I thought it was time to move off the China subject and go to something else, but there have been a rash of comments on this site and on my printing groups on LinkedIn that I’m going to post another China related blog in an attempt to address those other concerns.
Sometimes I can’t believe my ears. What has happened to America? Americans used to fight for their rights, but now our fight begins by laying down our guns. Our motto seems to be “why try; it won’t do any good anyway.”
Chinese printers market their low ball prices in the United States aided by two main things:
- Their costs are one-tenth of ours. How did I arrive at that figure? It was easy; I know how much minimum wage is in the US. Remember this wage is mandated by the government. Employers have to pay it. They also have to pay matching Social Security, so the real figure is much higher. I also read an article in Reuters that discussed how much the average factory worker earns in China. Without matching Social Security, they earn 1/10th. Suppose you are a Chinese printer marketing to the US, how difficult would it be to come in at half the price when your labor costs are less than 1/10th? Who is making the real money here? The Chinese workers? Ha!
- China plays hardball when it comes to International Trade. They are members of the WTO, but you don’t have to look far to see filing, after filing, after filings of Chinese trade violations for anti-dumping and anti-subsidies. Some states have a three times you are out law to penalize career criminals. If we held China up to this same standard they would right now be serving several consecutive lifetime sentences. They can import some products to the US for 2-5% duties. We, on the other hand, have to pay some 24% to sell there. It is wrong, it isn’t fair, and it is killing the US economy.
Since our government won’t help, and the business elite are benefiting from cozy relationships with foreign countries, there is only one thing left to “we the people,” and that is our collective buying power. If enough of us refuse to buy Chinese, Pakistani, Indian, Mexican, or any other products made from cheap labor we can turn the tide.
Some say that it is unfair to blame these countries because it is the American consumer who really controls the prices. Of course I want low prices, but not at the expense of putting myself or my neighbors out of work. I don’t know about everyone else, but if presented with two identical items and one is made in the US and the other in China I would rather buy American, even if it was a little more. I would not choose Chinese industry over American.
What about the automobile business, didn’t the Japanese do the same thing? No — they didn’t. They didn’t compete solely on price, although they used price at first to get our attention. What they did is build a better vehicle than the crap being pumped out by Detroit. I hate it that we lost this giant industry to foreign competition, but we deserved to lose it. Not because of the workers but because of the fat cats at the top who left the office every day counting their lavish bonuses while steadily guiding their companies into bankruptcy. Bonuses for bad leadership — whoever thought that was a good idea?
We are experiencing a 10% unemployment rate in the United States right now, primarily because of a few bankers who used vast lobbying power to influence congress. Our government systematically deregulated the banking and financial institutions until we got chaos. Those who believe in free markets, take note, without some control everything goes to hell, quickly.
There is an axis of evil to coin a phrase from George W. Bush. Americans are being crushed economically by Wall Street Bankers, the US Congress, the Insurance industry, and unfair foreign competition. Until these four entities are brought to task it is going to do nothing but get worse. Do you hate 10% unemployment, reduced wages, and increased working hours? That is just a start. Over the next few decades we will see 25% unemployment, salaries cut to the bone, and typical working days of 16 hours. Once Wall Street has us where they want us, poor, starving, and desperate we will be competitive with China, because we will be reduced to their level. Welcome to the new America, the one world government, the one fashioned by the true axis of evil.