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To: Last Dakotan

The divining factor is the cost of energy. Be it electricity or gasoline or natural gas or solar.

We have so many Chines made products in the U.S. right now because it is cheaper for a maker to build there and then ship here. As soon as that simple balance is disrupted, that equation is disrupted as well. As soon as the cost of energy makes it more economical to produce locally with less shipping, then production returns state-side,

It’s not hard. It’s really extremely simple. In production it is cost of labor/cost of energy/cost of regulation. Effectively reduce any two of the three and you win.


16 posted on 10/23/2011 9:03:02 PM PDT by JoenTX (?)
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To: JoenTX

Since you understand how business decisions are made, suggest you check out the BCG research papers, as they show how the cost structure is changing vis China and the southern (non-union) US. A return to sanity in DC will help, but this trend is occurring largely based on what’s happening in China.


19 posted on 10/23/2011 9:29:59 PM PDT by bigbob
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