Trump Wants To Bring Manufacturing Back To The USA; However Would You Be Willing To Pay A Lot More For Goods? (companies, cost)
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Do want you want to pay people to make Redwing boots a decent living that can then afford $300 boots or one person a low wage to stock the shelves at Wally World with Chinese made boots?
Believe me i would love people to make a decent living. However, i just don't think i could afford an iPhone at $2000.00.
I don't believe this for a second. I've used this example before. No, one example does not make for the norm but........
I went shoe shopping with my wife. I picked up a pair of plastic shoes. $50. Made in China. No one can convince me that we can not make plastic shoes here profitably at $50. At one point this might have been different but that is how it works.
The jobs leave and along with it the competition and prices go up. I also bought a portable heater not long ago. The one I bought was made in the USA. It was no more than the made in China ones.
That's not necessarily true especially when you consider things that can affect the entire world. Coal plants here in the US are much more efficient and much cleaner. Mercury for example will increase as production goes to China, even before the recent regulations US coal plants accounted for less that 1% of the global pool. About 50% is produced from Asia, primarily China. Mercury pollution is not localized.
If CO2 is a concern to you China has a carbon intensity about double the US, that means products made in China are going double the CO2 emissions compared to those made in the US. That's before you factor in increased emissions for transportation.
I don't believe this for a second. I've used this example before. No, one example does not make for the norm but........
I went shoe shopping with my wife. I picked up a pair of plastic shoes. $50. Made in China. No one can convince me that we can not make plastic shoes here profitably at $50. At one point this might have been different but that is how it works.
The jobs leave and along with it the competition and prices go up. I also bought a portable heater not long ago. The one I bought was made in the USA. It was no more than the made in China ones.
The heater was likely just assembled here, and being a firmly shaped device of routine, rectangular shape, that would be easy to do with an automated machine, avoiding most US labor content. US mfg has gotten terrific at sharply reducing labor content per unit requirements via automation. Not sure that can be done with boots or shoes due to irregular shape, flimsy material, etc.
I haven't read anything about this yet. But the first thing that would need to be done is to give many many business tax incentives that have been taken away over the years. Stronger employment credits for instance. It's hard for a business to want to stay here when the cost of building overseas is so much cheaper. And the public doesn't seem to care enough about quality (in general) to spend 50% more for the same item if it had a Made in USA stamp on it.
The heater was likely just assembled here, and being a firmly shaped device of routine, rectangular shape, that would be easy to do with an automated machine, avoiding most US labor content. US mfg has gotten terrific at sharply reducing labor content per unit requirements via automation. Not sure that can be done with boots or shoes due to irregular shape, flimsy material, etc.
We can profitably make $50 plastic shoes. The heater was manufactured here.
I I also bought a portable heater not long ago. The one I bought was made in the USA. It was no more than the made in China ones.
Here is a direct quote from an acquaintance of mine that makes coal stoves. To put this into perspective this was summer of 2008 when energy costs were sky rocketing and he had about 6 months of back orders.
Quote:
In January a company came to me about having all of our stoves made in China. They would be shipped to LLS boxed and ready to sell. This at a much bigger profit than I could ever make working the way we do. THIS WILL NEVER HAPPEN AS LONG AS I OWN LLS. I DON'T CARE HOW FAR BEHIND WE GET. THANKS.
This is a small company that employs perhaps 10 people. He's stand up guy but actually has this option because there is no foreign competitors in his market. If one of his competitors takes this deal then what?
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