TriX wrote:
I’m not sure that is always the case. That implies that the company will do whatever it takes to maintain their margins including raising prices, but in a competive economy, that makes their products less competitive, so they may instead decrease expenses (including executive compensation packages), make their production more efficient, improve their sales/marketing, etc. Remember that same capitalism will drive prices so that everything being equal, the lowest price will have an advantage for equivalent products. On the flip side, it may cause them to move production offshore (as is happening now to the detriment of our manufacturing sector), UNLESS the tax laws make that unprofitable, which is the idea.
Americans can always choose to embrace the lowest price, regardless of the National (or local business) good, but the result will be to continue to move our manufacturing to China, enhancing the competitive position of Communism, slowly destroying our manufacturing infrastructure, killing workers futures and increasing the trade deficit. Make no mistake, we are in a trade and form of government war with China, and if we keep buying the lowest price, regardless of the company of origin and allowing intellectual property theft, we are helping them prove that an authoritarian government is more viable.
I’m not sure that is always the case. That implies... (
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Races to the bottom seldom turn out well. We Americans cut our own financial throats when we priced ourselves out of world labor markets AND pulled the quality out of our products. We did it again by buying the lowest cost things made in the far East that we could find at discount stores. Now we need to wake up and make some changes.