“If Costs Rose In China, Jobs Would Return To The USA” Is Propaganda
If You believe the above quoted statement is true, sorry to deflate your bubble. But you are living in a fantasy land.
Yes, I know this is what you are fed in a daily diet of dribble coming from politicians, and those who wrap themselves in the American Flag proclaiming themselves the “Defender’s of America” all immigrants and foreigners out. Whether legal or illegal (and there is a big, big difference between the two groups).
However, if you really think about it and then look at what is happening, you will realize it is all “smoke and mirrors.”
But as the saying goes “If you repeat a lie often enough, it becomes the truth.”
Let’s explore this… OK?
China’s Costs Are Rising Dramatically
According to an article in the Washington Post entitled Rising Costs in China Seep Into U.S. Market — Importers Pay More or Cancel Orders The article reported:
A confluence of events — the weakening dollar, soaring domestic inflation, new labor laws, the end of some government export subsidies, the increasing cost of raw materials, more stringent product safety regulations, and bad weather — means the cost of goods produced in Chinese factories is rising fast.
Those increased costs are already showing up in import prices. After falling for years, the price index of goods from China rose 2.4 percent in 2007, according to the U.S. Bureau of Labor Statistics division of international prices. That’s the largest annual increase since the index was first published four years ago.
The added costs could compel U.S. companies to shift their manufacturing elsewhere — particularly to Southeast Asia, where countries such as Cambodia have already seen an increase in U.S. investment.
So… my friends… as you can see, 2007 was the largest increase of costs in China over the past FOUR YEARS!
As a result of that.. Were lots of new plush (stuffed) animal factories set up in the USA?… NO
Were lots of new shoe and boot factories set up in the USA?…. NO
Well, surely lots of labor intensive manufacturing jobs came back to the USA… Right?…. WRONG!
As an advisor to Obama said… (and I’ll paraphrase)… If the costs of making shoes in China was the same as it is in the USA, would all the shoe companies come to the USA to set up factories?… NO they would move on to another low labor cost country.
And proof of this is borne out by the statement of fact in the third paragraph quoted above….
Let’s Review…
The added costs could compel U.S. companies to shift their manufacturing elsewhere — particularly to Southeast Asia, where countries such as Cambodia have already seen an increase in U.S. investment.
Cambodia, Vietnam, and other countries are now seeing lots of USA investment, and the USA is seeing floods of goods coming from those countries.
So How Were People Fooled Into Believing This Nonsense?
It started with a story. Written in a newspaper. Written by someone who was sympathetic to a story given them by a special interest group… perhaps a labor union.
The story went on about how workers were losing their jobs due to “Foreign Competition”
I’m sure it spoke about how hard it was for the now displaced American workers to cope.
You can bet it did not talk about how it was the American workers responsibility to retrain themselves. To learn new job skills. How possibly the unions themselves caused this salary disparity with ever increasing demands for more, and more, and more.
Then for a while there was nothing.
Then another story about the hardships being faced by displaced American workers. Maybe about how a factory closed, and now the town was suffering huge un-employment.
Then slowly more and more stories. Then stories about worker abuse and insinuating ALL the overseas factories were “Sweat Shops” which of course they weren’t.
And in the case of China, how it was children and prisoners who were the workers in factories.
So that begs the question. If it was only children working in the factories… what were their parents doing? Sitting at home drinking tea? Especially when their one and only child was working?
Ask yourself, if you had only one child, would you want to send that child off to work, or would you want to give that child the best, most fun filled childhood you could. Especially since it was by law the only one you could have?… Yeah, I thought so.
And regarding the “horror” of using prison labor… All across the South and in many places in the north USA you will find prison labor. Not the old style “Chain Gangs” rather they are all in prison jump suits and do gardening work, cut grass by the side of highways, fill in at factories, etc. etc.
Then Comes The Next Step
After being fed a diet of sob stories, and your emotions being riled up, we are now fed stories about how it is us against them.
Fed stories about how “Them damn foreigners are taking our jobs.” Which of course the jobs are the company’s jobs not the workers.
Which reminds me of a joke by I believe it was the comedian Steve Wright who said “I lost my job. Well, actually I didn’t lose it. I go into the place where I used to work, and someone else is doing that job.”
Soon those that want to protect jobs paying artificially high salaries and benefits, turn it into a patriotic theme complete with a great patriotic slogan…
“Buy American”
Who can argue with that? Even if what they think they are saying is true is not true.
General motors cars manufactured in countries outside of the USA. Toyota’s and other cars manufactured inside the USA. Which is American? Why?
Back to the Story In The News
Other Countries Soon To Be Blamed For USA Inflation
The Washington Post story went on to say…
Among some economists, there’s a larger concern: that inflation in China — which was 4.8 percent in 2007, an 11-year high, and which forced the government to freeze prices of staples such as grain, edible oils and eggs — is adding to inflation in the United States.
With the US politicians trying to score points against China by claiming it’s currency is kept artificially low, and then the general medial under reporting if reporting at all the falling US Dollar against the Chinese Currency and how much it has fallen.
The Washington Post has done a great job or reporting it here.
Check out this part from the article…
For example, …
the dollar is down 12 percent against the Chinese yuan. Also,…
the tax rebate is down 2 percent, labor costs are up 20 percent. . . . Raw material costs on average are up 10 percent.
Ask yourself, have you seen many reports showing the US Dollar down 12 percent against the Chinese Yuan (RMB) in the last year? But it’s a fact.
This goes in to the Key For Propaganda
The key to propaganda is control of information. If you can control information, you can control the message. If you control the message, you control the people.
Like mass brainwashing. Like North Korea does… All outside societies are corrupt, but we are not. All other countries live in poverty worse than we do.
Then when they get a chance to see what is going on in the rest of the world…. Well, you get the idea.
Best Advice
The best advice is to try and find out who is actually behind the story. A politician? A labor union? A company? An investor? A person running some organization?
As the saying goes “Follow the money!”
One you do that, you will see who is behind and pushing the story. You will see what they have to gain. Then you can decide if you want to go along.
Remember, just because something is propagandised does not mean it is bad. Propaganda is neither good or bad… it just is. But you need to be aware and look after your own best interests.
Now regarding the story in the Washington Post… could it be the start of a propaganda campaign by politicians to remove themselves from the cause of inflation? Could it be from the “Buy American” crowd?
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