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View Diary: Buying an American-made guitar (286 comments)

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  •  That isn't.... (1+ / 0-)
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    SherwoodB

    ...just about guitars. It is about all sorts of different products that used to be made here.  As I have stated several times in this thread, American companies are cutting their own throats by moving production overseas. You cannot buy their products if you don't have a job.

    "Republicans only care about the rich" - My late Father (-8.25, -7.85)

    by Mark E Andersen on Mon Jul 08, 2013 at 04:50:54 AM PDT

    [ Parent ]

    •  Say *huh*? (0+ / 0-)

      Mark, companies are doing just fine with offshoring production, call centers, banking - anything that helps the bottom line.  Public companies are required to make a profit; if they don't, their boards will replace CEOs or stockholders will replace board members until they do.  As long as the economics of offshoring works for the companies, the companies will do it.

      Now, much is being said about how to reverse that and it's not hard to figure that out.  You can either raise protectionist walls with mechanisms like tariffs or you can tip the economic balance itself - and there are three ways that can happen, individually or in combination: 1) raise the offshore labor cost (and you can expect that as workers rise up against sweatshop conditions and organize to demand safety, benefits, and living wages) 2) drop the onshore labor cost by eliminating or reducing benefits (Wal-Mart), reducing wages (the Herman Cain method), or cutting safety corners (Deepwater Horizon, West Fertilizer Company, Murray Energy) 3) make distance expensive through higher fuel and insurance costs.  So basically we await an equilibrium between third-world and first-world labor costs with the gap bridged by higher transportation costs...which industry is putting further off into the future with the so-called "Post-Panamax" cargo ships.  

      One of the speculative books I've read talked about a future where distance is so expensive that most all goods get sourced regionally, which will have the interesting effect of having consumer preferences become heterogenous, i.e., guitars made in North Carolina will serve the tastes of players in the Carolinas, Georgia, Virginia, and Tennessee while guitars made in Washington state will be more like what they want there and in Oregon, Idaho, British Columbia, and Alberta.

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