2010年5月16日星期日

Would this be better for the U.S. economy?

Instead of buying imports from China and other countries and having import inspectors on payroll and all that is involved in imports, the U.S. can make most of it's own products. This would create jobs here, decrease our unemployment rate, we would be able to control how things are made and the prices, etc. We shouldn't have to worry about illegal things coming in the shipments from imports, any tainted products from foreign countries, etc.





I ask because 99% of my son's toys are made in China and he has coloring book that came with a box of 6 crayons. Four of those crayons has 'Made in China" on them and the other 2 has "Made in Mexico". He asked me why can't China make yellow and green crayons; plus, why can't Americans make crayons. I have no answer for him. Do any of you?





I know imports/exports is all money based. But with our unemployed %26amp; the cost of importing, why can U.S. make it's own crayons %26amp; toothpaste %26amp; hairspray %26amp; shoes?

Would this be better for the U.S. economy?
The easiest answer as to why the US does not make its own items that you mentioned is because the majority of American consumers would rather pay a cheaper price for foreign made goods than the higher price of American made goods.





The cost of doing business in the US is astronomically higher because of compensation, tax, safety, and environmental regulations. Labor costs are dramatically higher here, and that affects every aspect of manufacturing, from the production of the raw material, its transportation to the factory, to the manufacture of the product, and its distribution. It is exponential.





We all want to make at least 50K a year but still only pay $.99 for a box of crayons.
Reply:You might wanna try this book:





Pop Internationalism (1 March 1996) (ISBN 0-262-11210-8) , by Paul Krugman





which should explain a lot better than me what's wrong with your reasoning.





The US could certainly make crayons, but it's probably better for the US to use its ressources to produce microprocessors, softwares and nanotechnologies, rather than crayons, because the R%26amp;D and the general skill level of the workers allows it.





It's true that trading with China (microprocessors for crayons) destroys "crayon-based" jobs in the US, but it creates jobs (and a lot more wealth) in the microprocessor industry.


That's too bad for the US crayon-maker who doesn't have a job anymore, you could say, but it's usually considered that benefits from international trade are far higher than those collateral damages.


I tend to agree with that, but only if there are many mechanisms (usually based on education and reconversion programmes) to make sure the crayon-maker can become a microprocessor-maker in no time. The problem being, of course, that's it's quite difficult to do that with unskilled labour.





That's for the heartless economist's views, but I also have views as a citizen, and I definitely think local businesses (not only in the US) should be encouraged, but they should be encouraged to produce innovative and quality products, and not be protected if they have no way to compete (innovation and quality are probably the best way to get competitive edge).


This is even truer when it comes to food, and I subscribed myself to a Community Supported Agriculture programme here in Germany.


And I totally agree with the views on products made using non-union labour, they should be boycotted.
Reply:I personally agree with you.... we are going to out source ourselves to death. Eventually their will be no jobs in the USA for Americans. Everyone thinks out sourcing is so great and ignores the large amount of poverty in the USA. The richer keep getting richer. I personally try and spend more to buy USA made goods and I don't shop at Walmart or other places that use NON Union work. There are lots of American made product out there... you just have to look for them and be willing to spend an extra dollar or two.


Teach your child the importance of buying American made now!!! To many people are self center and don't consider that their actions and shopping has an impact on our country. Everyone wants cheap..... I say get quality.
Reply:producing yourself is a good way to give the economy a boost. look at germany under hitler before the second world war. hitler motivated people to work for their country (using ome wrong incentives) but it did get the country back on its feet after many germans not being abel to buy a bread with 1000000 mark.





as for the crayons: it might be because the colouring agens in children crayons are usually natural colouring agents (since children might want to eat them and we want to keep them safe)





i have no sources to back this up, but it might be so that some natural colouring agents are not available in china, or cheaper in mexico, and companies therefor produce them there.





as for the making it ouyrselve, many americans no longer dream for a carrear in hairspray making, they want to be astronauts, scientists, bankers etc.
Reply:costs of labor..costs of production of goods and materials..


imports are in demand cause the goods/services are available for the right price and quality.


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