The fact that T.V.'s, toothbrushes etc, are coming down has LESS to do with them, or most of their components made elsewhere, and MORE to do with technological advances, both in processing and designs.
LCD, and Plasma, are the MAIN reason for recent drops, in CRT's(my last field) as always, these were expensive when released, but now are dropping rapidly in price as volume and quality in production increases.
Better look deeper...

 

You can't replace good old common sense and smart thinking with the "Macro-Economics and Micro-Economics theories..." I've heard that one too many times. With all the overpaid professors in these subjects you'd think we'd have the worlds problems solved...

 

Do you honestly believe that one day there will only be one or two car companies in the world? For starters, do you realize that this scenerio is simply not possible in our life time, thus making your original arguement *completely* irrelevant?

As for the other stuff in your post, I don't know where to begin ... I think you really need to get a grasp on how things really are before you start ranting about 'foreign' producers again. Honda and Toyota are as "domestic" as GM and Ford are, period. Both Honda and Toyota USA have their assembly, headquarters, management, and stock/ownership based in the US. They source their parts from other countries, but which is no different than what GM/Ford do. Who are the owners of Toyota and Honda USA? Where do the profits go from US operations? They go to anyone that buys their stock on the New York Stock Exchange - americans.

You still haven't named just one manufactured product that US no longer produces that's become more expensive...

 

"Better look deeper"? Umm, are you serious? Do you think anyone here doesn't already know this from the time they get to middle school? Technological advances are taken as a given. Lets look at margins then. If those foreign producers that have driven out US manufactures are price gouging now as the other poster claims, where are those sky high margins?

 

Oh, the irony...

 

Eddie, YOU were the one talking about macro-economics weren't you? So how do you expect me to use one company as an example? That's IRONY Eddie. IF a country's economy becomes so fat, lazy and inflated (USA) that products from other countries are all cheaper what happens? There is either protectionist measures taken or there is a recession. During that recession (like the one in the 1970s) things that aren't competitive go bankrupt and unemployment ensues. Other industries take up the slack in a minor recession, like high tech and software took over from RCA and Zenith televisions.

Sooner or later though the economy collapses and people are so poor they will work for a lot less. Domestic products can then be produced more cheaply. Just like the old saying, "All great empires collapse from within".

 

What happens is the economy moves on to other, more profitable sectors. Corporations are very good at putting their capital to use in the places where it will generate the best return. In North America, that's less and less becoming the manufacturing sector. But you know what, there's nothing wrong with that. There's more money to be made in other areas.

Every time the economy makes a shift like this, people forecast doom and gloom saying it's the end of the world. Like when we morphed from a farming economy to an industrial economy. Or when mass production increased manufacturing efficiency. Or when computers began revolutionizing business methods. Every time, people fretted that we'd have millions of unemployed workers and an economy in permanent recession. And every time our economy has emerged stronger while leaving the lower-margin 'old economy' to other countries. It's called "comparative advantage", and it works to our favour.

 

Just curious, what "other areas" will be left, as it seems there is no bound to the sell out of America.
Industry, pharma's, farms, movie industry, sports, medical, millitary supply, tech, logistics, Blue-collar, white collar..etc.etc..It's gradually be steadily creeping up the food chain.
Also, without a strong industrial base, we will be a huge disadvantage if a Major or World War breaks out. Where will we get Our :Tanks, Trucks, weaponry, BDU-clothing...etc..??
The direction we are going now is not sustainable...
Foreign trade MUST be equalized, the deficit must be brought under control.

How, now?

You must realize, this is not something getting phased out by technology. If it were we could adapt. The jobs are just being Exported., to poverty wage systems,..nothing to adapt towards...and we cannot compete...

 

What indeed is left? As we speak US products are getting too expensive to buy. People buy foreign instead. But foreign only stays cheap as long as the US dollar stays strong. Once it drops by half its value then buying foreign becomes too expensive and domestic products get cheaper to export, then they get less expensive to buy domestically. The BIG problem for the US is that it needs a strong dollar to buy foreign oil. But I believe that will be overcome in the long run with substitute fuels.

 

By The Associated Press
Tue Oct 18, 6:24 PM ET



Ford Motor Co. and DaimlerChrysler AG's Chrysler Group said Tuesday they will ask the United Auto Workers to agree to health care cuts after the UAW and General Motors Corp. reached an agreement to cut GM's costs by $3 billion a year. This is what various automakers paid per vehicle manufactured for their workers' health care in different regions in 2004.

Automaker Health care costs per vehicle
General Motors Corp. (North America) $1,500
Ford Motor Co. (North America) $1,309
DaimlerChrysler AG's Chrysler Group (North America) $1,044
BMW AG (Germany) $449
DaimlerChrysler AG's Mercedes Car Group (Germany) $419
Volkswagen AG (Germany) $418
Toyota Motor Corp. (North America) $201
Honda Motor Co. (Japan) $151
Toyota Motor Corp. (Japan) $97
Source: A.T. Kearney Inc.

http://news.yahoo.com/s/ap/20051018/...th_care_glance

 

Uhmmm..........not in my opinion.

First, do some research and find out what Honda and Toyota pay in terms of taxes......such as school, county, and state.

Further, they are not burdened with legacy costs. Nor do they have union work rules and heirarchy or pay scale.

Look at the total investment in the U.S. versus GM and Ford and Chrysler.

And finally, you may claim they are..but they still import passenger cars from overseas.....which, by the way, do not get tariffs imposed on them as they enter this country. Go look at what the Japanese impose tariff-wise on U. S. Built cars in that country......or, for that matter, europe.

Yup.......very easy to say 'they're an American Company" without realizing what the reality really is.

 

Not in my opinion either. The companies must have roots in the US to be a true domestic... the healthy Toyota/Honda profits generated in the US go to building a stronger Japan.

Besides, the cars that Japanese makers produce are largely designed in Japan... there is very little that is designed/built exclusively in the US that is exported to Japan and other parts of the world.

 

Is this the beginning of the end for the nation-state? Tune in next week. Same Bat time, same Bat channel.

 

For every GM car produced 5 people are employed.

For every Toyota produced 3 people are employed.

That's the difference.

 

And Import Brand, non-union shops use "Temp Hires" with NO benefits and at roughly 1/2 the wage of a "Full Time" employee.