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regaphysics t1_itrviba wrote

Reply to comment by BoostinDubs in My 2014 Redwings after a fresh resole. by thechoochlyman

You have assumed away the question. Manufacturing over seas can save labor costs, which can allow more money to go into the product; they can also produce higher profits but you have no idea which is the case (often it’s both). One thing is certain: Products made in higher labor cost countries absolutely cannot put as much money into the product.

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BoostinDubs t1_itumkpw wrote

I think you are bit confused on how capitalism works. Every quarter a corporation must make more profits than the last quarter. Eventually a company will come to a point where they plateau and don’t make as much profit as the quarter before. They must make a decision at this point. Either improve the product or get cheaper labor to improve profits. Unfortunately when they decide to have manufacturing done in China they are choosing cheap forced labor instead of product development to increase the profit margins.

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regaphysics t1_itva2y3 wrote

lol, I understand how it works. There’s nothing inferior about production in China. When forced with either reducing costs on the product itself in order to remain in a high cost place like the US, or outsourcing to a lower labor cost environment - the latter is better for a consumer.

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