Quote:
Originally Posted by eweissenbach
I cannot verify their assumptions, I can only use their numbers as presented. If you bought the items from Wal Mart, the money Wal Mart paid the producer of the products would go to American companies as opposed to Chinese or Bangladeshe companies. Thus those companies would realize greater revenue. Wal Mart's take is revenue neutral, as they presumably would make the same margin of profit off either item.
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Still not sure.....I picked Walmart as an example because of the high % of foreign manufactured goods they sell and to buy "made in USA" people would presumably have to shop elsewhere thereby taking revenue away from Walmart. But even if Walmart was selling the identical products side by side....one made in the USA and one made elsewhere, and selling them for the same price, then you are right, Walmart would be revenue neutral if walmarts cost to purchase the items was equal. However, if we assume that the foreign product made with cheap labor cost walmart less, than a)walmart probably wouldn't sell the more expensive cost item and b)if walmart had the same cost for both items then the one made with cheap labor would generate more profit for the manufacturer who could then further lower his price to drive his American competitor out of business. Actually, I believe the scenario I just described is what has happened in the world. I know I've made a bunch of assumptions, but it's interesting to talk about.