Kallog
What would you prefer? That china never made cheap products for America? Where would that leave it? Subsistance farming? Brutal communism? Certainly much worse off than it is today. Now they're so wealthy the government is hoping to create a domestic consumer market comparable to America, as you suggested. That would be impossible without all those exports, and those exports would be impossible without low wages.
in the movie "wallmart the high cost of low prices" a product made in china that sells in a U.S. wallmart for $19.00 only had a combined materials , production , and shipping cost of $0.38 cents by the time it was put on the shelves in a wallmart in the U.S.
what I get out of that is that the chinese people could buy these products , if they were allowed to because they make enought and the price is within their wage range , even with a 100% mark up of the materials , production ,
and including the shipping cost that woud not be necessary
they could sell the product for $0.76 cents U.S.
but they couldnt afford to buy the product for the $19.00
that it sells for in the U.S.
heres the real dangerous part.
there is no way that a factory in the U.S. can build that product for $0.38 cents.
if a factory did try to start up to build that product and compete with wallmart then given that wallmart has a 5000% markup on that particular product all they would need to do is keep dropping their prices until the new company folded up its sidewalks and closed the doors.
which is what they do.
those exports would be impossible without low wages
I can see $18.62 cents per each product produced including its shipping that would allow for higher wages in china that would also allow for new buisnesses to start up in other countries to produce this particular product.
so Im not falling for that one.
However they could certainly improve things for people, at the expense of economic growth by allowing their yuan to appreciate rather than keeping it locked to the USD. This would stealthily make all Chinese richer and Americans poorer without causing a riot.
its all connected if the chinese leverage their monetary system then there will be less products purchased from china so both would suffer.
but the U.S. wouldnt suffer long , if the sun comes up the next day the buisnessmen will find ways to make more money.
thats what they do.
Well my main point is that it's really wrong to take a job from a poor person and give it to a rich person, simply because you imagine the poor person doesn't want their job. Americans lost their own jobs by demanding too much pay!
Americans lost their jobs because the buisnessmen decided they could make loads more money if they deserted the American people by producing the products they sell to the American people in other countries.
