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No, I don't believe it does. I keep seeing this comment and it never made sense because the promise of globalization was that it would drive down prices because
by DeonPenny 9y ago
No, I don't believe it does. I keep seeing this comment and it never made sense because the promise of globalization was that it would drive down prices because of cheaper labor. But shoes, computers, and cloth cost just as much as ever. It seems only the rich have benefited from this.
- tdb7893 9y agoIt's not everything but stuff like smart phones, jeans, and shoes would be much more expensive if they were manufactured in the US. For example sneakers already have high tariffs (high end shoes being taxed an extra about 12% and most other mass market shoes being taxed at around 35-48% from the data I found) but about 98% of shoes in the US are foreign made because even with the tariffs and shipping costs the US can't compete. The total labor cost per hour is often about 10x what it is in countries like Bangladesh so it seems pretty clear that especially for things where labor is a large part of the cost they are going to be much cheaper if manufactured outside the US.