Friday, August 17, 2007

The Wages of Low Wages and Corruption

First it was tainted pet food - in multiple instances. Then it was toys - in multiple instances. The head of one of China's manufacturing operations committed suicide, and the former head of the regulatory board overseeing Chinese manufactures was executed for corruption as the Chinese reputation tumbled. Yet, we are still purchasing billions of dollars of goods from the Chinese and there has not been a single hiccup or notice from the Commerce Department that might show we have an interest in protecting consumers from the very bad manufacturing practices of what is, in effect, the slave labor of China that feeds much of the consuming beast of America.

The Democratic Presidential candidates are speaking up, with Chris Dodd offering the best solution - just stop trading with them. We no longer have any guarantees that any product we purchase from Chinese manufactures is safe or reliable. Until this situation changes, it seems to me we are serving our national interest in multiple ways by looking for alternative sources. Such as, perhaps, reopening manufacturing here in the United States. Of course, as some have mentioned, this might raise prices, because the costs of manufacturing in the United States, especially labor costs, are so much higher here. But, as these high wage jobs (at least relative to the slave-labor wages of most of China) will give consumers more money, the rising prices will be offset by more spending power.

As HTML Mencken at Sadly!No says, it is most likely that Chris Dodd will be labeled a fearmonger, an isolationist, unrealistic, naive, perhaps even racist (the Yellow Horde!). He's not, however. He's simply saying our trading policy might be served well by taking the self-interested step of protecting the American public from shoddy, dangerous products designed and built in a country that has little regard for the oversight necessary to protect people from harm. This might even be an instance where we can take Chinese anxiety over world public opinion in to account - they are acutely nervous about the way they are perceived in the run-up to the 2008 Olympic Games being held in Beijing. It seems to me that we might just mention that it wouldn't look good if the Chinese were shown to be shoddy, lazy, corrupt business people.

The first step is to simply close the valve to all those imports. Let the cargo ships float out in the harbor as long as they want, or send them back where they came from. Until the Chinese can step up and show they can make products that don't kill people or animals, it might behoove us to go elsewhere to do our shopping.

Virtual Tin Cup

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