Earlier quoted context omitted.
I'd say this is more satire than propaganda.
Political satire usually is propaganda.
Not always and I'm not sure if usually, but in this particular case it's both.
How much do you think it costs to make a pair of Nike shoes in Asia?
31–40 of 1001 posts
Re: How much do you think it costs to make a pair of Nike shoes in Asia?
#32It’s like people excited about the new datacenter being built in their town, think of all the jobs that will bring they cry. Nobody realizes it takes 6 people to run a datacenter. Bringing “manufacturing back to the US” is a fool’s errand. The future of manufacturing is automation, not jobs.
I think you're missing that the bigger value is having the manufacturing on your home soil instead of depending on being in the good graces of China.
That goes against like 50 years of global trade policies but ok...
Re: How much do you think it costs to make a pair of Nike shoes in Asia?
#33All around the "developed world", the shop/retailer/supermarket/distribution part of the price of a product is around 50%. Whatever the product or its price. I'm wondering if part of our issue with crazy inflated prices despite low margin for industry and manufacturing actors is not because of this abused margin for retailers. That have also a huge power as it is difficult to negotiate when you depend on your product…
While retail gross margins are not atypically on the order of 100% (less for more expensive goods, much more for cheaper ones) actual net margins are typically single digits. It costs money to retail goods.
Re: How much do you think it costs to make a pair of Nike shoes in Asia?
#34It’s like people excited about the new datacenter being built in their town, think of all the jobs that will bring they cry. Nobody realizes it takes 6 people to run a datacenter. Bringing “manufacturing back to the US” is a fool’s errand. The future of manufacturing is automation, not jobs.
i don't understand the obsession with jobs anyway people don't want a job, they want money and purpose most jobs barely deliver either
Human society has been optimizing for the wrong thing since 20,000BC.
To that end, the future I want doesn't focus so much on money, but on needs. Letting a market dictate "needs" is clearly not working for the betterment of humanity a whole. While it helps with progress, I believe there is an upper limit when human behavior is brought into the equation.
Re: How much do you think it costs to make a pair of Nike shoes in Asia?
#35Earlier quoted context omitted.
The author’s point is that the lower cost of goods coming from Asia results in increased demand, which then generates more jobs in the post-manufacturing part of the chain.
That completely discounts the strategic value of self-sufficiency. I mean, why not outsource ALL manufacturing and agriculture if someone else can do it cheaper? Surely that wouldn't come back to bite us, right?
Are cheap sneakers a strategic asset now?
Re: How much do you think it costs to make a pair of Nike shoes in Asia?
#36All around the "developed world", the shop/retailer/supermarket/distribution part of the price of a product is around 50%. Whatever the product or its price. I'm wondering if part of our issue with crazy inflated prices despite low margin for industry and manufacturing actors is not because of this abused margin for retailers. That have also a huge power as it is difficult to negotiate when you depend on your product…
You’re essentially just claiming price gouging without saying as much because otherwise the economies of scale would not exist (which anyone with any knowledge of how the economy works knows does in fact exist). “Smaller number of larger players with greater buying leverage as well as lower marginal costs leads to higher prices for consumers” is just using a lot of words to say “evil corporations are price gouging”, which is not true.
Re: How much do you think it costs to make a pair of Nike shoes in Asia?
#37It’s like people excited about the new datacenter being built in their town, think of all the jobs that will bring they cry. Nobody realizes it takes 6 people to run a datacenter. Bringing “manufacturing back to the US” is a fool’s errand. The future of manufacturing is automation, not jobs.
Indeed, US manufacturing has a higher output now than before outsourcing took off. But it employs far fewer people per inflation adjusted dollar of output. Because the manufacturing that stayed was largely the manufacturing that was so cost-effective to automate that not even third world labor could compete.
Just to add to your point: what stayed was either cost-effective to automate or had so much value added that the labour component is quite low (like jet engines).
Re: How much do you think it costs to make a pair of Nike shoes in Asia?
#38>The second thing we see is that Asian manufacturing in Asia produces US jobs. You go to Footlocker to buy a pair of $100 shoes because you can afford them. This creates jobs for the Footlocker employees, Nike designers, marketing teams, and other US people throughout this chain. In all fairness, most of those jobs would still exist if manufacturing was brought onshore. The fact that they were manufactured in Asia ma…
The reason you’re buying Nike and not GLRMNTXH brand knockoffs
manufactured in the same factory and half the cost is because of stuff the US employees are doing.
Re: How much do you think it costs to make a pair of Nike shoes in Asia?
#39Earlier quoted context omitted.
Forcing China to become more independent of exports to the US also means China will care less about being in the good graces of the US. It cuts both ways.
Except for the whole military superpower thing. The US is actually in a somewhat unique situation compared to other countries.
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Re: How much do you think it costs to make a pair of Nike shoes in Asia?
#40>The second thing we see is that Asian manufacturing in Asia produces US jobs. You go to Footlocker to buy a pair of $100 shoes because you can afford them. This creates jobs for the Footlocker employees, Nike designers, marketing teams, and other US people throughout this chain. In all fairness, most of those jobs would still exist if manufacturing was brought onshore. The fact that they were manufactured in Asia ma…
If those shoes cost $200 because of higher labor costs, then a lot less people are buying them. They will buy worse imports at $180. The consumer loses.