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In economics, one of the basic precepts of maximizing resources is that each area (in this case country) should produce what is cheapest for it, and trade those cheap resources for what would be expensive to produce itself.
So, now we take a basic two country system (grossly over simplified I know) of the USA and China. The USA is one of the chief exporters of food in the world, and China is a chief exporter of many manufactured goods (for the sake of simplicty, we'll just use shoes.)
At current, China can produce shoes at a much cheaper price than the USA (because of the lack of labor laws) and the USA can produce food far cheaper than China (because of the large ammount of arable land.) China makes shoes and trades them for food, USA makes food and trades it for shoes, and everyone gets things for cheaper than they could make them themselves.
So now, let's force China to make some labor laws. This destroys the competitve advantage that China has. The USA can now make shoes for basicaly the same price as China, without dealing with import laws and such. The USA no longer wants to buy shoes from China, and even worse, no longer wants to trade food for shoes.
The effects?
1) Shoes are more expensive in the united states, possibly by a fair ammount
2) China must survive on its own food stores, and thus food is more expensive in china.
3) Chinese shoe companies can't sell their product anymore, and thus layoffs/closings begin
To summarize:
In the US, we'd be inconvienced, and not much more. Maybe my GF would only have three or four pairs of shoes, instead of ten
In China, food would increase in cost while workers who are now at least working for pennies, would be fired completely. More expensive food + less money = starvation.
Now, having said all that, and probaby ticking a few people off. I'd like to say that I'm in no way a supporter of child labor, or pennies an hour wages. It's a horrible system, but I'm not sure if there's much China can do about it. It's a sad, sad situation.
I would love to keep buying American cars....but here's the thing.
I have a Ford, that just replaced a Chevy. The Taurus is a 2001 with 40,000 miles. It has problems all the time. We also have a Honda with over 120,000. The Honda has ZERO problems. The Honda we had before that, had ZERO Problems. The Chevy I had before the Ford, had problems just like the Ford.
Here is what I want to tell U.S. Automakers:
I really would like to keep buying your products, but I cannot. I cannot because it requires so much out of pocket money to keep these cars running that I have no money for anything else at times. On the contrary, I have a Honda that I don't have to do anything to (just regular maintanence). It gives me extra money to do things with my wife and kid. I am sorry but I cannot just throw money away so I can keep "Buying American".
If you can improve the quality of your cars, while at the same time decreasing cost I will stick with you. Until then......you'll have to deal with my buying one Honda after another. I can get 200,000+ miles out of a Honda and I can't get but 80,000 - 100,000 miles out of an American car.
Funny thing is.....I was a die hard American car buyer until I bought and drove my first Honda. There is no going back now.
Have a nice day Mr. Automaker
-----------------------------------------------------
As far as the orginal question:
I agree. I don't like buying from countries that have kids making shoes for Nike and other companies. It's unfortunately really hard to find stuff that is not made in China, Thailand, etc....
Originally posted by Dewar
So now, let's force China to make some labor laws. This destroys the competitve advantage that China has. The USA can now make shoes for basicaly the same price as China, without dealing with import laws and such. The USA no longer wants to buy shoes from China, and even worse, no longer wants to trade food for shoes.
The effects?
1) Shoes are more expensive in the united states, possibly by a fair ammount
2) China must survive on its own food stores, and thus food is more expensive in china.
3) Chinese shoe companies can't sell their product anymore, and thus layoffs/closings begin
Even though I agree with you somewhat. Shoes, like many other things, are WAY WAY too expensive in this country. I have no problem paying for shoes. Come on though.....Shoes that are made for pennies on the dollar and sell for $60-$100. Such a ripoff. What's sad is the fact that things don't have to be this expensive. It is all caused by GREED! We can show this just by looking at the price of cars, shoes, CD's, etc...
It's a shame what a mess greed causes.
edit: I don't know why I am posting in this political thread on a Linux Forum. I gotta stop this
Distribution: Lots of distros in the past, now Linux Mint
Posts: 748
Rep:
>"Even though I agree with you somewhat. Shoes, like many other things, are WAY WAY too expensive in this country. I have no problem paying for shoes. Come on though.....Shoes that are made for pennies on the dollar and sell for $60-$100. Such a ripoff. What's sad is the fact that things don't have to be this expensive. It is all caused by GREED! We can show this just by looking at the price of cars, shoes, CD's, etc..."
True, but it's always a buyer's market. I can get "last-year's" Nike's for $25 bucks in most US counties with an outlet or discount store. However, just like computers, if you want the newest-bestest thing, you're going to pay a ridiculous premium. I think the $100-200 shoe thing is misplaced, because most of the kids buy them in similar places, then jack the price up when bragging to friends. Makes you wonder if the kids that are beaten up (or shot) for having $200 shoes are actually being kicked around because of the shoes, or because they were acting like twits.
besides food getting more exppensive in china, food would become less expensive here...too inexpensive, and our farmers would be out of work, since theyd be out of work, great resources that arent being used means everyone pays more and has less here or in China
Originally posted by Whitehat Even though I agree with you somewhat. Shoes, like many other things, are WAY WAY too expensive in this country. I have no problem paying for shoes. Come on though.....Shoes that are made for pennies on the dollar and sell for $60-$100. Such a ripoff. What's sad is the fact that things don't have to be this expensive. It is all caused by GREED! We can show this just by looking at the price of cars, shoes, CD's, etc...
It's a shame what a mess greed causes.
edit: I don't know why I am posting in this political thread on a Linux Forum. I gotta stop this
most things in america are very very cheap! (apart from rent in big cities!)
u should come to ireland! god damn rip off country, so much so that the politians are starting to talk about price control!
awesome! support free trade products.
good stuff dont buy stuff you know is made by children or adults working in the same near slave conditions for that matter. america and the rest of the western world big businesses are really sickening in the way money comes before humanity for these "people".
it is hard (impossible) to disassociate your self from their products really, cos how can you tell? the companies go to great measures to hide the fact they are selling people such items. the world is screwed and its only getting worse....
Originally posted by Gill Bates most things in america are very very cheap! (apart from rent in big cities!)
u should come to ireland! god damn rip off country, so much so that the politians are starting to talk about price control!
LOL
What are some examples of some things that are comparable to something in the U.S. that is expensive?
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