Why America's Economy Fell off The Cliff

[EpyonXero]

The economic boom of the '80s and '90s was based on the cheap, plentiful labor from those countries listed in the original post.

Also, the Wal-Mart effect is a great book that anyone interested in this subject should read. Wal-Mart definitely puts pressure on companies to move overseas but they only do it so they can give the people what they want. The lowest prices possible.

[shmike]

Originally Posted by EpyonXero

Wal-Mart definitely puts pressure on companies to move overseas but they only do it so they can give the people what they want. The lowest prices possible.

Wal-Mart always looks out for the customer.

It has nothing to do with profit margins or share prices.

[EpyonXero]

Originally Posted by shmike

Wal-Mart always looks out for the customer.

It has nothing to do with profit margins or share prices.

I used to think Wal-Mart was evil but now I think theyre like the robot in one of those sci-fi movies. Hes programmed to keep humans safe and decides the best way to do that is to never let them leave the house.

[Ducati Diva]

Now it's time for me to come clean. I did not write this post. It is a homework assignment. It was printed in a small town paper as a reply to a article about the death of small towns due to mills closing. My teacher wanted responses from a cross section of America to see how people would respond to the statements. I was afraid if I said this in the beginning the responses would not be the same. Thanks for the honest answers and I hope I didn't offend anyone to bad. Please continue the discussion, it makes for a good debate.

Pauldun thanks for calling me cupcake I about feel out of my chair laughing

[jetskifast]

Every job sent out of country, one less American able to buy products.
Someday Americans will get clue, you need people with jobs to buy your products.

[Rider]

Originally Posted by jetskifast

Every job sent out of country, one less American able to buy products.
Someday Americans will get clue, you need people with jobs to buy your products.

We are going through a global equalization. Eventually it will even out and things will cost the same no matter what country they are made in. It will take a while and there will be some huge growing pains involved, but in the end labor rates all over the world will be the same or at least close to it.

What it means to the US is that our standard of living will go down while the standard of living in India, China and other emerging countries will improve.

I don't like it but that's a reality that we all need to get used to. When we finally equal out, the Wal Marts of the world will go away because there will be no need for them.

I'd love to maintain my standard of living but it can't happen because too man people are willing to buy overseas products keeping Wal Mart in business so that they are able to save a few dollars.

[smileyman]

Rider owns this thread! He has it pretty nailed. Corporate greed sank our boat. Lets talk in a motorcycle analogy. We gained a couple decades easy profit by selling out to overseas like a racer might make big gains on the brakes going into a corner. The competition gets a cleaner entrance, line, and gets back in the gas quicker leaving the late braker for a time. Like money there is only so much traction you have to work with. slow steady gains that will sustain themselves are better than all out gain at the expense of having to lose time gathering yourself back up. Savvy?

[goof2]

Originally Posted by shmike

Wal-Mart always looks out for the customer.

It has nothing to do with profit margins or share prices.

Two companies I can think of off the top of my head that didn't seem to care about profit margins, share prices, or what the customers wanted are GM and Chrysler. How are they doing?

What makes you or breaks you in retail is same store sales over time. Wal-mart is able to keep those numbers increasing fairly consistently despite the fact that the ones I have been in are dirty and take about forever to get checked out of. People don't seem to care.

Target pretty much has the same crap as Wal-mart but it costs a few percent more. For that few percent more the stores seem to be cleaner and wait times are significantly reduced. Despite these improvements in shopping experience Target has around 15% of the revenues of Wal-mart.

In general people are willing to trade a good shopping experience, helpful and knowledgeable employees, and a desire to buy American products if it means keeping a bit more money in their pockets. Wal-mart has figured this out and capitalizes on it. They slavishly focus on the one thing that makes their customers happy, lower prices. That is what makes them profitable and what drives their share prices up.

[goof2]

Originally Posted by smileyman

Rider owns this thread! He has it pretty nailed. Corporate greed sank our boat. Lets talk in a motorcycle analogy. We gained a couple decades easy profit by selling out to overseas like a racer might make big gains on the brakes going into a corner. The competition gets a cleaner entrance, line, and gets back in the gas quicker leaving the late braker for a time. Like money there is only so much traction you have to work with. slow steady gains that will sustain themselves are better than all out gain at the expense of having to lose time gathering yourself back up. Savvy?

How is it corporate greed? I guess it is a chicken or the egg discussion, but Wal-mart would not be the company that it is today if a majority of Americans didn't give a shit where something is made as long as they can save a few percent. I place the blame directly on the American consumer. The corporations are just giving them what they want.

[Rider]

Originally Posted by goof2

How is it corporate greed? I guess it is a chicken or the egg discussion, but Wal-mart would not be the company that it is today if a majority of Americans didn't give a shit where something is made as long as they can save a few percent. I place the blame directly on the American consumer. The corporations are just giving them what they want.

It's both but corporate greed is the main factor. US companies do not pay well enough so that ALL their employees can afford American made products exclusively. In addition to that, American companies are now outsourcing to foreign labor to increase profits. These foreign made products are making their way back to the US because the American consumers can only afford them or at least choose to buy to save money.