This could be way off the wall, but just maybe the reason US stocks keep chugging along while China and Japan are falling off cliff, is that American firms are offering more quality services and "Stuff" on general, than are many other countries.
Most people tend to only view cars as their most obvious experience with "Foreign" made goods or services, but our economy goes way beyond that
This is very hard to quantify, however one important aspect of global competition, and primarily that of cheap labor, is generally speaking, you get what you pay for. Cheap labor does little to promote or incentivize quality. Its about getting the mostest with the leastest.
20 years of fighting and surviving cheap foreign labor, has had to have promoted innovation in a number of businesses competing globally and locally. Quality is just one of many, but on the whole, I think American firms often exceed their counterparts globally, and firms that export internationally, tend to force their local suppliers to meet higher standards that allow those primary and larger firms to compete.
Don't think this is measured well, or captured by any firm, but over time it wins over new business. People or consumers or businesses get fed up with buying junk, or poor service.
Perhaps us stocks are the place to be, even without Bernankes shennagins?
america just building better stuff
Started by
nimblebear
, Jul 30 2013 10:33 AM
1 reply to this topic
#1
Posted 30 July 2013 - 10:33 AM
OTIS.
#2
Posted 31 July 2013 - 12:15 AM
Intellectual property is protected in US, this is the biggest difference. It keeps the competition for the high end products alive. However, all low margin production have already left the building... Most Americans will continue to see their standard of living weakening as the trend appears irreversible.
Edited by arbman, 31 July 2013 - 12:16 AM.