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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: stan_hughes who wrote (4813)	3/10/2008 3:09:48 PM
From: Real Man	Read Replies (1) \| Respond to of 71407

Germany and Japan manage to run manufacturing profitably, I don't see why we can't, with a lower dollar. It's true that cost of labor in India and China is much lower, but so is productivity, even though some may not support that view. I'd be more optimistic - the effect of lower dollar will bring back manufacturing, provided that no Zimbabwization is attempted to save fictitios capital (a possibility). In the latter case the country will be destroyed. The trend of lower manufacturing employment is global, and is in part explained by increased productivity. The output has not really changed that much.

To: stan_hughes who wrote (4813)	3/10/2008 4:28:13 PM
From: dybdahl	Read Replies (1) \| Respond to of 71407

In Denmark, we have production with more than $150 per day as minimum wage for the employees. It's everything from toys (Lego), drugs (Novo, Biogen-Idec etc.), machines, microphones, kitchens, wooden floors, you name it, and we're competitive. We have a significant export of kitchens to China, made with our wage levels. Lego tried to outsource some of their production to east europe, where wages are lower, but pulled some of it back, realizing that it was more economical to keep it here. It's a matter of productivity and quality, and U.S.A. is in a good position to create the high quality products of the future.