Why Amazon Can’t Make A Kindle In the USA – Forbes
An economist is someone who knows the price of everything and the value of nothing.
Old joke based on Oscar Wilde’s quip about a cynic.
Yesterday I noted how conventional cost accounting inexorably focuses attention of executives on increasing short-term profits by cutting costs.
The same thing happens in economics. Take a recent economic study that set out to shed light on role of Chinese businesses vis-à-vis American consumers. Galina Hale and Bart Hobijn, two economists from the Federal Reserve Bank of San Francisco, did a study showing that only 2.7 percent of U.S. consumers purchases have the “Made in China” label. Moreover, only 1.2% actually reflects the cost of the imported goods. Thus, on average, of every dollar spent on an item labeled “Made in China,” 55 cents go for services produced in the United States. So the study trumpets the finding that China has only a tiny sliver of the U.S. economy.
So no problem, right?
Well, not exactly. The tiny sliver happens to be the sliver that matters. What economists miss is what is happening behind the numbers of dollars in the real economy of people.
Strange Random China Quote:
“Let China sleep, for when she awakes, she will shake the world.” – Napoleon
- Does It Really Matter That Amazon Can’t Manufacture A Kindle In the USA? – Forbes (forbes.com)
- Using a Kindle in Japan (sheffnersweb.net)
- Amazon seeks Lab126 trademarks before their android tablet debut (android-tablet.org)
- Amazon.com: You Can Keep the Dog and Other Stories eBook: Ferne Arfin: Kindle Store (timezonetraveler.wordpress.com)
- Decisions, decisions. Consumers favor iPad over Kindle by 2 to 1 Margin says Hitwise (thenextweb.com)
- Now Available in Kindle! (writingtomarketing.wordpress.com)
- Dear Kindle Readers (bogost.com)
- Amazon & Kindle Part 3: It’s Not Just Manufacturing! (forbes.com)
Posted on August 22, 2011, in Article and tagged Amazon Kindle, Apple, China, Economics, Federal Reserve Bank of San Francisco, Forbes, IPad, Oscar Wilde, United States. Bookmark the permalink. Leave a comment.