You guys think that walmart is big right now, just wait until they launch their next project. Just west of Fayetteville, AR (close to walmart's base) there is a little town called Lincoln. Walmart is testing their "dollar general" size stores. It will be just like a large walmart but scaled down. Meat dept, grocery, etc and in every small town across the country.
To blame Walmart is IMO to play ostrich... that is, to voluntarily put one's head (read that mind) in the sand.
IMO there is a LOT more going on with China being the 'world's factory' than simply who makes the goods and who has the jobs.
There is this thing called the business cycle... it goes up and down. It has done this since before recorded history; folks who study history can plot it out... a tuff google search, but it CAN be done. Many poplecats have tried to change the business cycle, ALL HAVE FAILED!
When the USA was coming towards a downward point in THEIR cycle, TPTB realized the need to keep the US economy stimulated... this was the plan: Arrange trade laws so China could manufacture things cheap and send them to the US, and then persuade China to buy US treasuries with all the US$$$'s they accumulated from selling us all those goods... One could say: No way, the USA could not arrange that... OK, how about this:
Remember in the late 1970's and the early 1980's; in essence we did the SAME THING WITH JAPAN! Then when price inflation set in... all those assets we sold Japan became worthless. In effect, the USA exported their 'down cycle'. Now understand this: Japan has STILL NOT RECOVERED from the hit they took in the later 1980's.
I predict the same thing will happen to China. You see, the USA is not as dumb as they look... one just needs to look at a larger picture.
As soon as the election is over... there will be price inflation. Then there will be a movement of 'buy American'. Then manufacturing will come home (why did it ever leave). And everyone will be happy.
Now lets think back a decade; everyone seemed to be happy back in the early-mid 2000's because they got really CHEAP stuff from overseas... Anyone care to tell my why Chinese stuff was good a decade ago, and now it is not?
My point is... there are cycles that are bigger than what we see today. IMO a wise person will look at the cycles rather than the short term issues.
When it is convenient for TPTB, jobs will come home.
Question: Would we be better off with a govt moving jobs to China, so they can bring them home... or: Would we be better off without the govt screwing things up, and each person learns to fend for themselves.
One is a whiner looking for a free ride (can you say liberal); the other is a capitalist who is willing to take care of themselves (can you say conservative). The liberal is looking for a 'deal' so they can sloutch off at someone else's expense... while the conservative just wants to be left alone so he/she can make a living and take care of their family.
Now tell me: Which is the American dream? Living off the govt teet? Or being left alone to take care of our families on our own?
Any of you liberals got the guts to answer the question? :cheers:
Walmart is building food only stores in the metro Atlanta area now... some are already open.
I can tell you this for sure: There will come a day Walmart will stumble. Anyone who thinks this is not true, I have a Washington (1$ bill) I will wager with you it WILL happen. Folks griped about Sears... they are almost gone. Folks griped about Safeway foods, they are a shadow of what they used to be. Do any of you remember the 5 and dime stores, or Grants, or JC Pennies (seriously going down now in my area). Retail changes... Folks that will do some googling... will learn something if they want to. :putergreet:
All you have done is to provide us with your perspective, not necessarily reality.
IN the eight decades before the recent recession, there was never a period when as much as 9 percent of American gross domestic product went to companies in the form of after-tax profits. Now the figure is over 10 percent.
During the same period, there never was a quarter when wage and salary income amounted to less than 45 percent of the economy. Now the figure is below 44 percent.
For companies, these are boom times. For workers, the opposite is true.
The report showed that effective tax rates, both corporate and personal, are well below where they were during most of the post-World War II era.
Corporate profits after taxes were estimated to be $1.56 trillion, at an annual rate, during the quarter, or 10.3 percent of the size of the economy, up from 10.1 percent in the second quarter. Until 2010, the government had never reported even a single quarter in which the corporate share was as high as 9 percent, as can be seen in the accompanying charts.
Wage and salary income was only 43.7 percent of G.D.P., the lowest number for any period going back to 1929. That figure first fell below 45 percent in 2009.
The figures for wage and salary income arguably understate the cost of hiring, since they exclude both the employer’s share of payroll taxes and the cost of other benefits, like health insurance. Including those costs, total compensation of employees came to 54.3 percent of G.D.P. That figure is not a record low, but it is the smallest share for any period since 1955.
Now to compare.
The percentage of wages in China as a portion of GDP is 8%. This number is so low that it really cannot be understood. The number in the U.S. is 58%. The number in Mexico is 33%. The number in the Philippines is 27%. In most of Africa, the number is 20%.
China has the lowest average wage in the industrial world at $.80 per hour, with the highest number of hours worked at 2,200 per year. Compare this to Brazil, for example, where the average hourly wage is $2.25 and the average hours worked per year is 1,841.
Clearly, the pressure is enormous in China for an upward push in wages in every segment of the economy. This means that for foreign businesses outsourcing product in China, making product in China and operating service businesses in China the party is over. All companies operating in China will see sharp increases in wages over the next five years. This trend simply cannot be avoided. This sharp increase in Chinese wages will then have a knock on effect, pulling up wages in places like Vietnam and Cambodia that look to China for a lead in manufacturing wages and costs. This is the future. Get ready for it.
The only way you can compete against these wages is to have the cost of living to come down. The cost of housing, food, transportation. The people in China or the other Asian countries work for less but their costs of living is less. Say we pay the workers here 1/5 of what they are making now. Will the apartment block owner agree to taking 1/4 of the rent that they are now? Will the bank agree to take the same cut on the money they lent you on your house? Could you afford to drive to work competing with Asians that ride their bike to work? And even if we get the labor costs down to the point where you can compete with the Chinese what is the incentive to move the factories back? A heck of a lot of disruption to the supply chain for no gain.Quote:
China Now Has Third Highest Labor Costs in Emerging Asia
An average worker in China costs more than the average worker in any other emerging Asian economy, save Malaysia and Thailand, when considered in terms of combined salary and welfare payments, China Briefing has found.
Conducting a review of minimum labor costs, determined by the legal minimum amount stipulated in 15 different countries, and added together with the pertinent mandatory welfare payments due, it is apparent that since the introduction of the revised labor law in 2008, China’s workers are now amongst some of the best paid in Asia.
FWIW I'm pretty damned liberal, but the wife and I hit Wal Mart once a week for groceries. Don't buy much else there, maybe a few pairs of Dickies carpenter jeans, and oil and filters for my truck. Can't find Hanes white boxers there anymore, going to have to go elsewhere for my undies.