Might these be the reasons why American workers can't afford our services?

Started Aug 16, 2012 | Discussions thread
Veteran MemberPosts: 7,120
Re: Might these be the reasons why American workers can't afford our services?
In reply to SunnyFlorida, Aug 22, 2012

SunnyFlorida wrote:

28to70 wrote:


WOW, That article was crap! I guess any yahoo with $400 bucks to buy a PC from wal mart can write their own doomsday articles and publish them on-line.

Also, his sources are so solid for example "one college proffesor estimates...." geez, you couldn't even get the professor to release his/her real name or college? lemme guess it's professor MaGoo dean of the western montana school of cosmetology.

what a joke

Actually, not naming sources is common in reporting, for a variety of reasons--the professor may be afraid of losing his job, for instance.

As far as I can see, the article is reasonably accurate, but, as with all such articles, it implies that just dropping wages for American workers would bring the jobs back, along with implications of other events that are also not sensible. The jobs will move from China to the lowest paying country soon: in fact, many still have. This is a constant in history, ever since manufacturing outside the village smithy or furniture shop began.

When I was a kid, a million years ago, "Made in the U.S.A." was a proud statement on clothing and other items. At no point were clothing jobs overpaid: it was grueling work, even though most was done sitting down. Yet, clothing manufacture was among the earliest to move out of the U.S. Why? Well, manufactures found they could get maybe 60% of the quality of the made in the U.S. garments from other countries, mostly China. The kicker was the fact that a pair of jeans, selling then for $15, cost about $3-$4 to make in the U.S. and $1 to make in China, including shipping. Later, the realization that designer labels on the butt pockets added value, (why I can't explain) with the only cost being to a designer in a small royalty per pair, manufacturers began to sell those 15 buck jeans for nearly 70 bucks, while expending no more, with the royalty, than $1.50.

And so it goes. It ain't the worker being overpaid, in other words.

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