by David Hovgaard
(San Jose CA USA)
Here is the thing companies are manufacturing in china not because they need to but because they can make more profit. Most of the companies that have relocated off shore never had a losing quarter. But when you can pay next to nothing for your labor, provide zero fringe benefits and you can dump toxic waste in the sewer you can make even more.
All of this being said the cost of manufacturing in this country is only marginally more than what it cost to manufacture in china and then ship it here. The rise in prices over the last thirty years has not been caused by labor. It has been caused by an astronomical rise in the compensation of upper management.
For example they just gave Steve Jobs successor 388 million dollars as a signing bonus. That money is built into the cost of everything apple makes and the same holds true for everything that is sold in this country. If the top management would take a pay cut than they could stop manufacturing in China and bring the jobs home. But they wont because our economy has become nothing more than a pyramid scheme designed to reward only those at the top.
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