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To: Dec31,1999
"It's true. No doubt Southack doesn't have to compete with SLAVE labor. He's got his, so the rest of you can just sod off."

Making money is easy. Most people simply don't want to truly risk their own wealth on such pursuits (the majority prefers to consume rather than invest the majority of their income, for instance). And that's all fine and well, as even *investing* is a bad idea if you don't understand the basics of economics (especially as demonstrated in a fair part of this thread).

For instance, Chinese "slave" labor, after shipping, Import/Export red tape, various taxes, and other such costs, when factored in with Chinese Productivity amounts to a savings of less than half of the highest American wages. The existing devaluation of the Dollar by 30% in the last two years, once the Yuan finally follows, will reduce that labor cost benefit down to a mere 20%.

For that 20% savings, you get Chinese quality (ick, choke, gasp) and a time delay based upon the length of transit shipping/recieving/inspecting times.

Should the Dollar devalue even further, then even that meager 20% labor "savings" will disappear.

Consider this: would you pay *MORE* for a Chinese car today than for a Japanese, German, or American vehicle of the similar class? What do you think will happen to Chinese imports by Americans as the Yuan catches up to the change in the Dollar? Will Americans buy more or less of those newly increased-in-price goods?

199 posted on 11/27/2004 7:43:01 PM PST by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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