The Price of “Made in China”

Shoppers often make selections based on price, and in a free market system, governments contracting out work or projects are expected to choose the lowest bidder who can provide the most efficient, highest quality work. Decisions focusing on price alone – which often leads to China garnering so much business – may neglect some hidden costs, argues Peter Navarro, a professor of economics, in an opinion essay for the New York Times. He notes that other considerations include safety, delays, cost overruns, competing subsidies, environmental damage, human rights, jobs and the spillover effects of local workers spending in the local economy. “Buying ‘Made in China’ — whether steel for our bridges or dolls for our children — entails large costs that most consumers and, sadly, even our leaders don’t consider when making purchases,” he concludes. “This is hurting our country — and killing our economy.” – YaleGlobal