Good idea continuing this here.
I misread. If you were talking about cheap labor in general, how exactly is that exploiting? More to the point, who are we to decide if their labor standards are unfit? And if they are unfit, who is to blame? Do you see my point here? Even if we replace the "child labor" with "cheap labor", my previous point would still be valid. Supply and demand works in favor of demand. If there is a surplus of demand, people will find a way to fill(Supply) it. If there is a surplus of supply, demand falls(Unless they are commodities). It is the US that is the main source of these products. We are the demand.
I don't believe the GDP and annual growth is fiction and I don't expect anyone with the ability to critically think to believe that. I've been following Nielsen for a while now and I am constantly reminded of Asia's growth.
http://blog.nielsen.com/nielsenwire/consumer/chinas-next-frontier-its-rising-cities/
They do market research with measurable data to back it up. I have no affiliation with them.
As far as their banks controlling inflation, how is that different from the Federal Reserve's tactics of printing money[digitally]? Our system isn't even audited(yet). Congressman Ron Paul is pushing for an audit as we speak. If Foxconn is a Taiwanese company, isn't that still Asian? A contractor often times outsource work. This is nothing new. They're still working for Apple. And when you say cheap labor, you're saying it like it's a bad thing. Very strange coming from a pro-business article. And this relates with my point on the prison industrial complex here in the US. Even if we conclude it to be a bad thing, we are doing the same. Why hire workers for $10 an hour when we can outsource the work to prisoners for 65 cents an hour?
Okay, I'll give you that. Sure, they have plants in the US and Mexico. Does that justify them kicking our butts in our own country? When nationalistic American say "Support America, buy American." Will, you raise your hand and make a point to support Toyota for having plants in America?
I'll humor you again. If the Japanese auto makers are getting "bailouts" for decades, who is to blame? The car makers for getting the bailouts or our governments for giving them? BTW, I don't consider loans "bailouts" no matter how low the interest rates are. A loan is a loan.
So the difference between a business and a job is measured in time? If so how much?
I don't want to turn this into a east vs West or China vs the world thing. I know Japan, Taiwan, Korea, etc are all part of the eastern culture. I just don't buy into the hate. Recently, China has limit the amount of precious materials, like Lithium, for export and they've been getting bad press for it. I say, how is that different from what we did to Cuba? This is not a debate on Eastern business culture = bad, Wester = good. I am taking no sides. I am here to say, "The pot calling the kettle."
Btw, just to clarify a few things. Morally, I do not support the child labor in China or anywhere but I do understand it. Also, innovation goes well with efficiency. Whether or not we agree with it, China and other parts of the world have made electronic good cheaper for us, the consumers. They are an industrialization country right now. We can't expect them to innovate as well as Japan or the US.
This will be my last comment. Thanks for the fun!
I'll post an expanded version on my blog, but here's my essential rebuttals
ReplyDelete1) China's GDP is faked, because various local departments are in the business of MAKING UP growth
http://pragcap.com/are-chinas-gdp-figures-fraudulent
http://www.telegraph.co.uk/finance/breakingviewscom/5835072/Chinese-GDP-a-case-of-fake-it-til-you-make-it.html
Basically, GDP is reported for political reasons, and that's when it becomes fiction. Remember, the party controls EVERYTHING.
It's not complete fiction, but it's definitely MORE than actual numbers. HOW much inflated is the big question.
In China, the banks control the exchange rates, instead of free-floating like virtually any other currency in the world. Even movement of just a dime is big news.
http://www.huffingtonpost.com/eric-lotke/what-chinese-currency-man_b_355679.html
Entrepreneur is about founding new business by adding value, either by finding new products, more efficient products, or new ways to market products. It's more about "doing more with less". While cheap labor definitely helps cut costs, it doesn't quite fit into the entrepreneurship. It's nothing "new".
American auto have been making comebacks. Ford Fusion was car of the year for 2010. Build quality has steadily improved in past decade.
If China and eastern cultures don't start innovating, it will forever remain a source of cheap labor and cheap manufacturing base. THAT is the danger of keeping the old mindset.
kschang, apparently my points didn't go across. I'll give it another try.
ReplyDelete1. Let's assume China's GDP is 100% false. Pure fiction. What exactly does that prove? That they're broke, lying, maybe both? No one believes they are broke. As for lying, morals and business don't go hand in hand.
2. the Federal Reserve is no different. They control the money in the economy. Please research. There is too much information out there for me to list.
3. The US national debt is above all countries. Look at the heat maps below.
http://en.wikipedia.org/wiki/List_of_sovereign_states_by_public_debt
http://en.wikipedia.org/wiki/United_States_public_debt
In fact, who's the leader in Foreign owners of US Treasury Securities? The People's Republic of China with over 800 billion dollars.
4. Thank you for clarifying your definition of "Entrepreneurship".
5. I give it to Ford for stepping it up but I still criticize GM for failing on our expense. Making a comeback is still considered second place. Motor Trend gave the Fusion Car of The Year but they(we) are still behind the Japanese in our own country. Build quality is subjective, profits margins are not. The bottom line is Foreign auto makers are still kicking our butts.
6. Toyota's Prius put hybrids on the map. It's so common now, when we think of the term "hybrid" the Prius comes to mind. Is that enough innovation? What exactly do you consider innovation? Something "new"? The reason I ask is I don't want you to move the goal post any further. A logical fallacy.
7. When you mentioned that China exploited cheap labor, I mentioned the US exploiting inmate labor.
8. When you mentioned China's banks skewing exchange rates, I mentioned the Federal Reserve skewing the USD.
9. China and eastern cultures ARE innovating. That's why US companies are outsourcing our cheapest commodities(clothing) to South America.
10. I'm sorry but you are putting down the east and putting the US on some kind of pedestal. Sony(Japanese), HTC(Taiwanese), Samsung(Korean), Kyocera(Japanese), LG Group(Korean), Lenovo(Chinese), Toshiba(Japanese), Acer(Taiwanese), Asus(Taiwanese), Panasonic(Japanese). Cultural differences didn't stop these companies. I haven't even listed Asian car manufacturers. The east doesn't innovate? THAT is the danger of not having an open mind.