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His masks cost 10c where Chinese-made masks cost 2c. Once you factor in the cost of this crisis as an externality, the cost of Chinese-made anything skyrockets
by goatinaboat 7y ago
His masks cost 10c where Chinese-made masks cost 2c.
Once you factor in the cost of this crisis as an externality, the cost of Chinese-made anything skyrockets. Outsourcing is a bait-and-switch, always was.
- onepointsixC 7y agoYou're completely correct, but what guarantee does he have that the Government will account for this with tariffs?
- mobilefriendly 7y agoThe other externalities being environmental degradation and, to some degree, labor abuse.
- birdyrooster 7y agoAlso ahem, world security risk to empower despotic regimes that force political and religious prisoners into concentration camps.
- valuearb 7y agoCoronavirus wasn’t created by cheap Chinese manufacturing.
- goatinaboat 7y agoYou’ve got it backwards. China’s lack of regulation is what makes both cheap manufacturing possible and spread of pandemics inevitable. The wet markets have gone straight back into business.
- valuearb 7y agoWet markets existed when it was a communist economy. Cheap manufacturing cones from cheap labor, which comes from recently being a third world nation.
- goatinaboat 7y agoWet markets existed when it was a communist economy Then as now, the only thing that is forbidden is criticism of The Party. Want to exploit your workers and ignore all environmental and hygienic concerns? That was and is OK there. That’s how they undercut the West in manufacturing, no other reason. Concepts of protecting the environment or workers rights ironically only exist in the capitalist West.
- valuearb 7y agoThat there are some factual basis to your assertions, but in aggregate you are missing the boat. Chinese labor is cheap because it has been a poor country, lacking capital to raise its productivity and labor standards to western levels. Comparative advantage means both sides benefit when Chinese labor makes goods for the west. They get better paying work, and we get to make our goods cheaper. Working for Foxconn is a huge improvement in living standards over the rural jobs most of the Chinese workforce comes from. Environmental protections cost money. It’s far easier for wealthier first world countries to bear those costs without significantly reducing their living standards. Poor countries, whether it be China, first half 1900s USA, or as we saw previously with the USSR, are more likely to prioritize economic output over environmental protections. Economic growth is why environmental standards improve over time. It costs proportionately less to increase them, and new technologies also lower costs of enacting tougher restrictions. As China continues to grow wealthier, it will likely continue to increase its environmental protections. Especially if it ever turns into a real democracy.