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There's something wrong with the cost structure in "Advanced Economies". It's just too cheap to make things in China. There are some products where the cost o

There's something wrong with the cost structure in "Advanced Economies". It's just too cheap to make things in China. There are some products where the cost of the raw materials would be more expensive in the U.S than having the finished product shipped from China. There are sky high costs, and nobody can figure out where they are coming from and everyone just shrugs their shoulders. This kind of thing happens in healthcare and education too. Has anyone in manufacturing looked at the financials of a Chinese manufacturer with low unit cost? Where does the money go or not go that makes things so cheap?

zeveb 11y ago
> There's something wrong with the cost structure in "Advanced Economies". Yes, and that something wrong is taxation and regulation (which is a hidden form of tax). Those things are both absolutely necessary, but they greatly inflate the cost of goods and services. What's more, they tend to be well-hidden in order to prevent people from generally revolting.
- wavefunction 11y ago
  I like regulation. I see these articles about people in China suffering from severe asthma and entire major cities where you can't go outside due to the haze of pollution and I thank my lucky stars our forerunners had the decency and common sense to think of the future and not just short-term bottom-lines.
  - mikeash 11y ago
    I visit China every couple of years and I completely agree. The terrible air quality is the worst thing about Beijing. But it does explain a decent chunk of the cost disparity. The Chinese (or at least the government) are willing to pollute the crap out of their air in order to better compete, while we are not. That doesn't mean we should join them, but it does explain their lower costs.
  - zeveb 11y ago
    > I like regulation. Hence my comment that it's, 'absolutely necessary.' But it has costs, and not every instance of regulation is absolutely necessary. > I thank my lucky stars our forerunners had the decency and common sense to think of the future and not just short-term bottom-lines. Look at photos from the 1970s. The reason we're as well-off now as we are is precisely that our forerunners weren't focusing on long-term cleanliness and instead focused on short-term profits at the expense of the environment. Then we got rich enough as a society to afford to clean it up. Note, too, that not all regulations are environmental. Look at how difficult it can be to hire a contractor in some states, or the amount of money a small business must expend to be in regulatory compliance.

zeveb 11y ago

> There's something wrong with the cost structure in "Advanced Economies". Yes, and that something wrong is taxation and regulation (which is a hidden form of tax). Those things are both absolutely necessary, but they greatly inflate the cost of goods and services. What's more, they tend to be well-hidden in order to prevent people from generally revolting.

wavefunction 11y ago
I like regulation. I see these articles about people in China suffering from severe asthma and entire major cities where you can't go outside due to the haze of pollution and I thank my lucky stars our forerunners had the decency and common sense to think of the future and not just short-term bottom-lines.
- mikeash 11y ago
  I visit China every couple of years and I completely agree. The terrible air quality is the worst thing about Beijing. But it does explain a decent chunk of the cost disparity. The Chinese (or at least the government) are willing to pollute the crap out of their air in order to better compete, while we are not. That doesn't mean we should join them, but it does explain their lower costs.
- zeveb 11y ago
  > I like regulation. Hence my comment that it's, 'absolutely necessary.' But it has costs, and not every instance of regulation is absolutely necessary. > I thank my lucky stars our forerunners had the decency and common sense to think of the future and not just short-term bottom-lines. Look at photos from the 1970s. The reason we're as well-off now as we are is precisely that our forerunners weren't focusing on long-term cleanliness and instead focused on short-term profits at the expense of the environment. Then we got rich enough as a society to afford to clean it up. Note, too, that not all regulations are environmental. Look at how difficult it can be to hire a contractor in some states, or the amount of money a small business must expend to be in regulatory compliance.