[opendtv] Re: TV Prices Fall, Squeezing Most Makers and Sellers

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Wed, 28 Dec 2011 18:53:27 -0600

Mike Tsinberg wrote:

> Every other country except US has tariffs to protect their
> manufacturers including China. I recently came from a trip there.
> For example a US made car that cost about $30K in the US sell for
> about $90K in China all due to tariffs. With tariffs in place US
> can rebound its electronics manufacturing and compete on features
> instead of price only. Average salary for electronics factory
> worker in China is about $2,500 a year. Using massive
> manufacturing facilities partly financed by government or money
> from Taiwan these manufacturers can survive and prosper on
> extremely low profit margins.

In a very real sense, our much higher standard of living is paid for by Chinese 
workers (and others, like Singapore, Korea, etc.). That's the way it works. If 
we imposed huge tariffs, our standard of living would go down right away, 
because the average person could no longer afford the products they have become 
accustomed to.

But this will all equalize eventually, perhaps sooner than some might think. I 
read that Chinese engineer salaries are going up fast. Just like happened with 
Japan, China will no longer be the source of comparatively super cheap labor.

The effect will be, their standard of living goes up and ours levels off or 
even goes down.

Bert

 
 
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