A fresh trade war is brewing as China flexes its muscles

People in the US have enjoyed a higher standard of living for decades now because of inexpensive Chinese made goods.

 

It is because we all want to save a buck, and buy the "least expensive" stuff we can. (You will note, evilmouse, I have retired the term "cheep shit". In honor of Powell retiring the term "transitory" when it comes to inflation.)

 

Go to Walmart or Sears (if there are left) and see how many more expensive American made alternatives still exist. Not many.

 

Because they were priced out of the market, because our labor costs are too high.

 

Right. Is there any way to go back without a lot of inflation and pain?

 

No.

 

Is there any viable foreign alternative to China that has as much of a high quality workforce?

 

Perhaps, but they cannot match the volume to feed our need.

 

National IQs

 

"National IQ" (NIQ) does not equate to the ability to produce inexpensive goods that consumers desire. USA, Russia and Australia have the same level of NIQ, but the USA has a much higher manufacturing ability to produce goods. The problem is the expense it takes to make them. How many appliances come out of Australia or Russia? Like, none. Pound for pound, the USA can make appliances much cheaper than Aussie or Ruskies. But the USA cannot beat China on manufacturing appliances, because of labor costs.

Labor costs have nothing to do with NIQ.