- Sep 15, 2007
- Reaction score
That's a theme developing in Australia too, mainly from people with no manufacturing experience.The re-location of manufacturing out of China makes a lot of economic, political and strategic sense. It will happen in every country, not just Japan.
Here's the full original article, not the Breitbart sanitised and shortened version ....
The country’s record stimulus package to try to offset the effects of the pandemic includes US$2 billion for companies shifting production back to Japan.www.scmp.com
The theme misses the critical factor that the consumer will always make that choice.
Where is your T shirt made, jocks, trousers, socks, shoes pens, calculator, computer, desk, chair, furniture, plaster roof tiles, in fact anythong that can be fitted into a container.
Laurence Hartnett got GM to set up car production in Australia, so we would never be short of cars again after Britain cut off supply at the beginning of WW2.
This theme is a repeat of that, but would your really pay for the amortisation and high unit cost for Australian products?
We currently buy bacon with 2% Australian content, the packaging, would we pay five times that cost for Australian bacon?
Would you pay $40.00 for $10.00 shoes?
Would you pay $350.00 for a $50.00 electric drill?
.......and so on.
If this theme is to succeed it has to start with a gigantic mind-shift by the consumer.
Let's not forget that the average consumer who works is paying higher taxes to cover payouts for the millions who don't, higher taxes for an artificial fuel price (which is currently quietly being manipulated back up by an agreement to cut oil production), higher taxes and emission costs on cars, higher Council rates, a GST system that didn't replace all other taxes, but now adds 10% on most other excises and taxes, and so on.
It has been largely China's ability to offer low consumer prices along with partners working that's allowed us to have a reasonable standard of living in recent decades.