Saturday, September 22, 2007

freakanomic

Recently in US , there's been uproar on China-made products . Be it toys , cribs and mostly children-related products .

Sometimes it makes me wonder if the whole notion is actually an indirect trade barrier done discretely by the US . In other words , one way of decreasing demand for China's exports .Lately , most american manufacturing companies have been employing Asian workers - majority from China . As they cost half to be hired and pretty much more efficient than hiring American workers . So , perhaps due to this frustration that the demand for American employment itself has beeen declining , tarnishing the image of the successor country seems like a handy way of curbing a certain problem .

In the economics world , a simple shift to the demand curve can cause the whole nation to suffer sometimes .

less demanded by the consumers
less will be supplied by the suppliers
to cut down the supply means they need less workers


if demand drops even more , some manufacturing companies might have to shrink down their business . or in severe cases , gulung tikar .

unemployment rise
government have to supply higher amount of social benefit ( for the jobless , homeless). tax rate could increase ..
crime rate could increase if things becomes critical.

I mean , of all the products to choose . One concerning health would be the highest regarded in the sense of importance . What more a child's health . A parent's best asset .

After choosing an issue to attack on , the rest is in the media's hand .

First was the lead paint .

"Today, Mattell issued a company apology to the entire nation of China when it became clear that the amounts of lead paint that were in the recalled toys did not exceed CPSC limits. Instead, the problem lay tiny magnets in the toys that children could swallow and get sick from - which was a design problem on Mattell's end, not China's."

but the damage's done . no ?