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This is Economics. Ship those manufacturing jobs to 3rd world countries. Keep prices low.

It is not good for Americans to have to pay high prices for the goods we want. Its even worse to put Tariffs on them.

Doubling, Tripling Prices of the goods we want? And people say paying a flat consumption tax is bad? LOL

If you do not understand how this works, feel free to ask questions and I will try to explain how this works.

Business Insider had this on their page.

Made in USA often comes with a high price

In his first address after his victory speech â€" a two-and-a-half minute YouTube video posted Nov. 21 â€" President-elect Donald Trump dove right into the issue of trade.On his first day in office, Trump said, he plans to “issue a notification of intent to withdraw from the Trans-Pacific Partnership, a disaster for our country.â€Free trade teals like the TPP and North American Free Trade Agreement (NAFTA) played a prominent role in Trump’s campaign message. Though the TPP is not yet in effect, Trump has consistently blamed NAFTA and other trade deals for shipping too many jobs overseas and hurting the U.S. economy.Although there is broad support for increasing U.S. manufacturing power overall, goods made in the U.S. are inevitably more expensive than those created in countries where labor is cheaper, such as China, Vietnam, and Mexico.

IPHONES (Apple)

During his campaign, Trump suggested that his administration could potentially get Apple to build their computers and devices in the U.S. instead of other countries. Nikkei Asian Review reported last month that Apple assembler Foxconn has actually been studying the possibility of moving iPhone production to the U.S. But a source told Nikkei that the cost of an iPhone would "more than double" if that were to happen. An evaluation by Marketplace looked into the hypothetical cost of an American-made iPhone, and came up with a similar estimate. If all the components were made in the U.S., they suggest, that could push the cost up to $600, which would mean the phone could retail for as much as $2000.According to a different analysis published in the MIT Technology Review, if iPhone assembly were done in the U.S. but the components were still sourced globally, the cost of making phones (currently estimated at about $230) would rise about 5%. However, if the components were made in the U.S. (with raw materials bought on the global market), that would add an additional $30 or $40 to the cost of making the device, an increase that would then be reflected in retail markups.Dan Panzica, chief analyst at IHS Markit Technology's Outsourced Manufacturing Intelligence Service, suggests these estimates all overlook a bigger problem.

JEANS

Panzica suggests that clothing costs could increase even more than that of electronics if they were manufactured in the U.S. For a device like the iPhone, he says, the majority of the cost is in the materials that go into it. But materials for shirts and pants are cheap - the labor makes up a higher portion of the cost of production.That's why apparel companies have shipped manufacturing overseas, he says."If you look at labor rates around some of the really cheap areas, Vietnam is like $2.50, and Bangladesh is like $1.80 an hour," he says. By comparison, IHS' analysts calculate the labor rate in the U.S. at $25-$30 per hour (a number that takes into account costs beyond an employee's wages). "So even if there's an hour worth of labor in a blouse or a men's shirt, now you're talking about a $25 buck difference per piece," he says of the manufacturing cost.That logic is reflected in "Made in the USA" lines sold by various U.S. clothing companies.Levi's "Original fit selvedge jeans" cost around $128. But the selvedge jeans of the same fit from the company's "Made in the USA" collection, which uses premium denim from Cone Mills of North Carolina, were listed online for $348. (As of writing they're on sale for $104.90, however.)JCrew's Wallace Barnes raw indigo selvedge jean, which is constructed in the U.S. using denim from Japan's Nihon Menu mill, are listed at $248. Other raw selvedge pairs for men cost $175.

SNEAKERS

A large percentage of footwear is made in Asian countries included in the TPP, and about 97 to 99% of sports footwear that's sold in the U.S. is made in other countries, according to the pro-trade group Footwear Distributors and Retailers of America.The TPP would have reduced or eliminated tariffs for shoes imported from Vietnam and other countries, which might have reduced the overall cost of sneakers in the U.S. Companies like Adidas and Nike, which has 26 footwear factories in Vietnam, supported the trade partnership.New Balance, however, opposed the deal. On its website, the company boasts that it makes or assembles 4 million pairs of athletic footwear per year in the USA. New Balance labels its domestically made pairs for consumers, which also makes apparent the difference in price between those shoes and the ones made offshore.New Balance shoes range in price from $65 to $399, but the American-made pairs start at $165 and get as expensive as $399. (The most expensive pair on the New Balance website is indeed made in the U.S.) That means none of the lowest-priced pairs are manufactured domestically.A similar contrast is also visible in Reebok's shoes. The company makes a Postal Express line, which is made in the U.S. and designed specifically to meet the needs of postal workers. But the shoes range from $167-$230, whereas Reebok's regular athletic footwear costs between $80 and $165.

Something to think about before we make Crony Deals to keep jobs in America that should have never existed here with the free market in the first place. Lower prices, ship manufacturing to poor 3rd world countries.

Americans LOVE our low priced goods, just look at Wal-Mart, its a perfect example of Americans choosing low-cost goods.

 

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The estimates given in this article ate accurate with CURRENT regulations and trends. American goods are higher priced due to higher saleries, safety regulations, environmental regulations, taxes, and a host of other things. Not to mention the lack of sales in comparison to the low cost imported junk.

Now, let's think about this. What if taxes were significantly lower? What if there were no unions? What if Asian made products cost just as much as American ones due to tariffs? What if American companies sold the bulk of products over imports?

See, simple economics means looking at the whole picture. If American companies sell more volume they can charge less, if American companies have less tax and fewer moronic regulations they can charge less.

It's really simple stuff. One thing these "analysts" fail to grasp is that trump is going to make these companies want to produce in the us, he's not going to force them. He's going to create an environment friendly to American production. Costs won't go up because profits will increase on their own.

Besides, wanting cheap crap is a pretty terrible reason to cause an unemployment epidemic, no? Be an American, buy American, and support your own country.

Also, while I'm here let me give an example. This is proof that businesses don't move production to offer better prices, they do it to improve profit.

Peavey amplifier company. They have made their amps in the USA forever, recently they moved all production to china however. Now, obviously their production costs are lower, right? What did it do to their retail price? NOTHING. The model 6505 cost $899 when made in the USA, now made in china it costs $899.

Good post, fairly accurate

 

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I don't think this is accurate. I only buy red wing boots made in America, the pair I get cost $219 a similar pair made in Asia run about 160. Where is the crazy price difference. Look at thorogood boots they are Union made and only run 180ish

I don't know the brands so I don't know the quality, but sometimes quality and how long It will last has a big impact on price as well as supply and demand. Price isn't a one step idea. It can be more complex than that. Most goods of similar supply and demand and quality will go up when made here, labor cost, regulations, taxes.

This is also just my opinion, but the more luxury you get and further away from a base model of a good shoe, or other item, I feel as the price gets really high, you get diminishing returns on the quality and usefulness of that product for the amount you paid. This is not always the case, but sometimes that is.

There is also name recognition, and Goodwill, and those things factor in the price as well.

 

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Not to mention both companies cut the leather here, shipp it out of the country to be tanned and dyed due to EPA rules, and then bring it back in for assembly. The Thorogood VP told me that adds $30 to $50 to each pair of boots

Another great post, end the EPA.

 

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If the cost of American production is so expensive, why are Asian and European automakers building cars here now?

There are flaws in the logic of the article.

Shipping cost due to weight of products, we are seeing this a lot. Heavy, made in US, or closer, like Mexico. Does that help?

 

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Also, when it's American made that means that the cost of the item STAYS here to be circulated back into OUR economy.

Not always think

 

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First of all, designer clothes are expensive because designers are full of themselves. Secondly, markets adapt. If the cost saving method of overseas labor is out, then companies will either die off or find another way. And quite frankly a small increase in price isn't a big deal for the sake of American made.

Right I made a post about designer

 

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I couldn't agree more. Try finding a Japanese vehicle for sale in USA that was actually manufactured in Japan. Yes, there are a couple, but very few. Even production costs in China are getting to the point that it's as expensive to produce there as it is here.

Some of the cheapest cars available to Americans are built here in Georgia...and Tennessee and Texas. Why? The unions aren't in control...plain and simple.

And this applies to about 98% of ANY "newz" articles that are posted today. Most are full of spurious facts/numbers and are reported in a way to advance THEIR agenda. What's worse is when you read something that you think might be "BS", it can be very difficult to find the ACTUAL information.

As an example: I saw a shared article not too long ago with the headline "ALL OF MCDONALD'S IN USA GOING TO KIOSK ORDERING". So, I read the article. Long story short, it attributed this to the min wage "war". It asserted that McD's had made an announcement that in light of high costs of labor, all of the restaurants in the US would be going to automated ordering. The article left you thinking that it was going to happen YESTERDAY. A Google search turned up several more stories along the same lines. It wasn't until I read the ACTUAL press release on the McD's corporate website did the ACTUAL story become clear. Basically, as stores are updated and renovated, they will also include automated ordering kiosks as well as a myriad of other technological advances. Nothing about cutting down on labor costs and no timeline (except "over the next several years")...just the FACTS. But hey...just the FACTS does a terrible job of generating click-bait articles.

Built is different than components. Where are the components made? Where is the car "built?"

He didn't mention cars in his article. Because of their shipping costs and weight. Makes sense to put together foreign components into a car here in America. Shipping costs.

 

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Precisely. Some of which have been documented in this thread already and others haven't but the Globalists will not stop misrepresenting and downright lying about how things work. My favorite was yesterday with some pundit saying that a reduction in taxes like Trump has proposed was a) unprecedented and b) would lead to "$10 Trillion more in national debt". If you are old enough to remember Reagan's first term you, like I, knew immediately that he is a liar. Same on the cost of things.

Sorry, economics does not lie, it just documents the facts of people trading value for value. Free markets do not lie. We do not have a free market, though. Governmemt force creates market distortions. Changes the natural order of people trading value for value.

 

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EJR, there are foreign owned Tier 2 suppliers that manufacture for Hyundai, Kia, Mercedes, Toyota, Honda, Nissan, BMW located all across the South. Toyota has an engine casting plant in Huntsville AL, Air bag expanders are made in LaGrange, GA and Auburn, AL, Koyo has a bearing plant that makes rollers for valve lifters in Cairo, GA, Stanadyne has a plant in Tallahassee FL that makes valve train components.

These auto companies employ "Just in Time" supply chain management that requires their Tier 2 suppliers to be responsive to their needs. True story that I was involved in - Wanna make a slight change to the layout of the lifter roller shipping tube that is placed in the assembly robot? The supplier that is located 200 miles away can do that, but the supplier that has 3,000,000 units steaming across the Pacific can't. Shipping costs are a small fraction of costs but is far outweighed by other factors.

The cost to ship a complete car from China is not nothing.

 

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Logic and facts? Seriously, you think they'll have any impact?

Article said no mention of cars, don't be a :3hat:

 

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Shipping a container ship full of cars is no different than a container of oil filters, pens, cloth, etc.

They are certainly larger and heavier per foot than alot of other things. There is also a lot of just dead space in a car too.

Dead space plus high weight equals closer to home.

Not that hard to understand.

 

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Tariffs make prices higher for us, and making the cars here because of tariffs, once again, make the price more too.

That's the only reason shipping matters.

 

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Good to hear, at least you're in touch with reality.

:rotfl::rotfl::rotfl::rotfl::rotfl:

 

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"made in the USA" is now synonymous with being overpriced and crappy. thanks government.

But it will be so much better and such a lower price, cuz dey told me dat at GPDO. :rotfl:

 

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Some things need to be made here, some things need to be made far away from home in some 3rd world crap hole, other things needs to be made closer to home, Mexico.

I'm all in favor of letting the free market decide, not government intervention. LULZ

 

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People wonder why our economy is so screwed up, it's because of false ideas that are expressed in this thread, but these are large complex ideas that are much better decided by the free market, of free people, freely trading value for value with people without Governmemt force and intervention.

Let the markets decide, not Governmemt intervention and force.

 

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I'm going to have to let the nationalist out of myself for a moment.

Honestly, the "free market" is nothing but a tool for lining the pockets of the international bankers. A country has to take care of its own first and foremost. In China almost every product that can be bought is made in china. Japan has a massive market for its own products. No one says that there is a problem with that but when it comes to the USA it should be a free market where people are free to buy the cheapest option and piss on the economy of their own country. No sense of patriotism, nationalism, nothing. Pure greed and globalism.

I'll say again, I strongly support full deregulation and vastly reduced taxes on American companies while imposing large tariffs on any import.

Warren buffet actually had the solution but I've never heard it mentioned in conversation. His idea used trade credits and was brilliant. I won't go into it now but if anyone would like to hear it I'll post it.

Now that is how you argue fam! Well done I say!

:applause: :righton:

 

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Apparently you've never been to Laredo Texas. Train after train of brand new chryslers and chevrolets rolling in. Not to mention Canadian imports too.

Speaking in generalities, plus we know this.

 

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the "free market" has never existed in the united states. you may mean crony capitalism.

I agree, but it was fairly close to it in the early years of the Republic.