[gipper81]

Hypothetically: a computer disc is stamped out in Red China for a buck; it is sold world wide for $150 bucks; where does the added value go?

With your example: $1 goes to (outsourced) raw materials, $150 is revenue per unit and in-between goes to marketing, overhead and PROFIT.

You've identified the problem. We can't make widget for a buck or two, nor should we want to. There's no money in it.

[bruinbirdman]

"We can't make widget for a buck or two, nor should we want to. There's no money in it."

Red China was a hypothetical. Americans can only own 49% of those companies.

But all over the world, the USA owns the means of production and ships profits and jobs to Americans back home.

How does little bitty Denmark and Netherlands maintain such a high per capita income? Foreign investment in the means of production.

BTW the USA produces more steel today than it did 30 years ago. In 2007 alone, companies that were founded by entrepreneurs backed by venture capitalists provided 10.4 million American jobs and generated $2.3 trillion in revenues (a sum equal to France's GDP).

yitbos