About 80% of all the electronic products in the world are manufactured in Shenzhen, China. Almost every clothes are manufactured in China, Mexico, Turkey, Bengladesh or Morocco. The common narrative for this is the lowest cost. But wait a minute, is that so true? Do companies make more profits from offshoring? I am not so sure.
In general, an employee in Shenzhen will make about 900$ a month, and 400$ a month when they work in clothes manufacturing. All importation taxes are reduced to zero to US and Europe (for example, just assemble everything in Norway and then export duty are free in Europe) in most cases. On the contrary, if you produce something in Europe or USA, you have to pay custom taxes to China, India, Saudi Arabia and other great democracies. Trump is right: what kind of idiot would agree to such agreement? Well, all of us when we think that salaries is the only reason for offshoring.
Yet, when breaking down the costs, it is clear that labor costs account for 0.12$ for a 14$ T-shirt (yet expensive!) – that’s about 1% of the labor costs. For electronics, this goes exactly the same, 1% of the total production cost!
Let’s do some elementary maths. Our Chinese friend earns about 350$ a month, that’s barely what gets a Polish, Latvian, Estonian, Lithuanian, Russian or, Romanian worker in Europe, so let’s give in an increase to 2000$ a month. Since we multiply the salary by 6, we should say that now, the labor costs just increased by 6. So, for an iPhone, it will be a $6 increase on a $600 phone, and for a $14 T-Shirt, that will be a $0.6 extra more to pay. Sounds affordable to me! And it was not even taking out the extra cost of offshoring and shipping back the product.
One may say that white countries have fewer resources at their disposal to manage the production locally. But it doesn’t matter, because that is what trade is for! And in any case, it is almost always possible to use different resources to manufacture the same products. If not, then making higher quality products enables saving resources. Here is the US report over the world mineral resources consumed and in reserve. You can consult here the main resources required.
So, offshoring can’t be justified by the cost solely, even if all other costs would remain equal. The only way to justify American and European industries offshoring is by admitting the existence of an economic war. There is no doubt that the sole reason is to create unemployment in white countries in order to:
- Promote leftist policies: people with no money turn to the government as a savior, and vote socialist.
- Develop white guilt: our politicians point out the child labor in developing countries, telling whites are responsible for it, while also asking whites to pay to help these people.
- Decrease local salaries: people see that jobs are gone and are ready to accept lower salaries. For example, in France, Belgium or Germany, a young graduate engineer (the so-called rich industrial) will most likely earn between 1000$ and 2000$ max while working 50h to 60h a week.
- Promote 3rd world immigration: these “newly skilled worker” from India, China and other countries now have the knowledge and diploma to apply for local jobs in America and Europe, taking even more jobs.
- Destroy white industry and render white nations totally defenseless while a inevitable civil war is on its way.
Since salaries are not the explanation. Libertarians will point out heavy American or European regulation. And they are right (but it still does not add up for the cost). But then 2 questions remain unanswered:
- Why are those regulation in place? They make us obviously poorer yet are impossible to remove…
- Why not moving to Central and Eastern Europe? with little or no time zone difference, similar culture, smart,devoted and cheaper labor…
Offshoring is a LIE . A tool to demoralize white men through guilt and a sense of hopelessness. People need to know the evil of this policy and why it does not have to be this way.