Chinese yuan rises - labor costs too - American's looking to move jobs
Outsourcing of jobs is not an American problem...and it does not make China a villain to American workers... it is an economic commentary on the cost of labor.
Today's Wall Street Journal carried a story on the rise of the yuan and the rise of labor costs - in China (read it here). So what are American companies going to do as a result of these changes? Those same American companies that moved American jobs to China in the first place?
They're going to move jobs out of China into lower labor cost markets, of course. Indonesia and Vietnam are good destinations.
You see - China is not the problem - for American workers it is "lower cost of labor.
American companies are rewarded by shareholders and by customers for bringing the best product to market for the lowest cost possible. This means constantly searching for lower labor costs, better efficiency, better products for the same cost, etc. You get the picture.
We live in a capitalistic society and earning a profit is a key driver in cutting costs. This is what's called a free market system and China is subject to it just like we are.
www.iangilyeat.com
Today's Wall Street Journal carried a story on the rise of the yuan and the rise of labor costs - in China (read it here). So what are American companies going to do as a result of these changes? Those same American companies that moved American jobs to China in the first place?
They're going to move jobs out of China into lower labor cost markets, of course. Indonesia and Vietnam are good destinations.
You see - China is not the problem - for American workers it is "lower cost of labor.
American companies are rewarded by shareholders and by customers for bringing the best product to market for the lowest cost possible. This means constantly searching for lower labor costs, better efficiency, better products for the same cost, etc. You get the picture.
We live in a capitalistic society and earning a profit is a key driver in cutting costs. This is what's called a free market system and China is subject to it just like we are.
www.iangilyeat.com
It seems to me that consumers are complicit in the loss of American jobs. When consumers focus on cost over everything else, they push industries out of America where labor is cheaper, and then blame the companies that leave. It's getting harder than ever to "buy American." Perhaps we should put America first and cost of goods second. American quality outstrips quality of goods made in China, Indonesia, etc. As a former retailer, I can say with certainty when I had to purchase Asian made goods, I had to repair far too much of it before I could pass it along to my customers. And let's not forget the EPA's role in pushing companies offshore! Excessive regulation is also a factor.
Reply to this
Agree it is very difficult to buy American. I know of a manufacturer in the US that can't buy all the raw materials they need from American sources - they simply are not made in America today. As for buying American over a low cost product made elsewhere, that's much easier said than done. Many people live pay check to pay check and just being able to afford what they need is their reality. Having said that, there is a trade-off each can make. Buying a higher quality product that lasts much longer can also work, but it does require a change of mentality.... and as for the regulation... easily agree. Over-regulation absolutely pushes jobs elsewhere. Whether that be in Washington state where Boeing wants to move some work to South Carolina or in the United States and companies decide to move those jobs outside of the country. We need business people in in our governing bodies who inherently understand this.
Reply to this