'Cept however , it's not always that a US retailler won't sell cheaper , it's often that he can't and still stay in business.
I'm not sure about China , thier cost of living per family house hold , thier percentages of taxation , insurance and other health care costs , etc but it's pretty steep in alot of places here.![]()
Exactly. That's the whole point. In a competitive, capitalist society only the strongest and smartest survive in business and only the smartest and most skilled employees are never out of work.
The cost of living also varies in China as well. Apartments in Shanghai are not much less than those in New York.
There is not now and never will such a thing as fixed prices in an open market. Prices fluctuate based on demand and supply UNLESS they are artificially interfered with.
When demand is high then there is a lot of incentive for more suppliers to jump in and make the thing in high demand, this drives prices down as more supply comes on the market, when prices go down it's less profitable for supplier to make the good and some of them stop doing so and this cycle continues until demand and supply reach a steady balance with just enough suppliers to profitably fill demand.
If Joe's hamburgers is the only hamburger stand in town and he charges $2 a burger and McDonalds moves in and charges $1 a burger and offers more choice then Joe can do one of two things, advertise and invite people to come and taste why Joe's Burgers are ten times better for only twice the price OR he can figure out how to lower his price and offer more. If Joe does nothing and figures he can coast on reputation then McDonalds is going to get his business and he will go under.
The United States is FULL of business who were threatened by lower priced competition and survived by changing what they do. And there are a lot of business that tried and still couldn't beat the competition and they went under. It's life.
Look at at like pool. If I am the top player in my town and another player shows up who is better then he is going to start taking away a good percentage of my tournament winnings. So I have to up my game to compete and preserve my income. Of course since he is a tough competitor I am still probably not going to be winning as much as I did before but I will still be there and still be making money. And IF I up my game to match his then I can go other places and win where I couldn't before so my money making opportunities are expanded as my range is expanded. If I don't do anything then I will simply be replaced as the top player and my income will drop possibly to the point where it's not worth it for me to attend tournaments anymore. I go out of business.
If this were all just about price then it would be easy to understand. It's not - it's about life and that isn't easy to understand. In life every person has different motivations, different aspirations, different skills and talents, and different environments which dictate how they see the world and what they need to do to survive. All of this plays into what we earn, how we earn it and how we spend it. There is no simple answer and telling people to "buy American" certainly isn't it. Because if the whole world followed that concept of "buy local" then we would be much worse off and you would see more war between countries who want the resources that another country has.
Most people don't know that we BOUGHT France's aid in the revolutionary war through promises of trade. That's right, we promised France certain trading rights if they would help the new republic throw off the British rule. Free trade is truly a cornerstone of our American way of life and the admonition to all Americans should be not "Buy American" but instead, "Buy Wisely".