America is made in China

To put it simply, "Why we do we continue to buy China's crap?" Because we HAVE TO.

Unfortunately, we now have (and have had for several decades now) not only a consumer culture, but a consumer ECONOMY. At this point our economy is completely built upon consumption of cheap products from China.

Those who fear the amount of our debt which China holds and who fear that should the Chinese switch to another currency that the dollar would tank...well. It's not going to happen.

Our economies now depend on each other. We depend on cheap goods from China, and likewise, China depends on us as a consumer of their exports. If China switches to another currency (and the USD tanks as a result), they not only lose money in the remaining debt/holdings in the USD, their economy is also basically ruined.

That being said, there are ways to cut down on the trade deficit and still keep things rolling (or at least to slowly transition). You see, right now the Yuan (Chinese currency) is being held artificially low by the Chinese (through the use of a dual-exhcange rate). What we COULD do, is institute a dual-exchange rate ourselves (this could potentially cut the trade deficit nearly in half - though that would be a high estimate). What this would do would be to make the Chinese products we import slightly more expensive to the US consumer, but make Chinese imports of US resources/goods/services slightly cheaper for Chinese businesses/consumers.

There has been talk of this bandied about by economists for over a decade now but as of yet political leaders and policy makers have not been onboard (for obvious reasons ie lobbying and certain cozy relationships).

I hate buying anything from China... Worthless garbage everytime!!!

Even the American made Harley Davidson has Chinese/Japanese Parts...

Just cant get away from that Asian Bullshit.

Originally Posted by hempstead

This is a rant. Why do we continue to buy China's crap? I will tell you why because we have to. I have been so fed up with made in china crap that I tried to avoid it. It is almost impossible! Unless you plan on making products yourself then good luck. Everything is made in China lately and everything sucks.
I thought it was just Walmart. NOPE! It is every store. I want to buy American but it is almost impossible

I know it will never happen but do you think if trade laws were changed we could eliminate our deficit? I know stuff would be more expensive but if we manufacture here then we would have more jobs too. And if we had more jobs wouldn't that create a higher demand for workers. And then a higher demand for workers equals better pay. Maybe we should go back to trading mainly raw materials and building stuff ourselves.

How is it in Canada and the UK? Do you guys have the same problem? Are yahs sick of it too?

And check out this site. I found it by googling made in china sucks. heh
http://chinaview.wordpress.com/10-th...w-about-china/
That is some fucked up shit right there.

OK sorry for interrupting, carry on. heh

Welcome to the world of globalization.

Right now China has a massive glut of cheap labor (peasants being drawn to cities for work) and keep their currency artificially low to make their exports about 40-60% cheaper than our goods. We do something like that when our government subsidizes corn production making it cheaper for American farmers to export. When it is then imported to places like Mexico it is actually cheaper to buy the subsidized US corn than it is to purchase locally grown stuff.

The current system is one where China sells us cheap stuff and in return buys our debt (treasury bills). If we tried to put up trade barriers to bolster American manufacturing, China stops buying our debt and we are fucked.

None of this is going to happen right now because even during an economic downturn we are both basically getting what we want. China has explosive economic growth and the shelves at Wal-Mart stay full.

Things will change when China no longer needs the US. As they get bigger marketshares in places other than the US our influence will become less and less till China is running the show in Asia.

The future is really up to China at this point. They are a 1 party system and doing everything they can to keep their currency from spiraling into inflationland.

And then a higher demand for workers equals better pay

and as such prices go even further up and up, annoying average joe on his average joe income, who decides fuck this i'lkl make my own business and get it onto the shelves cheap.

if americans can't make the stuff cheap, and as such sell at a price tag the majority will pay, then it'll move to somewhere where this is a viable option.

Originally Posted by matthew

Things will change when China no longer needs the US. As they get bigger marketshares in places other than the US our influence will become less and less till China is running the show in Asia.

The future is really up to China at this point. They are a 1 party system and doing everything they can to keep their currency from spiraling into inflationland.

China will never not need the US (at least as far as the eye can see). They are destined to remain the #2 economy (at least until they slip back down the ladder).

China has its own problems. It is basically caught in a catch-22 with regard to its own regime, as well as its reliance on the US consumer market.

With regard to the US market, as I posted earlier. Both China and the US rely on each other. In order for the Chinese to grow their market they depend on consumers. The only market large enough (and "rich" enough) to support their export economy (and its growth) is the US. India can't and won't be able to do it (they have cheaper labor there than the US), Brazil can't and won't be able to do it (same as India), Europe is too small and does some manufacturing itself, etc.. The ONLY way for China to continue to grow is selling to the US market.

With regard to the regime/political catch-22...China *has* to keep expanding its middle class to avoid potential upheavals. As it does this... at the same time ...this also brings its own potential risk of political upheaval. As their middle class grows, the middle class will be more likely to expect (and demand) the politics (human rights, wages, etc etc) change.

Basically the 2nd catch-22 is preferred over complete outright domination or "not growing the middle class" because although it runs the risk of upheaval it is seen as a more manageable scenario.

Also, if we take a look at history, China was a center of global commerce before (18th century). Due to current economic realities/circumstances and political realities/circumstances, "#2" is where they will again remain (until they slip back down the ladder) once again.

That isn't necessarily to say that the US will always be #1, it may not be. Just that China never will be.

I am just sick of buying crap. It is cheaper now but not in the long run when you count in time labor and maintenance. Sometimes even when you spend the money on the nicer model you still get a piece of crap. Everything gets crappier and crappier. Is that a marketing strategy? If a product fails then they have to buy it again in 2 years then that keeps us in business. Is this how businesses think? Sorta like a theft proof car. Why would you build that when theft is making you more profit than maintenance alone? I am willing to pay a little more if I know I will have guarantees and a warranty. In the end it is all very wasteful. I am just a mad consumer. lol