DIRTY HARRY wrote:
Conservatives Trying to maximize their profit going after the cheapest labor and lowest processing costs. It's ALL about the money. You answer makes no sense.
Dirty Harry is correct. It has little to do with politics, it is ALL about the money as it has been for decades when manufacturing goes overseas.
Let me give you an example. I worked for a small manufacturing firm here in the US. We manufactured a small electronic device with a parts cost of around $300 and a labor cost of around $95 giving us a total cost of around $395 each. The item then sold for around $700, giving the company a profit of $305.
The company had an agent representing a manufacturing firm in China to quote the device and they came back with a quote to build, test, pack and ship the items to our dock ready to sell for $120 each. At this cost the profit went to $508, giving the company a 66% increase in profit. since we sold several thousand of these each year, this was a substantial increase to the companies income and profit.
Before you say the overseas items will be cheaply made, it does not have to be. They will make them cheap if you desire. But the overseas contractors will also abide by whatever specifications you require. However, even when adhering to your quality standards and specifications, the items will still be considerably lower in cost.
This is why so many companies go overseas for manufacturing. While manufacturing wages do not seem that high here in the US, they are often often many times higher than China, India or other Asian countries. In addition there are higher costs in health insurance, environmental costs, unemployment insurance, workman's comp., taxes, etc.
Could all these items be made here in the USA? Yes, no doubt. Will Americans be willing to pay 2-3 times the cost of a USA made item compared to the overseas made item? I doubt it. It is the main reason that stores like Walmart and Harbor Freight are so successful, most of the items are made overseas and sell for cheap. Americans are addicted to cheap and will refuse to pay for the real costs if made in the USA.