July 10, 2010
In January 2010 I wrote that we may have to decide whether we want cheap goods or we'd rather be healthy, in view of China's relaxed attitude toward life-threatening additives in their products. (See "The Economy")
Looks like China may be taking the decision out of our hands. Their workers are demanding more money (almost a living wage, darn them!). So some companies may be moving operations back to the U.S.
I tried to work it out to its logical conclusion, but got flustered.
If the Chinese workers demand more money and the companies move back here, the people in China will be out of work. But soon the goods will cost more because the workers here will want raises every now and then.
The products will be safer, but consumers will gripe about the cost.
With a lot of people out of work, the wages may fall again overseas, making the product cheaper (but not safer)...