We're Screwed

[Dottore]

Originally posted by Patton
If you do your homework, you know where the parts come from, unless you don't care.

I was referring to the Chinese-made content of a new 997.

[fastpat]

I buy things strictly on a quality versus cost basis. That rewards folks who make things well that are cost effective.

Buying based on where a thing is made often rewards poor quality and slovenly business practices.

A couple of things are certain; market forces never sleep, and rewarding certain behavior always gets you more of that behavior, for good or ill.

[dd74]

Originally posted by turbo6bar
Hypothetically, if we all "Buy American," there must be some consequences, right? It can't all be good, eh?

I'd hate to see a kneejerk reaction cause an unintended injury.

The consequence is in the ideological message such an action would send out. Yes, we can all buy nothing but (for example) Cadillac CTS sedans. But still, someone in the far east will be paid for the transmission, which is a Japanese part, IIRC.

But that's for the short run. If in the long run we bought only American-made products, even American products made abroad, the psychological tones of doing such would surely reach the Far East. At best, we'd be labeled xenophobes with nationalistic tendencies, which could scare off quite a few foreign investors, IMO. At worst, doing so would bankrupt some fairly large American-based companies, and put some strain on our economy.

But don't forget, it goes hand in hand. The biggest auto seller in China is Buick.

[HWgeek]

Although mfg is done in asia/china, not all the parts come from china. Some come out of Japan and Taiwan, although they probably have lines in china due to the low cost and no unions and no environmental regulations.

Boeing is in the Chinese market, their biggest overhead is - security. Constant theft of parts and replacements with shoddy substitutes. I flew on an Air China plane. never again. I have been in rust a wrecks that were safer. shudder.

Recall Mexico and NAFTA. Also note that mexican produced goods got more expensive as more money flowed into that country. When it came time to upgrade assembly lines etc, companies went to china, since the mexican standard of living and base pay went up. The difference with mexico and china though is that the mexicans didn't steal and copy everything they were building. Nor did they have some desire to surpass the US.

As a side consequence - its getting hard for China and other Asian countries to feed their people. All the younger people are rushing into the assembly plants, compared to farming its easier work, and much more money.

Vietnam and Pakistan is now where most textile goods are being produced, like sneakers and jeans. Why? it got too expensive in China!!

John Ratzenberger's Made In America is an interesting show... Toro was featured as well as other companies..

[Rich76_911s]

Originally posted by Porsche-O-Phile
The Chinese will call in all U.S. debt and bankrupt us overnight.

The only hitch in this equation is that the US government prints the money that they owe. So when the bill comes we are going to print all the money the chinese want. Only problem is it'll be worth nothing. Not to say that doesn't screw anyone who has been saving in US dollars, but that is my prognostication and I am sticking to it.

Also, Americans make up 20% of the purchasing power of the world. Without us China loses 1/5 (or more) of all its income. They need to keep buying our debt, because if they stop then they lose that income. China sustains life off of the money we spend. If Americans were smarter consumers we do not "need" China to survive. So do not sell out America just yet, we did just borrow at between 1 and 5%, if you have to go into debt America just picked one of the best times in history.

[fastpat]

Originally posted by Rich76_911s
The only hitch in this equation is that the US government prints the money that they owe. So when the bill comes we are going to print all the money the chinese want. Only problem is it'll be worth nothing. Not to say that doesn't screw anyone who has been saving in US dollars, but that is my prognostication and I am sticking to it.

You could be right about that, but it would hurt individual Americans far more than Chinese. Think about what Porsche parts would cost.

Also, Americans make up 20% of the purchasing power of the world. Without us China loses 1/5 (or more) of all its income. They need to keep buying our debt, because if they stop then they lose that income. China sustains life off of the money we spend. If Americans were smarter consumers we do not "need" China to survive. So do not sell out America just yet, we did just borrow at between 1 and 5%, if you have to go into debt America just picked one of the best times in history.

Hmmmmm.

[widgeon13]

Originally posted by Patton
My disdain is for attitudes like yours Tim! I can't think of any country investing in the USA like China. Educate me and I'll be quite.

The situation is actually very complex and has developed over many years, different party leadships and evolving corporate philosophies.

I'm tired of people looking for simple solutions to complex problems simply because they make a post to OT. If you are truly not happy with the situation do something about it and educate yourself instead of asking others to educate you.

People have been debating this problem for years and someone here wants it resolved overnight. If you really understand the situation then you can start to find a solutions.

[Flatbutt1]

Originally posted by Rich76_911s


Also, Americans make up 20% of the purchasing power of the world. Without us China loses 1/5 (or more) of all its income. They need to keep buying our debt, because if they stop then they lose that income. China sustains life off of the money we spend. If Americans were smarter consumers we do not "need" China to survive. So do not sell out America just yet, we did just borrow at between 1 and 5%, if you have to go into debt America just picked one of the best times in history.

+1

[Rondinone]

Originally posted by Patton
Can we reverse it?

My last pair of Rockport shoes were made in china, versus taiwan for previous pairs. They are total junk, and didn't last 1/3 as long. Now I buy Red Wing, which are only made in the USA. I have had a pair for 2 years, the sole is worn out but the shoe is perfect inside and out. I'll get them resoled and wear them another two years.

As for reversal, it will happen naturally when the cost of transportation of goods reduces the labor advantage. This is a theory forwarded by Matt Simmons, one of Bush's energy advisors. Spend a few minutes to check out some of his presentations:

http://www.simmonsco-intl.com/research.aspx?Type=msspeeches

[Chocaholic]

Simply put....we live in a global economy. It's no longer the 1960's in the US. But rather, it IS the 1960's in China. The US is no longer an industrial power. Instead, we're an economic power (among others)which, in a way, is an industry with even more possibilities long term.

No worries. The laws of commerce will rise to the top despite individual efforts to supress them. It's supposed to work that way.