Cheap Enough Though
by
ihatethenewlogin
04/09/2008, 7:00 AM
The author correctly points out that the prices for the inputs of
consumer goods-- raw materials and labor-- are rising, and cites that
and some other factors to conclude that Chinese products will in turn
rise in cost. But the notion that Chinese goods will no longer be cheap
is extremely premature. Street prices in China are still very low and
wholesale prices "pifa" are up from insanely low to merely very
low. Most of the Chinese-made, WalMart sold goods will inch up in
price, but not enough to send those who regularly shop there away with
empty bags. Other American retailers will have two choices: bump
up prices a smidge, or leave prices where they are and be content with
slightly smaller profit margins. Americans face large price hikes in
fuel, heating, air conditioning, electricity, food and other consuption
goods, but clothing, toys, consumer electronics and what I have called
CCPC for many years (Cheap Chinese Plastic Crap) will remain a bargain
foir quite a while to come.