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Absolutely, but people do need a government. Look at what happened in Russia in 1990's, when it became the world's most liberalist country. It was a disaster.
Consumers almost always choose the cheapest product, despite anything else. In case of today's America, cheapest usually means imported. And imports is a major cause of your economic troubles.
We are not russia. I prefer to look what happened with our own revolution.
So you think the state knows whats best for consumers?
If people always choose the cheapest, how do you explain the presence of Cadillacs and other luxury items in the market place?
A pair of jeans - FOB $10-$20, at retail - $30-$100. How much would retail prices change, if that jeans were produced locally at $20-$40?
I'm not asking about the changes to the economy, because they should be obvious.
Many bix boxes sell jeans for under $15, so mfg cost is under $5. Our US made cost would , no doubt, exceed $30 mfg, which would mean a pair made equally well to the $15 pair at a big box would cost in excess of $50 with distribution costs. In short 3.33 times the cost , best case scenario.
Many bix boxes sell jeans for under $15, so mfg cost is under $5.
It's about $2.5. But I meant designer brands, like Victoria's Secret. I understand that it's not what most Americans wear, but it makes my point better
Quote:
Our US made cost would , no doubt, exceed $30 mfg, which would mean a pair made equally well to the $15 pair at a big box would cost in excess of $50 with distribution costs. In short 3.33 times the cost , best case scenario.
Switching to domestic production will lower marketing and managerial expenses - because that will be the only competitive edge remaining, and some companies will surely do this, forcing others. Retail cost will remain about the same.
But jobs will be created, and U.S. will no longer have to send $15 abroad (multiply that by whatever the multiplication is in your economy!).
It's about $2.5. But I meant designer brands, like Victoria's Secret. I understand that it's not what most Americans wear, but it makes my point better
Switching to domestic production will lower marketing and managerial expenses - because that will be the only competitive edge remaining, and some companies will surely do this, forcing others. Retail cost will remain about the same.
But jobs will be created, and U.S. will no longer have to send $15 abroad (multiply that by whatever the multiplication is in your economy!).
Expensive designer stuff is boutique mfg, small runs, does NOT add many jobs. The major brands cannot make it here and hit an acceptable price point. The US consumer is not going to buy a $50 pair of Wranglers made here, over a $20 pair made in Asia. As of now, the $20 pair is available.
That's exactly my point! Now lets view this from the economic perspective.
Imported pair costs the economy $10.
Domestic costs $20, but they stay home.
Let's stick to the mins, and consider that productive industry doubles the GDP. We'll get:
$10*2 - $10 = $10 for imported product.
$20*2 = $40 for domestic.
It's a no-brainer, isn't it?
It is. Keep importing it. Otherwise, the extra $20 spent on jeans is NOT available to spend elsewhere.
Think! That $20 spent elsewhere is also supporting jobs.It may be the restaurant near a Wal Mrat patronized with the $20 saved versus your inflated jeans pricing scheme.
It is. Keep importing it. Otherwise, the extra $20 spent on jeans is NOT available to spend elsewhere.
There are no $20 extra if you import - only $10 vs $20 if you produce.
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