Monday, March 20, 2006

The Price Is Right

How ironic that we, as a country, have finally priced ourselves out of business. Today I went to the local plumbing supply house to buy a couple pipe fittings. The parts I needed were very small and did not cost much, but I couldn't help notice they were made in China. So I asked the counter guy if he had anything made in this country ... and yes, I was willing to pay more. He replied, "I got some made in Taiwan." ... not funny. I started to try and comprehend how something made across the world could possibly be sold here, in this country, at a lower cost than the same item made in the U.S.A. And then it hit me ... simple capitalism. Cheaper labor (unions, health care benefits, and retirement plans) and less expensive raw materials actually offset the price enough that it really is cost efficient to ship an item around the globe, and ultimately sell the product for less than the factory down the street can. This all leads me to one question; Who, globally speaking, would actually want to buy things manufactured in this country with such a high retail price?


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