But China manufactures at least ten times more because their currency is undervalued. You call me an idiot but you don't even understand how China manipulates currency so companies can pay people 50 cents an hour( this was true for 30 years ).
Ok let me try to make this simple for all of you free traders who don't understand. Let's say I start a company in China making shirts. So I pay a china worker 50 cents an hour to make shirts. I also have a company in the U.S.A but I have to pay a worker $20 an hour. Let's say the fabric to make a shirt costs $1. My worker in China makes 10 shirts per day. so 8 hour work day X .50 cents per hour = 4 + $10 IN U.S.A = $14 . IN U.SA I have pay a workers 20 dollars an hour so I pay $160 for that worker to make 10 shirts ,$160 + $10 = $170
So the minimum price I can sell the 10 china shirts is $14 , while the minimum price i can sell the 10 American shirts is $170.. the what the china worker produced is worth $14 but and the U.s. worker worth $170 (at least).
So stats in dollars show here that U.S. workers are at least 10 x more "productive" and that the U.S manufactures 10 x more than china but it doesn't as each worker makes just 10 shirts, the same production.
So china really produces 10 x more if you use real production instead of currency as stats. This is shown when you look at real production of items as in China making most of electronics for 9 billion people earth and making most of the steel if you count it in tons.
The fact is China's currency is undervalued and the U.S. currency overvalued.
Many workers were paid even less in china , many 20 cents an hour and you think that people can live on 20 cents an hour? And you call me names because I understand this when you do not.
At least this should be corrected on the world stage and the U.S. shouldn't trade with any country that manipulates currency like China does.But you free traders are for China destroying the U.S. and all who live here. yeah you are so smug living off of debt and past wealth. It is you free traders who are the problem and helping china destroy the U.S. YOU free traders agree with all of the politicians who are all for China and have sold out the U.S. to China. not a single politician has done anything to fix the currency problem nor the trade with China problem etc. 99% of the people I talk to , real Americans agree with me that we should make things in America and have our stuff made in China. You agree with politicians over real Americans.
No they don't.
You call me an idiot but you don't even understand how China manipulates currency
I've asked you before, explain. Spell it out.
Be as precise as you can.
Ok let me try to make this simple for all of you free traders who don't understand.
Irony is ironic.
My worker in China makes 10 shirts per day. so 8 hour work day X .50 cents per hour = 4 + $10 IN U.S.A = $14 . IN U.SA I have pay a workers 20 dollars an hour so I pay $160 for that worker to make 10 shirts ,$160 + $10 = $170
Here's where your 1st grade math fails. The American worker is 80 times more productive. Your Chinese worker makes 10 shirts for $4 and the American makes 800 shirts for $160.
You reminded me of hedonics. I was looking for an excuse. . .
Hedonics a way of assigning a monetary value to improvements and adding that dollar-value to the GDP instead of using the nominal dollar amount. This makes sense vis-a-vis technology because its value explodes while simultaneously its cost gets cheaper. So less is spent for lots more production.
"so China manufacturing really 50 times greater than U.S."
I am not sure that hedonics apply because where's the productivity improvements? We're just talking exchange rates here. Aren't we?
However in this pdf file is an explanation by someone who knows what I tried to described;
to wit, "the speed and capacity of computers increases very rapidly currently, computer quality is increasing about 13 percent per year. Computer quality generates increases in real output. If a production system is computerized and computer quality is increasing, then each time a new computer is added, or replaces an obsolete one, the system can produce more. This is conceptually true for nearly any kind of production system for instance, processing of retail transactions, airline reservations, electronic banking, or computer control of automated production lines in manufacturing.
"If these quality improvements are not measured as part of computer output, then real computer output will be understated. For instance, in 2000, nominal investments in computers rose by $19.8 billion dollars, an increase of 20.8 percent. However, the real value of computer investment rose by $86.4 billion. The real rate of change was 39.7 percent, nearly twice as large as the nominal rate of change of 20.8 percent."