Comment on Fear of cheap Chinese EVs spurs automaker dash for affordable cars
hark@lemmy.world 6 months agoChina wasn’t “outcompeting us on undesirable, low productivity, jobs”. Corporations were shipping jobs to China to undercut highly productive factory jobs back then, too, so they could save on labor costs. It’s only now that China is undercutting corporate profits that these same corporations come crying and shitting their pants. That’s also why you see a ramping up of negative media pieces on China. It was never about charitably raising people out of poverty. It was always about corporations undercutting labor to gain greater profits. Fuck 'em, bring on the cheap cars.
Dude, I’m old enough to have lived through it.
Making toys and other plastic shit was never a high paying job in the West.
And no, it wasn’t charity, it was a win-win that increased living standards on both sides.
But it did have an impact on low paying manufacturing jobs in the West and that impact was accepted by Labour unions for the two reasons I gave: we (rightfully) concluded there were enough other, better jobs available and didn’t want to keep Chinese workers poor.
Yeah I’m confused by the charity argument. When have American corporations ever done anything out of the kindness of their hearts?
The “good for people” argument (which has been misportrayed here as “charity”) was made by politicians to justify tearing down the trade barriers that allowed localized higher-income bubbles within the wealthiest countries such as the US.
Once those trade barriers were down, all those jobs which had no other price protections than said trade barriers (jobs like, for example, assembly workers, but not things like Legal professions specialized in a country’s Law and which require registering with a local Law Society to practice) were suddenly competing with similar people all over the World, and a lot of countries in the World are full of people who would sell their work in those areas much cheaper than equivalent workers in high-income nations.
The people it was good for were the ones with such occupations in low income but reaasonably safe countries like China (whose income went up as manufacturing moved there) and the people who owned the means of production (who got higher dividends due to the higher profits being made by paying low-income country manpower costs and receiving high-income country prices for products and services) but nobody else as even the eventual fall in prices that occurred (slowly, as all those companies with China costs started competing on price) was not enough to make up for the faster and deeper downwards pressure on high-income country salaries due to said manpower competition with workers in countries with much cheaper salaries (hence, for example, in the mid-70s about 23% of corporate revenue in American went to salaries, whilst by 2012 it was down to 7%).
Heres the problem with the talking point of needing to bring manufacturing jobs back: we can’t fill the manufacturing jobs that we have
I work for a company that sells services to warehouses and industrial facilities. We can’t fully staff our locations, we can’t keep most of the people we hire and neither can our customers, and it comes down to the fact that the jobs absolutely suck. Who wants to work in a loud, poorly temperature controlled factory with heavy equipment and a high risk of injury while doing backbreaking work when you could work at a store or resteraunt for not much less and put far less risk to your life, limb and sanity? Bring the automation on, these jobs need to become a thing of the past.
Read what I said. Labour Unions, not corporations.
Manufacturing and union membership took such massive hits in the US over that period of time. It was win-win for the corporations who greatly expanded profit margins, and the Chinese government, who were happy to use their citizens as sweatshop labor to get ahead. You lived through the propaganda at the time and decided to accept it as the truth.
Holyhandgrenade@lemmy.world 6 months ago
I hate it when corpos use the “oh we can’t lower prices because our staff is getting paid too much”-narrative. What about the CEO who takes half the profits for himself?
alvvayson@lemmy.world 6 months ago
The sad fact of the matter is… math
A corporation might have 10 C-level guys dividing $50 million amongst themselves and 10.000 workers earning $70K, which costs about $100K due to overheads (health insurance, retirement, etc). Together, that’s a billion, which is 20x more than the C level guys.
The C level guys aren’t the big expense, not by a long shot.
Labour, government and shareholders divide most of the earnings amongst themselves.
For the record, I do think we need to tax the wealthy more and the workers less.
Viking_Hippie@lemmy.world 6 months ago
Without the workers there’s no product, no income. The C-suite is dispensable. The workers aren’t.
Besides, worker productivity has been skyrocketing for the last 50 years, as has cost of living, but worker wages have been stagnant. C-suite pay has kept up with the increase in productivity, though, if not outpaced it.
alvvayson@lemmy.world 6 months ago
I have no disagreement on this argument.
But C-suite compensation is not a significant part of prices.
Energy prices, tax, labour costs and the cost of capital (i.e. returns to shareholders and creditors) are what drives prices.