And buying stuff I need from the higher priced vendor (USA) cuts in to my personal profits. That’s my point. Why should the consumer fund the “Buy American” campaign? Why not the producers ?
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Because the producers ARE the consumers, and the consumers ARE the producers.
When your customers are only able to pay 60% of what they once paid for your product/service (because they are making less at their jobs), that will cut into your margins as well.
If you think you will then turn to your employees for more wage concessions (and your competitors and suppliers do so as well), then ultimately, your customers will also see a further reduction in wages. If this deflationary spiral sounds good to you — which would be much more vicious than an asset/housing price deflation, BTW — go for it! You first!
The reason why Americans have been the worlds #1 consumer is because our wages have been comparatively high (credit has masked the stagnation/deflation of wages over the past few decades).
Every producer NEEDS a consumer. Americans have been so brainwashed by the supply-side capitalists that they’ve lost sight of what makes the cycle go ’round. You need producers AND consumers. In a world where everyone is paid $2./day, to whom do you expect to sell all the wares you’ve so tediously worked to produce?
You cannot have higher asset prices over the long haul (and “growth” in the prices of things you sell) without wage inflation.
