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To: GraceZ who wrote (13538)	1/16/2002 11:12:57 AM
From: AC Flyer	Read Replies (2) \| Respond to of 74559

Grace: You wrote: >>Why is the cost of steel so much higher in this country? Why is labor so much higher in this country? The US can't compete with either from China.<< It is my opinion that we should not be trying to compete with Chinese labor costs. We should aspire to have labor costs that are many times higher than those in China for ever. American labor should be doing work that is much higher value-added than turning iron ore into steel or steel into rivets. The companies they work for should be designing and building exciting, differentiated manufactured products (and software and services, of course) that Americans want to buy (incorporating low cost Chinese rivets). This is of course the theory of comparative advantage that you can find in any economics textbook.