On Tue, 18 Jan 2005 10:39:50 -0500, ben carter
wrote:
I recently was shopping around to have a product of mine manufactured.
Reality check:
To have it made in China with semi-skilled labor was $1.60 per hour.
The exact same job here was $21.00 per hour. You do the 2nd grade math...
The point was made to me if I like being able to afford the things I own
then they have to be made elsewhere. Period. No US manufacturer can touch
that. Most everything you own was made this way. Tough luck if it's
substandard.
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Underlying problem is that the US economy has become so baroque,
arcane and complex that the true life-cycle cost of anything is
almost impossible to calculate. The $1.60 v. $21.00 per hour
labor cost is only part of the up-front surface cost.

Productivity, or what you get per hour is an important factor,
but on a macro economic basis, consider that if the product is
manufactured overseas, the wages paid do not circulate in the
local (US) economy, US sales and income taxes are not paid by the
worker, US social security taxes are not paid by the worker and
employer, and the employer/factory does not pay US property taxes
which are the main revenue sources for el-hi education and local
social service such as police & fire. This leads directly to
governmental revenue shortfalls at all levels.

Because the goods are imported rather than domestically
manufactured from domestically produced materials, the current
account trade deficit is increased.

The affects/effects are even more serious in the longer term.
The informal US manufacturing infrastructure, consisting of
mutually supporting companies and individuals is destroyed, as is
the knowledge base and talent pool. This has serious national
security implications. Any economy, which can no longer make
simple mechanical devices such as washing machine timers and
alarm clocks, can't domestically produce BLU-3, proximity or
mortar fuses.

What is good for the individual in the short term may well be
disastrous for the community in the long term. One way or the
other, the full cost for all goods and services is always paid.
The only question is who is to make the payment and how much the
late fee will be.

GmcD