Forum Discussion
4X4Dodger
Dec 14, 2014Explorer II
As long as most Americans want everything they buy to be the LOWEST POSSIBLE price goods simply cannot be made in the USA. It is the American consumer and their need for the cheapest price that is the real determinor of jobs going overseas. A good example is a computer Chip Factory producing Something like the Intel Core I7 Chip.
To build a factory in the US to meet the worldwide demand would take nearly 1 BILLION dollars. This includes planning permissions, Environmental impact reviews, Cost of Land, permits, construction, taxes and this is all before the cost of labor gets factored in. In China the same factory, just as high tech by the same architect would be only a few hundred Million to build. This is a huge savings before the labor enters the picture.
It is not all about cheap labor. In addition the Chinese (and other countries) are willing to give huge tax incentives, free or low cost land and great infrastructure at moderate costs...This makes this decision to manufacture overseas pretty clear for most boards of Directors.
So what do you think your new computer would really cost when it's single most expensive part would be made here instead of China or Indonesia or Cambodia? You certainly wouldnt be getting that fancy new Tablet or I Phone 6 for the price you are paying now.
To build a factory in the US to meet the worldwide demand would take nearly 1 BILLION dollars. This includes planning permissions, Environmental impact reviews, Cost of Land, permits, construction, taxes and this is all before the cost of labor gets factored in. In China the same factory, just as high tech by the same architect would be only a few hundred Million to build. This is a huge savings before the labor enters the picture.
It is not all about cheap labor. In addition the Chinese (and other countries) are willing to give huge tax incentives, free or low cost land and great infrastructure at moderate costs...This makes this decision to manufacture overseas pretty clear for most boards of Directors.
So what do you think your new computer would really cost when it's single most expensive part would be made here instead of China or Indonesia or Cambodia? You certainly wouldnt be getting that fancy new Tablet or I Phone 6 for the price you are paying now.
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