I’ve spent some time in Thailand, a so-called “third world” nation. And from experience I can tell you that that label is a misnomer. Yes, people in Thailand make less than their western counterparts in the same jobs. But why is that?
It’s very simple really. The cost of living is lower. How much did you pay for an ice cream cone the last time you had one? Does your local KFC have a soft-serve counter? Well, KFC’s in Thailand do and they sell ice cream cones for 10 Baht. At the current exchange rate, that’s about a 25 cents! How much do you pay for a typical 16oz bottle of water? Again, about 10 Baht in Thailand! You can live well there on 5 to 10 dollars a day and considerably less if you don’t eat all your meals in restaurants. A night in a 5 star hotel (outside tourist zones) with a BIG complimentary breakfast buffet and omlette bar can be had for about 30 dollars!
Why then, can the friendliest people you’ll ever meet get by on a fraction of an American worker’s salary?
I think the answer is that they don’t expect as much as we tend to. They understand the meaning of the word community and work together regardless of the cash involved. We throw money in huge piles at people who don’t deserve it and pay the ones who do deserve it very little. What’s the average salary for a professional ball player? The specific sport is irrelevant, no athlete is worth $10,000 a game! How much do we waste following so-called celebrities? Can somebody please tell me what Paris Hilton ever did to deserve all the attention and cash we throw her way?
I had major surgery performed in Thailand by the best doctor in the world for a tenth of what American and Canadian surgeons wanted. And here’s the kicker. His price included airport pick-up and return, eight days in the hospital, all operating room costs, all unexpected medical costs, all pre
There is no one specific reason for China’s dominance in manufacturing be it model railroading equipment or anything else. We have our own government to blame for allowing American companies to outsource part if not all of their manufacturing process, The completely unrealistic restraints that they put on small business as well as larger ones. The unions who at one time served a great purpose in protecting the American worker but are now no longer needed except to drive the cost of manufacturing goods up just so a select minority may benefit, and lastly the American consumer be it a model railroader or the buyer of pretty much anything else. We are more concerned with the bottom line whats it gonna cost me then with where it’s made, who made it and how well is it made. Lets be honest with ourselves, when we walk into our LHS and pick up anything off the shelf lets say a piece of rolling stock. How many of us actually look to see where it’s been made but we first look at the price. Will we be so willing to support that American worker if his or her product is selling for $69.00 as opposed to the one that looks and seems to be just as good and in some cases it is that was made in China selling for $39.00. We as consumers have the right to say no and not purchase any goods we so choose. This will without question limit our choices no question. But we all have to start some place right. We don’t have the ability to bust unions or over turn stupid tax burdens and government restrictions on manufacturing that drive cost up over night. We have no control over our economy and the cost of living. But we do have the power to put down that Chinese made what ever and buy American. The choice is ours. If we are not willing to do what we can by not patronizing companies who manufacture in China then we have no right to bitch.
It is within human nature that we always go for more, yet want to give less.
Consumers want to buy more, but pay less, workers want more pay for less hours of work and shareholders want more dividends for less risk. Call it greed if you like.
The question, where products are made, is influenced by a complex bundle of factors. It would be dang easy, if it were only labor cost, transportation cost and quality issues.
Try to set up a production facility somewhere in the US (or Germany, as I am a German) and you will understand what I mean. Our society has set up a bundle of rules for that, which sometimes escape our understanding. We need to consider environment protection issues, work safety rules, zoning laws - you name it. All of these factors heavily contribute to the cost of production. But it is because we want it that way and we have elected our governments to set the standards for it. We want to breathe clean air, eat healthy food and drink clean and unpolluted water. There is no such thing as a free lunch, and that´s why there is a price tag to the way we want to live. Just look back, how bad the situation was about a hundred years ago.
Now take a look at China. They don´t care at all for the afore mentioned issues. If they were to enjoy a standard of living near to what we are used to, wages would certainly not meet our wages, but would be a lot higher than they are now. The $ 150 to $ 200 average monthly pay would go up to, say, $ 500 - $ 800 a month, as the cost of living is much lower there. Add the cost of environmental protection and the cost of quality assurance, and your landed price in the US is very close to the cost of production in the US, providing that the exchange rate of the Dollar to the Yuan reflects a market value.
Chinese manufacturing can only be comparatively cheaper because the worker´s compensation is on the level of slave labor, environmental issues are totally neglected and the exchange rate is kept at an artificial