Out Of Job Yet? Keep Buying Foreign!: Perfect example of economic stupidity

June 30, 2008

Out of Job Yet Keep Buying Foreign

From time to time I see an “Out of Job Yet? Keep Buying Foreign” sticker on an American car on the roads. This never fails to make me smile and say to myself: “A perfect example of economic stupidity naivety.” I wonder if the owners of these vehicles realise that their cars are not 100% American. Chances are the CD player and the cloth of their car seats are either made in China, Korea, Taiwan or some other countries in Asia. I also wonder if these same people also buy made in USA/Canada running shoes and sport equipment because if they buy Nike (American brand) products, the chance of having these same products made in USA/Canada is pretty much 0%. Let’s not start talking about computer and electronics because it is even worse.

The opposite is also true. Toyota and Honda have manufacturing plants in North America: they are Japanese make, but made in USA/Canada.

Why most of the products we buy today are made in Asia can be explained using economic principles, but at the end of the day it comes down to one simple reason: for a given level of quality, the same product made in USA/Canada can be made cheaper in Asia!