Retail desperation

[Irond Will]

Originally Posted by gnatty8

Hell for whom? Certainly not those areas of the world where incomes are converging upwards. Potentially for sectors that are losing their comparative advantage, but I don't think one can argue free trade is hell simply because overpaid (relative to their productivity) workers see their jobs competed away by a developing country's workforce who will do the same for less.

It's not just labor costs or union demands that keep American goods uncompetitive. Germany pays higher salaries than Detroit, but BMW, Audi and VW are going strong while Detroit is failing.

 

[gnatty8]

Originally Posted by Irond Will

It's not just labor costs or union demands that keep American goods uncompetitive. Germany pays higher salaries than Detroit, but BMW, Audi and VW are going strong while Detroit is failing.

Very few VW are manufactured in Germany anymore. In fact, I think most VW that are made for the US market are manufactured in Mexico. BMW and Audi compete in a different market than GM/Chrysler/Ford, so the example is not very valid IMO. Its like comparing Canali or Corneliani RTW to Jos. A Bank.

 

[raphael]

Originally Posted by haganah

Go wear a burlap sack Mao.

Price-gouging isn't "capitalism", comrade. There's more players in the so-called "luxury" markets today but they've been busy raising prices instead of competing for customers because of irresponsible spending and easy credit.

What's bad for retailers is actually good for consumers so I'm looking forward to the meltdown.