Posted by: GAK67
] - (124.157.91.---)
Date: January 06, 2009 12:40AM
It always makes me laugh when I see Americans, the greatest advocates of the free market system, complaining about the free market system doing exactly what it should do, and even what it could be predicted to do. It's just simple supply and demand. There is an over supply of labour in most of the countries pj just mentioned in his post, hence the cost is cheap so where else would a company wanting to maximise it's profits choose to manufacture? Those countries that do not have an oversupply of labour make a better quality product - if you offered me a German car vs an American car, assuming same price and specifications, I'd always choose the German one. Same with Japanese electronics - although American electronics are good, but expensive.
The system is doing what you should be expecting it to do people!
But there is no need to worry - as jobs become more plentiful in those countries prices will rise due to the increased income available, which will push up wages, so then those countries will complain when manufacturing moves to the next area with the same oversupply.