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Reply to "China is trolling US Capitalism on TikTok"
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[quote=Anonymous][quote=Anonymous]I am living for all this drama on my FYP! It was such an entertaining weekend. I've said it over and over: no American manufacturing can compete with China. Chinese manufacturers make our products for pennies to ensure we have maximum profitability. Our intermediary works to keep costs low for us. I don't think Americans truly understand the savings of manufacturing in China or other countries. My small company has 4 products: Product A: produced by China for $0.71 ea Product B: produced by China for $0.93 ea Product C: produced by China for $1.92 ea Product D: Produced by China for $3.45 ea If we do 1000 units of each product, our costs are: A: $710 B: $930 C: $1920 D: $3450 Total: $7010 Even with paying a 104% tariff, it's still cheaper for us than when we manufactured in the US. Here are the prices we sell these products for: A: $19.95 -> $19.24 ea profit x 1000 units sold = $19,240 total profit B: $29.95 -> $29.02 ea profit x 1000 units sold = $29,020 total profit C: $39.95 -> $38.03 ea profit x 1000 units sold = $38,030 total profit D: $49.95 -> $46.50 ea profit x 1000 units sold = $46,500 total profit When we had an American manufacturer, our costs were so much higher and our profit was so much less. [/quote] If we were truly going to bring manufacturing jobs to the U.S., this would have been done with an investment in infrastructure and tax incentives for companies to hire American workers. Because as you’ve illustrated, there is no reason for companies to build manufacturing plants here. And to the extent they do, they will use robots. These aren’t going to be good paying jobs with union benefits. I cannot believe our own government is trashing the economy and causing unemployment in the white collar sector to “create” fictitious blue collar work. And then apparently laid off feds are supposed to fill these manufacture roles so the people who supposedly need these jobs would still be unemployed because the feds are taking the jobs. It’s such a stupid plan. [/quote]
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