Why Are Imports Often Cheaper? – In Many Ways The Playing Field is Far From Level

May 5th, 2008

Since I have the dual experiences of having lived in Asia as well as founding www.MadeinUSAForever.com, I have a unique background and perspective. I often get asked why products coming from abroad are cheaper. Hourly labor cost is obviously pointed at, but is actually just one factor involved of many where the USA is at an artificial disadvantage.

Here are some other major factors:

-The cost of meeting environmental pollution requirements. Meaning some countries either officially or unofficially (bribes) allow manufacturers to pollute heavily, while American manufacturers spend millions on pollution control.

-The cost of maintaining a safe working environment. Low safety standards means a significant cost advantage for China, etc. This is a lot of money, not just in the lack of fair reimbursement for worker injuries, but also because it allows them produce more volume at a lower cost.

-Currency. Many countries, particularly China, are artificially holding their currencies weaker than their true value. This factor alone can make products produced there 40% cheaper or more.

-Lack of workers ability to legally organize or question the government. Indeed challenging the company in many cases means challenging the government itself, which is literally suicidal. Not many countries in history have held such total control over their people as China. The higher the degree of control of a government over its people, the more they can be exploited. This is another huge cost differential.

So you see, there are many factors that make the playing field far from level. Products are brought in by the big retail chains without their true costs being a factor. This is undermining America’s ability to compete.

MadeInUSAForever Blog

Why Are Imports Often Cheaper? – In Many Ways The Playing Field is Far From Level

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