3 ms·

This may not be so true. Remember comparative value, which is a real thing. China had very cheap labour that the US could never compete with. China made outr

This may not be so true. Remember comparative value, which is a real thing. China had very cheap labour that the US could never compete with. China made outrageous amounts of stuff, and stocks Wallmart and Amazon shelves with it. In my own lifetime, I have seen a seismic shift in material consumption of Americans, mostly for the better: the quantity, variety, quality of goods and even foodstuffs in a Wallmart today - cheap and accessible to most Americans - would blow someone from 1975 away. The giant piece missing from the economic equations is 'consumer surplus' which is the 'profit' that consumers derive. When consumers get more choice, more quality and lower prices, they are making huge 'profits' that we simply don't put in the equations. Consumer Surpluses have been massive for the West. At least for low-end manufacturing, it's been a massive neoliberal win-win. Obviously, the storyline is changing, and for more advanced products it's a different issue. But for most things so far, it's 'good' trade.

baybal2 5y ago
> China had very cheap labour that the US could never compete with. Not a case now. Skilled assembly line workers cost more in South China than in cheaper US states. Amazons, Googles, Facebooks still keep pouring into China like there is no tomorrow. I think a little of critical thinking will point to problem not being with the cost of labour. Thought, the initial US MNCs push into China was definitely motivated by the borderline free workers.
- jollybean 5y ago
  "Not a case now." Yes, it's the case now. Average mfg. wages in China are still short of Mexico, and US salaries include all sorts of overhead, especially healthcare. "Skilled assembly line workers cost more in South China than in cheaper US states." - for some things, not for most things. "Amazons, Googles, Facebooks still keep pouring into China like there is no tomorrow." - Yes, and? Without 'cheap labour' China would not exist, even today, the economic machine depends on it. The surpluses wrought by the American/Western consumer are massive. Walmart would have 1/2 of the goods, and they would be more expensive. Americans consume considerably more goods than they would otherwise, and that's a measure of the enormous surplus being created by comparative value trade between the two nations. The 'anti comparative value' argument made in the article is just hot air and speculation without a lot of data to pack it up. Adam Smith is as correct as Isaac Newton, you can't just say 'gravity doesn't exist anymore'.
- howmayiannoyyou 5y ago
  > Skilled assembly line workers cost more in South China than in cheaper US states. Irrelevant when 2/3 of inputs are in China and overseas shipping rates are 2x what they were 2 years ago.

baybal2 5y ago

> China had very cheap labour that the US could never compete with. Not a case now. Skilled assembly line workers cost more in South China than in cheaper US states. Amazons, Googles, Facebooks still keep pouring into China like there is no tomorrow. I think a little of critical thinking will point to problem not being with the cost of labour. Thought, the initial US MNCs push into China was definitely motivated by the borderline free workers.

jollybean 5y ago
"Not a case now." Yes, it's the case now. Average mfg. wages in China are still short of Mexico, and US salaries include all sorts of overhead, especially healthcare. "Skilled assembly line workers cost more in South China than in cheaper US states." - for some things, not for most things. "Amazons, Googles, Facebooks still keep pouring into China like there is no tomorrow." - Yes, and? Without 'cheap labour' China would not exist, even today, the economic machine depends on it. The surpluses wrought by the American/Western consumer are massive. Walmart would have 1/2 of the goods, and they would be more expensive. Americans consume considerably more goods than they would otherwise, and that's a measure of the enormous surplus being created by comparative value trade between the two nations. The 'anti comparative value' argument made in the article is just hot air and speculation without a lot of data to pack it up. Adam Smith is as correct as Isaac Newton, you can't just say 'gravity doesn't exist anymore'.
howmayiannoyyou 5y ago
> Skilled assembly line workers cost more in South China than in cheaper US states. Irrelevant when 2/3 of inputs are in China and overseas shipping rates are 2x what they were 2 years ago.