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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (315628)	12/15/2006 2:40:45 AM
From: Elroy	Read Replies (1) \| Respond to of 1574477

So you didn't agree with ANY of the points I made? At some point protectionism might replace globalization With imported products you have the additional cost of shipping and delivery time, and intangible costs of distance supervision. With advanced manufacturing (robotics) the cost advantage of overseas manufacturing may decline or go away. (Why does Toyota build Camry's in KY instead of China?). As third world countries progress, their wages will rise, making them less competitive. Most service jobs can't be exported; Taro can't get a worker in China to mow his lawn. "Information workers" are probably under the biggest threat, not labor. Data flows much faster and cheaper than container ships. As third world countries (is China a third world country anymore?) get more prosperous, they should start to import more of our domestic products... assuming their protectionist policies get more liberal. I agree with most of them, but Thursday night here is my weekend start, so after about 11am Florida time (8pm here) I got other stuff to do :-) All your points are correct, but they serve to lessen the rate of equalization, and make the final rate somewhat less than 1 to 1 - they don't all out prevent it. Nevertheless, IThe US has been so wealthy for so long, and the equalization process is relatively slow, and China and India (2 billion people) are so huge, and so much below the US on average economically, that the trend (labor's wages in the US declines while in those two countries is increases) will go on for a while. Its just market forces in action, I don't see how you resist it. If the US goes "protectionist" as you say, and decides to pay US auto workers $40 per hour + benefits, and slap huge tariffs on cars imported from Mexico or wherever, it just spells the eventual doom of the industry in the US. 40 years later we'd be buying nice cheap cars from China instead of clunky expensive GM and Fords from Detroit.