Laughing Blogger Sums Up How Americans Feel About Cheap Labor Chasing Corporations

a reply to: seasonal


Don't missunderstand me. I'm not defending the corporations as much as putting the blame equally on the consumer.
You say Nike and apple as an example.
We don't have to buy their products, we choose to.


Why not use IBM?
Norfolk southern?
DuPont chemical?
Exxon?

They all pay quite well.

a reply to: Bluntone22

For now.

Why not use IBM?
Norfolk southern?
DuPont chemical?
Exxon?

They all pay quite well.

If Nike and apple lower their price the consumer will still buy their products.

They have to pay the higher prices if they want the goods.

You say Nike and apple as an example.
We don't have to buy their products, we choose to.

a reply to: Bluntone22

Thanks for doing the math. You;re right. Al those other costs. Like factories that have mud floors, that collapse, that burn.

The building codes in other countries and unssafe working environments save a lot of money, too.

Costs a lot less to bribe officials to look the other way than it is to make these sweat shops safe. Like the Indian clothing industry.

a reply to: Bluntone22

and why do you suppose that americans buy so many cheap products? I`ll tell you why because all the good jobs have been sent out of the country and most americans can`t afford quality products on their burger flipping salaries. americans don`t WANT cheap products,americans can only afford cheap products.

Look at the bright side there is still %1 of americans whole can still afford to buy the quality products like we use to make here in America,The %1 that moved all the manufacturing jobs out of the country so that the other %99 can only afford the crap products that the %1 make out of the country.

a reply to: Bluntone22

Hi Blutone22, I think you have presented several valid arguments regarding consumers seeking the lowest price. However, in terms of how corporations price goods I don't think many folks here are particularly well versed in the maths. Most of us like to proclaim 'bumper sticker' phrases as common sense evidence but it does not really help in understanding the nuances of how the decisions are made.

Case in point: price optimization and game theory

Linear programming is a technique which became widely used after WW2 in business. Here is the wiki : Linear Programming. There is a nice little graph on the right which shows what the math is doing.

There are many factors which are taken into account and an import tariff would affect more than merely the cost. As others have stated wages have stagnated and so the feasible price points for various goods have also dropped which lowers the potential for profits.

This is a widely recognized fact and a source of the desire of large corporations to produce outside the US, but the US is also the largest market for their products and so a healthy consumer population is desirable to these same corporations. The point being these corporations absolutely require a healthy economy somewhere to make profits.

When only looking at consumer buying decisions then game theory (as you have identified) is clearly the best analytical tool. For a moment imagine ten years down the road with continued wage stagnation what the consumer would view their best interest to be. It certainly would not be to support these corporations and often in the past involves action against these large corporations which threatens their existence.

Such a large tariff which would likely be unattainable and a smaller percentage would be instituted. From the governments point of view it would assist in protecting industries fundamental to national security and, if successful in helping the economy, would garner support from the populace.

Corporations would likely give in to pressure in an effort to maintain access to their largest market and it is in their best interest to help ensure that market stays healthy. So in the long run if a tariff assists in restoring the health of the largest market then it would be in both the best interest of the corporations and the consumers despite the initial pain either side may feel.



The only other solution to this problem is a guaranteed minimum income which sadly still faces strong opposition.

-FBB