incur.
This is an area IMO that is primed for takeover by Internet/automated processes. Small-scale publishing and clothing are two areas that are already seeing progress with regard to this. If a machine can achieve a manufacturing success rate of 70-80% (i.e. good enough) then that items creation will become automated.
Basically what you're saying is..."America isn't a business friendly nation". I agree.
OK, here's the problem raised by the points IMATY makes. If that iPad would cost $2000 if made here and the HDTV would cost $5000 if made here, we could protect US manufacturers by imposing tariffs to bring the price of products made in China up to US levels. We'd take some heat but we could probably make it stick.
But here's the rub, China can make the iPad or the HDTV for a bunch less and still compete here with the tariffs. And evey other country in the world, the US iPod and HDTV cost the same as they cost here, but the Chinese iPad and HDTV cost a bunch less. So that US manufacturer can't compete with his Chinese competitor anywhere but the US. And because the Chinese company has a much bigger market (the world) it can do things to compete that the US company cannot match. And that ultimately means that, even with the tariff protection, the US company can't stay in business.
What we have to do is find places that US companies can compete, or can compete if we change some things, and then make those changes so they can compete. Large-volume, low-margin consumer goods isn't that place. So let China make them and they will be cheaper for US consumers. No point in making US consumers pay way above world prices if it doesn't accomplish anything in the end. And we can use persuasion to try to get China to improve working conditions, but US TV shows that come in by satellite and show the Chinese that it doesn't have to be that way are the most persuasive tool we can use.
Take the things that Germany is doing to be the second largest exporter in the world. We can match them. They don't have the advantages over us that China does. And what they're making--high end, high profit, big ticket items--is what we want to do anyway, since we can make more money doing that.
In short, become a business-friendly nation again. That won't let us compete with China, but it will let us kick Germany's ***. And that's good enough, plenty good enough.
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150 workers at Foxconn threaten suicide to improve working conditions
