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Why it’s now cheaper to produce some goods in the South than in China
Washington Post ^ | 8/4/2015 | Ana Swanson

Posted on 08/04/2015 10:33:36 AM PDT by GoneSalt

click here to read article


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1 posted on 08/04/2015 10:33:36 AM PDT by GoneSalt
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To: GoneSalt

How can the Chinese produce in America cheaper than Americans producing in America?


2 posted on 08/04/2015 10:40:02 AM PDT by Cowboy Bob (Isn't it funny that Socialists never want to share their own money?)
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To: Cowboy Bob

Unions?


3 posted on 08/04/2015 10:43:39 AM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: Cowboy Bob

By using illegal labor while the government looks the other way.


4 posted on 08/04/2015 10:44:49 AM PDT by Ingtar (Capitulation is the enemy of Liberty, or so the recent past has shown.)
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To: GoneSalt

Wow. What a crock-o-poo. Glad jobs are MAYBE coming back, but why can’t American companies figure this crap out?


5 posted on 08/04/2015 10:46:39 AM PDT by vpintheak (Man up and bring it politicians!)
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To: Cowboy Bob

Cheaper cotton maybe?


6 posted on 08/04/2015 10:46:57 AM PDT by chemical_boy
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To: driftdiver

Do you mean that workers at Chinese owned plants won’t be unionized...buy workers at American owned plants will be unionized?

If the cost of manufacturing (including labor) is the same, then it means that the Chinese are willing to accept a lower profit margin than the Americans. Might pay their salaried workers less too.

Will be interesting to see if they succeed.


7 posted on 08/04/2015 10:48:01 AM PDT by Cowboy Bob (Isn't it funny that Socialists never want to share their own money?)
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To: Cowboy Bob

Nothing in the article says that Chinese can produce goods cheaper in the U.S. than Americans can.


8 posted on 08/04/2015 10:49:02 AM PDT by Parmenio
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To: Parmenio

Yes, I understand that. I would like to see a side-by-side comparison to see how they can beat us in our own back yard.

The cost of material should be the same. Cost of labor (minimum wage) should be the same. So, if a Chinese manufacturer and an American manufacturer is working in the same town, how could the Chinese undercut the American firm?

Is it due to salaries to the management? If it’s a publicly traded company, do they have to meet financial expectations of the shareholders that Chinese companies don’t have to worry about?


9 posted on 08/04/2015 10:55:37 AM PDT by Cowboy Bob (Isn't it funny that Socialists never want to share their own money?)
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To: Cowboy Bob

Maybe they expect the same kind of regulatory environment they have in China. Ya know anything goes.


10 posted on 08/04/2015 10:55:38 AM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: Cowboy Bob

Why do you say that the Chinese can produce goods in the U.S. cheaper than Americans can?

Please provide some evidence to support your contention that they are “beating us in our backyard”. I doubt if you can find any.


11 posted on 08/04/2015 10:59:30 AM PDT by Parmenio
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To: Cowboy Bob

I was in Asheboro, NC a year ago, at a campground. I heard a humming sound in the distance and asked someone what it was. He said it was the only cotton mill still running in North Carolina.


12 posted on 08/04/2015 11:00:11 AM PDT by cymbeline
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To: Cowboy Bob

Southern textile workers were not as a rule unionized. They rejected unions.

There are several big Southern textile firms that still have mills in the South. They are privately held.


13 posted on 08/04/2015 11:02:12 AM PDT by WashingtonSource
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To: Cowboy Bob

No shipping costs? Plus a factory worker in China is usually fed and housed at the factory like in a dormitory................................


14 posted on 08/04/2015 11:07:59 AM PDT by Red Badger (Man builds a ship in a bottle. God builds a universe in the palm of His hand.............)
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To: GoneSalt

No mention of the thieving garment workers’ unions that drove costs through the roof and forced manufacturers to go overseas to begin with.


15 posted on 08/04/2015 11:09:55 AM PDT by IronJack
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To: GoneSalt

Here’s the “money” statement” in the article:

“As China’s economy has developed, wages have risen, and so have the costs of land, energy and other raw materials.”

Plus, our relative energy costs have plummeted and producing in the US gives companies access to free trade with Mexico and Canada through NAFTA.


16 posted on 08/04/2015 11:18:13 AM PDT by riverdawg
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To: GoneSalt

Many American textile firms were destroyed by so-called free trade, and now the Chinese companies that largely destroyed those firms are moving the highly automated yarn mills back to the US since other factors make it about as cheap to produce in the US.

But the labor intensive sewing factories are staying in even cheaper labor nations than China: Vietnam, Cambodia, Laos, Bangladesh, Pakistan, etc.


17 posted on 08/04/2015 11:20:38 AM PDT by Will88
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To: riverdawg

Don’t worry, Obama is waging his war on natural gas and coal to drive energy prices back up, and jobs back offshore.


18 posted on 08/04/2015 11:22:40 AM PDT by Wayne07
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To: GoneSalt

As far as I know, there’s still a College of Textiles at NC State—Going strong after 110+ years.


19 posted on 08/04/2015 11:37:17 AM PDT by Arm_Bears (Biology is biology. Everything else is imagination.)
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To: vpintheak

Chinese companies have the capital American companies used to have.


20 posted on 08/04/2015 11:38:00 AM PDT by henkster (Where'd my tagline go?)
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