Why it’s now cheaper to produce some goods in the South than in China

Washington Post ^ | 8/4/2015 | Ana Swanson

[GoneSalt]

Before World War II, red-brick textile mills that processed cotton and wove it into cloth were all over the southern United States, dotting the Carolinas, Georgia and Alabama. But in the last 50 years, automation, free trade agreements and competition from countries like China whittled down the historic industry until it was almost gone.

Now some textile jobs are coming back, but on much different terms. As the New York Times reported Sunday, some Chinese manufacturers are setting up shop in the United States, after finding it cheaper to produce their goods in the American South than in China.

[navet97]

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

Maybe they’re allowed to pay the Chinese minimum wage of $0.02 an hour! Then eliminate the shipping costs and import tax.

[Iscool]

In the same time frame, U.S. wages have risen only 27 percent

Really??? American wages have been stagnant for the last decade...I wouldn't put much stock in any of this article...

[John S Mosby]

Because the US govt. owes CHINA trillions, and gives away our lifeblood and property, either by proxy or by subsidies to mollify the chi-com apparatchiks that come to the US to employ, like slave labor they are used to— to employ what low wage help they can get. And they pick up buildings from the abandoned factories— American owned buildings— they pick those up for a SONG.

All helped by the financial thugs, and their friends in Congress. When Congress could be subsidizing US owners, as other countries subsidize their owner class.

That’s how.

[John S Mosby]

Bingo. the ONLY one.

[John S Mosby]

More like— they use prisoners of the State. And labor is free and housed in a prison.

Proven.

[John S Mosby]

All working overseas— if they can. And, uh, the college has a lot of “foreign” students, subsidized by NC and the fedgov, to attend. All propped up.

[Red Badger]

.....and the quality of the products is terrible.....I wonder why?...................

[kalee]

I live in a small town in the South. When we moved here 17 years ago the mills were open and the town had a good employment status. The mills have since closed and been razed and unemployment is astronomical. Mills were not our only industry, the town was home to many other manufacturing companies, all but one now gone. Unemployment is astronomical.