Well said Nick........I agree completely. American business cries about production costs and how much cheaper they can sell their product if production is moved out of USA, then the price never moves. American Greed at its best.Although I think Mr. Lee's explanation was a very good one I think it is arguable and most definitely sad.
It is true, that we should not blame China, we should blame companies that send their manufacturing oversees. But I wouldn't say "we demand and reward this behavior", because "we" don't have a choice.
I look at where everything I buy is manufactured. China is virtually on everything. It is nearly impossible to find some items still made in the USA.
Why is that? It is because of NAFTA and free trade agreements that were put into place. This allows companies to manufacture their goods in China or Mexico at a lower cost, due to labor being so cheap and no import tariffs. It allows companies to make a higher profit margin on their products.
It really is scouring the world for cheap labor, which I suppose we could call that capitalism, but I think greed would be a better term.
Maytag was the biggest manufacturer of appliances in the USA and they moved their manufacturing to Mexico....yet the cost of appliances to consumers didn't go down? Treager BBQ's recently did the same thing... you guessed it prices for their products did not drop. There are many, many other examples.
I would gladly, and do, pay more for items that are made in Western Europe or the USA and Canada. Sometimes I have no choice but I try. Do I have tools made in China? Of course. But I don't like it, and I definitely try to avoid it.
Hopefully I didn't offend anyone, but I just don't buy the capitalism argument. Now, all the people who were laid off need more services from the government...which, we end up paying for with more taxes. So I guess these companies got theirs - a higher profit margin due to lower labor costs and they stuck the bill to the American public all wrapped up in a package that gives the impression that it was necessary for good business practices and "lower prices".
I realize this may not be the case, in say for the forstner bits mentioned above and I believe in some instances like Mr. Lee outlined some companies have no other way to get their products made. But that is more of a product of where the USA is from a manufacturing standpoint as a result of free trade agreements.
Sad? Indeed.