[Jewelry making - Article 00257] - Re: [Orchid] Handmade vs mass-produced

[Dale Burnett]

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>     So the fact is our government some how manages to keep the
>     currency (i do not know) at a higher level than other currencies. 

    Governments attempt to influence the strength of their currencies
    relative to that of their trading partners, but they do not have
    anything like what one would call "control" over it.  There are a
    whole host of factors that come into play over which each respective
    government has no direct control, such as balance of trade,
    political stability, currency trading markets, natural resources. 
    Sometimes they are successful in exerting their influence, but this
    normally only occurs when agreements are reached with their trading
    partners.  Governments generally do not want to have a currency that
    is too strong because then their exports and hence their whole
    economy suffers.  Neither do they want a currency that is too weak
    because then goods purchased from other countries become too
    expensive and, again, their whole economy suffers.  Then there is
    the question of weak or strong in relation to whom?  A very delicate
    balancing act indeed, especially when you only have control over a
    very small number of influencing factors anyway. 

>     The cost of labor is lower than in the USA in some parts of the
>     world and there is absolutely no way whatsoever to change this in
>     the short term - least of all protectionism will help. 

    Absolutely correct.  Since everyone is not jumping into the
    industrial age at the same level, there is no way to achieve a level
    playing field in the short term.  Lower standards of living due to a
    shorter and/or different history of economic development for
    whatever reasons translates into lower labor costs than in the USA. 
    All of the solutions Will mentions are good and admirable but will
    take generations to achieve.  But there is a difference between
    protectionism and a fair and balanced and wise approach to creating
    a level playing field.  Simply throwing open the doors and declaring
    a trading free-for-all would have disastrous consequences, initially
    for the more economically developed countries such as the USA.  Even
    if it were desirable and the USA did eliminate all trade
    restrictions, tariffs, etc., the rest of the world simply will not
    do the same.  This has to be achieved as part of a long-term
    (another 100 years?) strategy to gradually make it happen through
    the means that Will suggests.  In the meantime, such trade
    regulations need to be carefully measured and applied.  As has been
    previously noted, American consumers will spend their money
    prudently (read buy cheap) but without a lot of regard for the
    country of origin of the products they buy even when from a US
    manufacturer.  But it is hard to blame them/us, when so many of the
    products in our marketplace now originate somewhere else.  Indeed, I
    would be hard-pressed to find US manufacturers for many of the
    products I use.  US corporations do not have the vision to see that
    if they all move their manufacturing facilities abroad they will end
    up with no one in the US who can afford to buy anything but the
    cheapest products because our standard of living will decline due to
    a lack of jobs.  That is why only the US and other industrialized
    governments are in a position to manage such a global
    transformation.  The question is, will they do so wisely, or will
    they bow to near-sighted special interests? 

	Best Regards,
	Dale

    PS - I am not an economist, nor do I play one on TV.  The views
    expressed herein are solely my own and do not necessarily represent
    the views of my government nor the corporation I was downsized from.


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