Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

Loving Our Stuff, but Hating the People Who Sell It to Us
National Review ^ | 03/20/2016 | Kevin Williamson

Posted on 03/20/2016 10:38:54 AM PDT by SeekAndFind

There is a popular website called Uncrate, which is the 21st-century version of the old Sears, Roebuck catalogue, i.e., consumer-goods porn, a resource for stylish young men with excess liquid assets who require suggestions for ways of being relieved of that burden. On Friday, the featured product was the Vollebak Baker Miller “relaxation hoodie,” a garment in “Baker Miller Pink,” a color believed to have psychoactive qualities that, according to Uncrate, “activate your parasympathetic nervous system and calm you down.” The hoodie also features “a mesh visor, vents that encourage breathing through your nose, and asymmetrical pockets designed like slings that further help you relax.”

If you are having trouble visualizing those relaxation slings, there is an image here that makes it perfectly clear what this product really is: a high-end ($320!) powder-pink straitjacket.

Aldous Huxley was an optimist.

We Americans love our consumer goods, of course, and if the publishing market is to be believed, some nontrivial share of us take great pleasure in simply looking at consumer goods that we never intend to purchase, that indeed we cannot purchase, because they are far too expensive. The Robb Report, a periodical guide to exotic sports cars, ski chalets, and yachts, is sold at notably down-market locations such as Walmart. It’s not that those who are in the yacht-and-absurd-car market never enter a Walmart — Arnold Schwarzenegger pops in from time to time, as a marketing stunt for the products he sells therein — but, in general, billionaires buying fourth homes in Bora Bora do not do so as an impulse buy after noticing a magazine on the shelf in Walmart. Some years ago, when I was considering taking a job in St. Thomas, a local newspaper editor warned me that some people found the island’s relative lack of consumerism plenty disturbing, and that people sometimes flew to Puerto Rico just to immerse themselves in the comforting array of a shopping mall. Charlotte Amalie has come a long way since then, and online shopping wasn’t then what it is today.

But Americans have a strange love-hate relationship with our consumer goods: We love our stuff, and we hate the people who make them and sell them to us.

The populist Right’s descent into Trumpism has been accompanied by another chorus of that great daft stupid hymn of American political economy: “We Don’t Make Things Here Anymore.” That is completely untrue, of course: As measured by the Industrial Production Index, we’re producing four times as much today as we did in 1960. Our exports have been flirting with record levels for a while, and we export many times more than what we did in the 1950s or 1960s. The largest markets for our exports are also the countries from which we take most of our imports: Canada, Mexico, and China. This is no surprise.

“But when you go into Walmart, nothing says ‘Made in the USA.’ Everything says ‘Made in China’!” Some variation on that claim can be heard on every talk-radio show, in every mentally dead Donald Trump speech, and on nine-tenths of the barstools across the fruited plains. It got to be so common that a couple of years back Walmart pledged to buy an extra $250 billion in U.S.-made goods over the course of a decade. The firm immediately ran into trouble meeting that pledge. As James B. Kelleher put it in The Huffington Post, would-be Walmart suppliers faced “an experienced workforce, and other shortcomings.” That’s a very polite way of saying that the stuff they sell at Walmart isn’t the kind of stuff that Americans make. Yes, China is an absolute powerhouse in the world flip-flop market — good for them.

Question: Would you rather your grandchildren worked in a Boeing factory, or in a flip-flop factory? Would you rather be a midlevel employee at a textile mill, or at Apple? Of course there is some wage at which working in a flip-flop factory is attractive, but the median American would-be flip-flop engineer’s next-best option is a lot more attractive than that of his counterpart in Wenzhou, and, so, that’s that.

Trade deficits are a generally misunderstood phenomenon. The United States probably will always have long-term trade deficits with, say, Germany and Switzerland, because there are a lot more Americans who buy Audis and Rolexes than there are Swiss who buy Boeing airliners and high-end engineering services. Scale of course matters. If U.S. firms were to capture one-third of the German automobile market, they’d have 1 million sales per year to divide up among them. If German firms were to capture one-third of the U.S. market, they’d have about 2.5 million sales to divide among them. The impact of that 2.5 million sales on Germany’s $3.8 trillion GDP would be much larger than would the impact of 1 million sales on the U.S. GDP of $17 trillion. Switzerland’s $22 billion in annual watch exports wouldn’t make much of a blip if the revenue and jobs were divided among 319 million Americans, but it’s a pretty big deal to the 8 million Swiss: $2,750 per capita vs. the $68.97 per capita that would land in the American economy if Detroit were to displace Geneva as the world’s horology capital.

There are advantages to being a very large country such as the United States, India, or China. And there are some disadvantages, too: High-end, high-return, high-skill manufacturing by firms such as Mercedes, Zeiss, and Leica have a relatively large economic footprint in Germany compared with what similar firms have in the United States. Ericsson, the second-largest company in Sweden, could be a relatively small division of Procter & Gamble, with sales that add up to an amount comparable to Wells Fargo’s annual income-tax bill. ExxonMobil’s annual revenue is considerably more than the GDP of Denmark (all of our nouveau national socialists love the Danes!) and isn’t much short of that of Norway, where the energy business plays such an outsized role in the economy. It takes a lot to move the needle in an economy that — for all of our whining about hard times — produces about . . . one-quarter of the entire economic output of human civilization.

With a little less than 5 percent of the world’s population.

Our trade picture looks the way it does for many different reasons. One is that many people overseas like to hold U.S. dollars in vast quantities, in the public sector as reserves and in the private sector as a hedge against the public sector, which in places such as China has been historically unreliable. That means that they hold back some of the dollars they earn selling us things, in effect financing our consumption with zero-cost credit. There are domestic factors to consider, too. One is quality: There isn’t a major U.S. automobile company that makes cars as good as Audi or Mercedes at the high end or as good as Honda or Toyota at the low end. High-income Americans don’t choose Benzes over Cadillacs because the Germans are so clever, but because they are better cars. We also have work-force shortcomings: We have the best workers in the world, and lots of them, but at the same time we have a large body of low-skilled but relatively expensive workers who haven’t shown themselves eager to be trained up for new job and expanded opportunities. You could build a major manufacturing facility in Detroit or California’s Central Valley — but you’d have to import skilled workers to operate it.

The Chinese buy vast quantities of American soybeans not because we have a clever trade policy vis-à-vis tofu-making material, but because American farmers are the world’s best and most efficient producers of soybeans, so much so that it makes more sense to ship them halfway around the world than to grow them in China or in nearby countries that are, in purely agricultural terms, perfectly capable of producing soybeans. (You may not think of soybeans or cotton as a high-tech wonder of American ingenuity, but only because you don’t know much about where soybeans or cotton come from.) It isn’t Italian protectionism that inclines Americans to buy Armani suits and Gucci briefcases. The Italians really are good at that sort of thing.

And, as it turns out, lots of Americans want inexpensive flip-flops. De gustibus and all that.

In the ancient world, kings, chieftains, and emperors fought risky, bloody wars for access to goods from abroad. And yet we Americans, in the midst of all this plenty, have come to believe that the fact that all of the best stuff from around the world shows up in Pittsburgh with no real effort at all from the locals is a conspiracy against us, that somehow we are being had by having access to the cream of human creation. And so we wrap ourselves up in our pink couture stratjackets and contemplate the virtues of 18th-century mercantilism, and wonder, idly, whether it might be the case that the world really is flat after all.

— Kevin D. Williamson is roving correspondent for National Review.


TOPICS: Cheese, Moose, Sister
KEYWORDS: blahblahblah; consumers; deficit; trade; yellowjournalism
Navigation: use the links below to view more comments.
first 1-2021-4041-6061-8081-91 next last

1 posted on 03/20/2016 10:38:54 AM PDT by SeekAndFind
[ Post Reply | Private Reply | View Replies]

To: SeekAndFind

This is the raging a-hole who said white blue collar America was a moral cesspool that deserves to die.

I refuse to even click on the link and contribute to the fantasy that article traffic means people agree with him.

FUKW.


2 posted on 03/20/2016 10:40:56 AM PDT by 20yearsofinternet (Border: Close it. Illegals: Deport. Muslims: Ban 'em. Economy: Liberate it. PC: Kill it. Trump 2016)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
We also have work-force shortcomings: We have the best workers in the world, and lots of them, but at the same time we have a large body of low-skilled but relatively expensive workers who haven’t shown themselves eager to be trained up for new job and expanded opportunities. You could build a major manufacturing facility in Detroit or California’s Central Valley — but you’d have to import skilled workers to operate it.

See what welfare begets? Why bother to work when the taxpayers are forced at gunpoint to subsidize your inactivity?

3 posted on 03/20/2016 10:42:36 AM PDT by abb ("News reporting is too important to be left to the journalists." Walter Abbott (1950 -))
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Well, he is right on this issue.

We have bought quite literally TONS of stuff each manufactured elsewhere.

So that is on us.


4 posted on 03/20/2016 10:45:21 AM PDT by Lorianne
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
We love our stuff, and we hate the people who make them and sell them to us.

Ever notice how the pundits and political elite can never make a rational argument?

They just toss out emotives to maneuver the weak-minded into feeling 'bad' if they don't agree.

5 posted on 03/20/2016 10:48:35 AM PDT by MamaTexan (I am a person as created by the Law of Nature, not a person as created by the laws of Man.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: 20yearsofinternet

RE: This is the raging a-hole who said white blue collar America was a moral cesspool that deserves to die.

In what article did he say that? Could you provide us with a source?


6 posted on 03/20/2016 10:49:00 AM PDT by SeekAndFind
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeekAndFind

I don’t hate them, but I do think our country would be better off if we weren’t so dependent upon imports. More people employed, more wealth created and retained in the domestic economy. Cheap is only going to get us so far. There will come a point when even cheap isn’t cheap enough for so many lacking the income to buy much of anything.


7 posted on 03/20/2016 10:52:45 AM PDT by RegulatorCountry
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lorianne
We have bought quite literally TONS of stuff each manufactured elsewhere.

So that is on us.


No, sorry, it is not "on us". TONS of "stuff" is ONLY "manufactured elsewhere". If it were a level playing field TONS of "stuff" would be manufactured here.
8 posted on 03/20/2016 10:53:32 AM PDT by GLDNGUN
[ Post Reply | Private Reply | To 4 | View Replies]

To: SeekAndFind

In what article did he say that?


http://www.freerepublic.com/focus/f-news/3408340/posts


9 posted on 03/20/2016 10:53:35 AM PDT by 20yearsofinternet (Border: Close it. Illegals: Deport. Muslims: Ban 'em. Economy: Liberate it. PC: Kill it. Trump 2016)
[ Post Reply | Private Reply | To 6 | View Replies]

To: SeekAndFind
If U.S. firms were to capture one-third of the German automobile market, they’d have 1 million sales per year to divide up among them. If German firms were to capture one-third of the U.S. market, they’d have about 2.5 million sales to divide among them.

Wait... In the U.S. (pop.: 330 million; 7.5 million cars sold per annum), only about two-and-a-half times as many automobiles are sold than in Germany (pop.: 75 million; 3 million cars sold per annum), which has less than a quarter of the population?

Regards,

10 posted on 03/20/2016 10:54:17 AM PDT by alexander_busek (Extraordinary claims require extraordinary evidence.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
I post this regularly on threads like this. The author makes a number of very good points. "Free trade" is a complicated issue built on several simple underlying influences:

1. In any financial transaction, buyers will seek the lowest price possible for the type and quality of a product or service they are buying. At the same time, sellers will look for the highest price possible.

2. An employment arrangement involves a "buyer" (the employer) and a "seller" (a worker).

3. One of the simple realities of an economy is that a worker will usually demand far more for his/her services than he/she would ever pay another worker for the same services.

Point #3 underlies almost every policy decision that is made by a government, and every business decision that is made by a private employer, in an advanced country like ours where labor costs are extremely high. "Free trade" gives us the ability to do things in a foreign trade situation that we'd never be allowed to do under the law right here in the U.S. -- namely, paying workers less than our statutory minimum wages, buying products that are made in factories that violate every environmental standard under our laws and fail to meet minimal worker safety standards, etc.

11 posted on 03/20/2016 10:54:53 AM PDT by Alberta's Child ("Sometimes I feel like I've been tied to the whipping post.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: alexander_busek

Somebody’s mistaking total production in Germany for the domestic market in Germany, not taking exports into account.


12 posted on 03/20/2016 10:55:11 AM PDT by RegulatorCountry
[ Post Reply | Private Reply | To 10 | View Replies]

To: SeekAndFind

No, I don’t “hate” China.

No, I don’t “love” my stuff.

I have no problem buying things made in other countries. They are filling the void left by our government to enrich themselves. I would do the same thing.

I do have a problem with trade deals that put us at a disadvantage because the other side has benefits that we don’t because of the taxes and regulations imposed on us by a feral federal government.

So yes, I hate our federal government for being the traitorous bastards they’ve become.

I’ll throw in that during this campaign season, I’ve come to despise The National Review, another cadre of traitorous bastards.


13 posted on 03/20/2016 10:57:24 AM PDT by upsdriver (I support Sarah Palin.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: GLDNGUN

Agreed.


14 posted on 03/20/2016 10:58:15 AM PDT by trisham (Zen is not easy. It takes effort to attain nothingness. And then what do you have? Bupkis.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: 20yearsofinternet

Here’s what he said:

“If you spend time in hardscrabble, white upstate New York, or eastern Kentucky, or my own native West Texas, and you take an honest look at the welfare dependency, the drug and alcohol addiction, the family anarchy—which is to say, the whelping of human children with all the respect and wisdom of a stray dog—you will come to an awful realization. It wasn’t Beijing. It wasn’t even Washington, as bad as Washington can be. It wasn’t immigrants from Mexico, excessive and problematic as our current immigration levels are. It wasn’t any of that,”

I would have to say that the situation he said is true to a certain extent in many White communities. The problem I have with him is he GENERALIZES it to every single white community without differentiating those who are truly hurting with those who are irresponsible.


15 posted on 03/20/2016 11:00:53 AM PDT by SeekAndFind
[ Post Reply | Private Reply | To 9 | View Replies]

To: GLDNGUN

Don’t agree.
We like cheap stuff.
Cheap stuff requires cheap labor.

It’s on us.


16 posted on 03/20/2016 11:06:22 AM PDT by Lorianne
[ Post Reply | Private Reply | To 8 | View Replies]

To: RegulatorCountry
Somebody’s mistaking total production in Germany for the domestic market in Germany, not taking exports into account.

Are you saying that I am making a mistake? Because the article clearly equates "German automobile market" with "sales per year in Germany" etc. and no where mentions auto production.

I mean, if I were to talk about the New Jersey "market for rickshaws" and the "sales per year" of rickshaws, then one would clearly expect that I am talking about the sale of rickshaws in New Jersey (which used to be the world's number-one manufacturer of rickshaws, although virtually none were put to use in New Jersey, itself).

If what you are saying about exports was indeed the author's meaning, then do you agree that he could have expressed that more precisely?

Regards,

17 posted on 03/20/2016 11:07:38 AM PDT by alexander_busek (Extraordinary claims require extraordinary evidence.)
[ Post Reply | Private Reply | To 12 | View Replies]

To: SeekAndFind

If flip flops were made in America, you would buy one pair and then never have to replace them because they wore out. America is capable of making very high quality highly durable products and we generally do. That which is made in China is generally puposely built with a short life span via “planned obsolescence”. Your Chinese flip flops may last you the summer. This is an imperfect analogy of course. I have observed this planned obsolescence to be especially prevalent in wal wart kitchen gadgets. I am convinced that the manufacturers sit around in meetings devising ways to make their junk fall apart faster and more effectively. That is one of my biggest problems with foreign goods, it’s all junk and I don’t know that our landfills can sustain this trade policy for much longer.


18 posted on 03/20/2016 11:07:53 AM PDT by RC one
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

“Kevin D. Williamson is roving correspondent for National Review.”

Williamson is a pygmy columnist who fancies himself cut from the same cloth as H L Mencken. He is not. He wants to write rough and tough but he lost out on the intelligence aspect. He shaves his head as compensation.


19 posted on 03/20/2016 11:09:19 AM PDT by odawg
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lorianne
Don’t agree. We like cheap stuff. Cheap stuff requires cheap labor. It’s on us.

It doesn't matter whether you "agree" or not. If I can't buy something "Made in the USA", that's a FACT, not an opinion.
20 posted on 03/20/2016 11:10:47 AM PDT by GLDNGUN
[ Post Reply | Private Reply | To 16 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-6061-8081-91 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson