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China bans or partially bans Google, Facebook, Twitter... Although I think those IT bubbles are way overvalued, they do generate huge revenues. The motivation is not merely political, but also economic. For example, Baidu has become the second largest search engine in the world due to China's protectionist policy. China also sets a cap for Hollywood, importing 30 movies per year.
America should focus on opening China market for service industry and cultural artifacts.
I got a great set of restaurant grade Oneida flatware at Walmart for 25 bucks...made in China.
A few years ago USA made Oneida flatware was still available at Walmart for the same price.
After it's all said and done, the cost saving for outsourcing to china is often under 10%. Only a fool would assume that small cost savings is passed on to the retail consumer, or would believe that the domestically produce item would necessarily pass all the cost on. The price is already set as close to market maximum.
But what always gets passed on is the social safety net costs and lost tax revenue from the outsourcing.
Meanwhile Germany has 20% of their private sector in unions and manages to kick America's ass in productivity & compensation. Keep buying the line that American workers suddenly turn into lazy slobs once they unionize. Look how well it's done for their wages.
German unions are different than US ones. There is not the adversarial relationship that we have here. Management and labor tend to work together to achieve longer term success for the company. Here, short term shareholder profit is the only consideration and labor is exploited to the maximum extent possible to increase it.
A few years ago USA made Oneida flatware was still available at Walmart for the same price.
After it's all said and done, the cost saving for outsourcing to china is often under 10%. Only a fool would assume that small cost savings is passed on to the retail consumer, or would believe that the domestically produce item would necessarily pass all the cost on. The price is already set as close to market maximum.
But what always gets passed on is the social safety net costs and lost tax revenue from the outsourcing.
China is also building plants in America and hiring American workers. For example, a Chinese company is making subway train cars in Springfield, MA. Such companies are widely distributed from Michigan to Alabama.
If there is a trade war, those workers will lose their jobs too.
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