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 Post subject: Re: Walmart
PostPosted: Wed May 25, 2011 7:33 pm 
PHD From Del Rey University!
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Joined: Mon Aug 21, 2006 12:59 am
Posts: 2919
Correct, Jazz :)

Back in the late '60's, my father - an exec w/ Burlington Industries, then the largest textile producer in the world - stated that in the future, the USA would become a service economy b/c of the cost of labor. (He passed away in 1977, very young, at 48, so in one sense I'm happy he did not live to see the almost complete decimation of a once significant, proud American industry).

He was ovbiously influenced by his industry, textiles - which had already made a major move from New England to the south (VA and NC and SC) in the late 1940's to secure a lower cost of labor (and, truth be told, escape the unions) - even with the lower cost of labor and massive efficiencies in manufacturing, it was not enough - his industry was among the first to be sent offshore.

When I moved to Miami in 1979, there was a large, florishing textile industry in the area, employing thousands of mostly Cuban workers - even a program which allowed the goods to be sewn in places like Hati and the Dominican Republic and "finished" in the USA did not change things (Act 301 or 504??? I'm not sure). For all intents and purposes its a fraction of what it was even 15 or 20 years ago.

Its a fact that the low cost producer will win in the majority of cases and if places like CR get expensive, plenty of other countries are waiting in the wings ready to take their place.

PS Great meeting you in person! :) :)


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