When will my paycheck stop shrinking????

[Mark42]

Another example of this ridiculous inflation eating up our money:

Last year a primer bulb with 6 feet of fuel hose attached and no end fittings (aka Generic) was just under $17 at my local walmart. Even with state tax, it was cheaper than I could order online.

Yesterday I buy the same bulb for the other boat, and its now just under $21.

If the price of stuff made in China keeps going up, might as well make the stuff in the USA!

 

[Limited-Time]

Re: When will my paycheck stop shrinking????

Another example of this ridiculous inflation eating up our money:

Last year a primer bulb with 6 feet of fuel hose attached and no end fittings (aka Generic) was just under $17 at my local walmart. Even with state tax, it was cheaper than I could order online.

Yesterday I buy the same bulb for the other boat, and its now just under $21.

If the price of stuff made in China keeps going up, might as well make the stuff in the USA!

Have you heard the term Re-shoring?

 

[CN Spots]

Re: When will my paycheck stop shrinking????

Look at the price of small marine fuel tanks at Wallyworld. The last one I bought was around $20, now they're $50. That's a lotta clams for a glorified milk jug.

 

[scipper77]

Re: When will my paycheck stop shrinking????

I know it's a lot cheaper to make "stuff" in china, but I've never understood how it can still be so much cheaper after you factor in the cost of shipping it half way around the world. Maybe as the price of fuel increases you will see more and more U.S. manufactured products in stores?

I don't have any issues with China, it's all about economics. They are not hurting our economy by selling things, we are buy buying. (sorry for the political tone of the last statement.)

 

[scipper77]

Re: When will my paycheck stop shrinking????

Look at the price of small marine fuel tanks at Wallyworld. The last one I bought was around $20, now they're $50. That's a lotta clams for a glorified milk jug.

Fuel tanks cost pretty much nothing to make, again your paying to ship a large item 1/2 way around the world.

 

[Tim Frank]

Re: When will my paycheck stop shrinking????

Fuel tanks cost pretty much nothing to make, again your paying to ship a large item 1/2 way around the world.

Not quite right...
The first one is REALLY expensive...after that they get cheap.....

 

[JB]

Re: When will my paycheck stop shrinking????

Jeez, guys. Pay attention.

The purchasing power of the Dollar has not, in my lifetime (looooong time), ever increased.

No theories, just facts. Live with it.

 

[Brewman61]

Re: When will my paycheck stop shrinking????

Factories would move back here very quickly if it was less expensive to produce the product. You have to look at a lot of variables- the cost of shipping is only one. And I understand that ocean shipping is relatively inexpensive. In a way, the playing field isn't exactly level. In some countries, there are no labor protection laws, pensions, or benefits, and the wages by our standars are extremely low.
No environmental or OSHA or workman's compensation issue to deal with, relativley cheaper land and buildings, no pollution controls.
It all adds up to a cheaper production environment.
At one time Japan was the China of today- cheap costs. But the economy in Japan built itself up over the decades and their costs increased and they became unable to compete with Korea, India, China, etc.........
Part of the problem is that wages are stagnating- higher unemployment, keeps wages lower since the worker pool is so large.
In order for your paycheck to "Catch Up", your wages will need to rise faster than the cost of the stuff you buy.
In some ways it has. Look beyond the hard dollar amount. In the 1960's a color portable TV cost $500, and consumed a month or two of the average joe's wages. Now you can get a MUCH better TV for about the same dollar cost, taking only a few days of wages to buy. It's a complicated issue.

 

[Philip_G]

Re: When will my paycheck stop shrinking????

CNN had an article the other day about a potential renaissance in american manufacturing. Apparently labor in china is getting to the point that it's not financially viable to manufacture there unless the goods are for the chinese market. Does that mean they'll come to the US? Probably not, they'll go to india or somewhere else I'd bet.

Basically the same article I read
http://abcnews.go.com/Business/manu...t-manufacturing-renaissance/story?id=13597381

 

[Limited-Time]

Re: When will my paycheck stop shrinking????

To top that off Chinese companies are compensated up to %13.5 as a government incentive to export product to the US. At least the companies we deal with.

 

[Huron Angler]

Re: When will my paycheck stop shrinking????

Fiat currency(paper money) always returns eventually to it's intrinsic value...zero.

Some take longer than others to run the course.

Zimbabwe recently issued $100 trillion dollar notes to compete with ludicrous inflation, so it could be worse I suppose.:facepalm:

Of course, since CPI now excludes food and energy, this inflation does not really exist.

 

[Fly Rod]

Re: When will my paycheck stop shrinking????

NEVER!!

In 2012 be pepared to pay an over the road milege tax.

 

[bruceb58]

Re: When will my paycheck stop shrinking????

There is an easy solution...just make more money and don't worry about it!

 

[jkust]

Re: When will my paycheck stop shrinking????

Everyone should be required to be proficient in economics. I realize you guys get it but man the country would be a different place if everyone understood at least a little more than the basics.

 

[fishrdan]

Re: When will my paycheck stop shrinking????

4-5 years ago, I spoke with someone who dealt with China manufacturing, they imported China goods. He said a WHOLE CONTAINER cost around $4000 to ship, just think how much you can stuff in a container.....

That was several years ago, but even if you double the shipping cost, it's still an insignificant cost compared to how much you can stuff into a container.

Another friend said his buddies business had to go China to compete, compete or get left in the dust. Something shocking this guy found out, the DOW plastic he was using was far cheaper to buy in China, than in the US. Now the kicker, the plastic is manufactured in the US! Go figure...