If the trade deficit is a great exaggeration, how come it is so difficult to find something here that ISN’T made by the ChiComs?
What about an added value? With all that 65 cents on importing materials you still get your extra 35 cents and also a dollar to feed transportation and management guys.
That makes Chinese surplus and article is misleading pushing the Chinese political agenda which is about to change the rules to keep more money there. They want to increase costs. Not an impossible task considering the West surrendered it’s industrial capability to a ‘cheap’ labor. It won’t stay cheap this way.
Which, by my calculation means there should be a duty and or tariff on good 'ole Barbie. I would say a 10% on the $8.00 retail cost would be reasonable. I would also lower the corporate income tax rate for all to almost zero. That would motivate local production.
On the other side of the ledger, when a factory is moved to China, we report this as a US export to China.
I would like to think this is true, but so much of what’s on the shelves says “Made in China.”
But rules of origin make it seem that China gets $2 each for Barbie dolls
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This is stupid logic. Ya think the americans selling the dam dolls get to keep the $9.99 each? No of course not. There’s distributing, marketing, and royalties to be paid.
Shoah, Mistah Jie. I believing you vewy much. ;-)
This is how evil auditors think:
REVENUE: Gross Sales Price in US: $9.99
LESS: Cost of Chinese Manufacture:
Materials .65
Freight Out & Management 1.00
Labour & subcontractor profit .35
TOTAL (2.00)
NET REVENUE to US company $7.99
In addition to the $2.00 paid to the Chinese company, the US company would incur costs in distribution, marketing, management, design, etc., in the US, but the numbers and information via China still seem out of line, especially the part regarding materials.
Isn't plastic manufactured from oil? When did the US start exporting oil? Isn't the US textile manufacturing industry pretty much non-existent?
Sorry, Obama & Communist friends. The numbers are so out of whack to be along the lines of the most unbelievable propaganda. (Some of us actually learned statistics and math in school.)
Thats an apples and oranges argument.
Trade balances have nothing to do with profits/losses. China gets $2 / doll - the US pays it causing a $2 surplus for China and a 2$ deficit for the US. Adding up all the imports / exports from both countries to each other results in the Trade Balance between them.
That China spends say $1.99 to manufacture the doll is THIER problem - they are the ones selling it for only $2 because the are happy with the profits!
Furthermore, if you really want to get into the entire expenses aspect - then you also have to look at what the Chnese do NOT spend while manufacting that the US does (Environment, wages, work conditions, etc ...)
Sounds like the Liberal Free Trade Globalists and the supporters of Free Trade with Communist China are trying to spin the figures that they used to claim “does not matter” (trade deficit with Communist China). Americans have figured out that the Free Trade Communists are full of BS
These are the facts:
There is an outrageously high trade deficit the USA has with Communist China
The trade deficit with Communist China hurts the American economy
You cannot create a job in the United States of America when you ship the American job to Communist China
You support Free Trade with Communist China...you are a Communist
INVOICE
Capital, Goods and Services stolen and extorted by the Peoples Republic of China
FDI, Intellectual Property, technology, know how . . . . . . . . . . . . . . .$ 2,500,000,000,000.00
Payments received from the Peoples Republic of China . . . . . . . . . . .$ 1,000,000,000,000.00
Amount due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,500,000,000,000.00
Your Treasury certificates are your payment receipts. Thank you.
And I won't intercede to save you when they do, Cardhu. I don't like you either. You're kind of a douche.
Added Value...that’s exactly something that came to mind lately when I try to grasp this issue. For example, Apple designs an iPhone in California and it gets made in China and shipped here and all over the world...let’s say for $200 a pop...that whole value gets credited to China, but the design from the US that turned that product from $50 of parts to $200...does not benefit the US stats by these accounting rules, but instead goes all to China. So Apple would show a huge trade deficit with China even though they get a lions share of the profits (due to that $150 value added), their stock skyrockets, benefitting the shareholders (mostly in America)...that doesn’t make a whole lot of sense but that’s how it works as far as I know.