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.

Once upon a time a lot of CCPC was American made. So I guess it was ACPC.

No, silly, it was CAPC-- Cheap American Plastic Crap. But the Chinese and Cambodians and Vietnames and Thai can make it cheaper than we can, so they make it now.

And I don't mean that CCPC as a slight: We're talking about 59 cent spatulas and $1.29 dish drainers. These are not great products, whoever makes them. But the Chinese make a lot of very good, servicable, inexpensive stuff. Bicycles, electronics, clothes, shoes. Americans spend a small fraction of what they used to spend on clothing, thanks to the Chinese-- which frees up a lot of income that can be spent on other stuff: travel, eating out, better housing.