Quote:
Originally Posted by sicone
You are correct with a lot of your regurgitated facts, however, you are leaving out the small minor part of the cost of doing business in the US. The taxes, federal and state, the regulations and restrictions, the restrictions on mining, possession of, the fees and restitutions for obtaining the raw materials needed and to 'help' repair the local environments from where they were obtained. And that's just the government's greedy hands out.
Then come the workplace and the employees. You need a place to make your goods or to work like an office depending on your business. This place will need annual and often inspections along with things like electricity, phone service, the Internet, and many other things, again based on the type of business. And the employees, labor laws, unions and more. You can't employ children and no slave labor wages along with restrictions on minimum pay and maximum hrs work. There are no workers here for pennies on the dollar. Plus medical insurance, unemployment insurance and more.
Don't forget the legal fees... I don't think anything needs to be explained here unless you aren't familiar with the US legal system and the millions of frivolous lawsuits filed daily.
I'm sure there are many more business expenses for US-based operations, but all of the above should help to point you in the right direction on things you have no clue about in reality starting with the difference between 20% profit and 700% profit.
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you are totally correct - but paul also forgets another thing because he is just standing on a fixed point and do not look even 1 minute in the future.
he is complaining that 1000 workers from china is killing 100 US-jos what is in some case true because of what you have mentioned.
BUT !!!!!!
if a product can be produced on a price where it have a much bigger group of buyers in the same time there are 1000 sales man jobs born. so it is just lose (or not lose because paying more than nessecary is a lose) on what THEY can do better and win on what americans can do better
when internet came up everyone in the world was afraid that it will kill jobs. and YES it did but it made so many new ones that this is more than balanced.
there is one important law of nature what we can never beat and what makes whatever we do (also in markets) just up to a point controlable. this law of nature sais that there can not be a mountain if there is no dale and water canīt go only up to the clouds - it have to fall back. if you try to stop this circulation at one point you will fail.
greetings
thommy