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The Fall of the House of Labor
Townhall.com ^ | December 14, 2012 | Pat Buchanan

Posted on 12/14/2012 5:42:22 AM PST by Kaslin

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To: Kaslin
By outsourcing, they could produce for a fraction of the cost of doing so in the U.S.A.

Econ 101: This is not true. The cost of a manufactured good can be broken down into:

  1. Materials
  2. labor
  3. Engineering
  4. Mgt and overhead
  5. Retail markup
  6. Advertising
  7. transportation

For the lion share of products the cost of labor is between 5 and 10 percent.

So even if labor was free the cost would not be "astronomically" reduced as some think.

21 posted on 12/14/2012 7:46:01 PM PST by central_va ( I won't be reconstructed and I do not give a damn.)
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