An MMT site bringing you dogma-free economics without the pleadings of self interest
You know, there is this widespread belief that less-developed countries are stealing our manufacturing jobs. Actually, most of these jobs are lost to automation, and this is even occurring in China. US manufacturing output has increased steadily over the past 40years, reflecting increased efficiency. Yet, the idiots like Schiff and Jim Rogers feed the common consensus.
When Nike makes a pair of sneakers that sells for $75.00, the sneaker is worth $3.50 at the Chinese port. As soon at the sneaker is in the Nike warehouse in the US, the sneaker is valued at the wholesale price of $50.00. The "added value" comes from the marketing and distribution investments made by Nike. Funny that.
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