'Shark Tank' Inventor Loses Big to 'Buy American' Fallacy

[specsaregood]

Take a couple of economics classes,

Just wondering... the people that created our current debt crisis and economic situation, the same ones that couldn't see it coming and thought everything was great... those guys; did they take these couple of economics classes you speak of?

 

[MooCowzRock]

Just wondering... the people that created our current debt crisis and economic situation, the same ones that couldn't see it coming and thought everything was great... those guys; did they take these couple of economics classes you speak of?

Probably, but that doesn't mean they understood them...;P

 

[sparebulb]

The Shark Tank investors speak out of both sides of their pie-holes. The next episode or two after the ladder rack guy was given the bum's rush, the Sharkies were all clawing to invest with a guy who invented a plastic device that assists people to learn to play the guitar. This inventor manufactured his product entirely in the US and the Sharkies were all patting themselves on the back for supporting american manufacturing and creating US jobs. These creeps practically accused the ladder rack guy of being a racist for not wanting to manufacture in China, even after he cited valid concerns such as quality and loss of intellectual property.

 

[Brian4Liberty]

Shop around. There is nothing more key than that. The knee-jerk dogma that outsourcing is always a better option is no longer the reality. And it will be less and less as time goes on.

 

[Brian4Liberty]

The Shark Tank investors speak out of both sides of their pie-holes. The next episode or two after the ladder rack guy was given the bum's rush, the Sharkies were all clawing to invest with a guy who invented a plastic device that assists people to learn to play the guitar. This inventor manufactured his product entirely in the US and the Sharkies were all patting themselves on the back for supporting american manufacturing and creating US jobs. These creeps practically accused the ladder rack guy of being a racist for not wanting to manufacture in China, even after he cited valid concerns such as quality and loss of intellectual property.

Agree. It's a freaking TV show, it's not reality.

 

[Blueskies]

Shop around. There is nothing more key than that. The knee-jerk dogma that outsourcing is always a better option is no longer the reality. And it will be less and less as time goes on.

Sometimes its a better option, and other times its not.

In a free market, we can test this theory. In the long run, if outsourcing is indeed bad, companies that do it will fail and those that don't will succeed.

If outsourcing is good, companies that do it will succeed and those that don't will fail.

Let the free market decide.

Of course, opponents of free trade don't want the market to decide, because the market will decide against them and in favor of outsourcing. No different from socialists that want to redistribute income because they don't like the way the market does it.

 

[Jandrsn21]

I think outsourcing is bad. I think getting rid of minimum wage is bad too. We should support American made goods. Apple should have made iphone and ipad in America. They charge enough for the devices they could make them here. Kinda like the super expensive clothing that is made in foreign land. Don't tell me they could not make them in America. We should not have to compete with workers in foreign lands that have no protections that is why we should have tariffs.

It's not possible for Apple to make an Ipad in America and still compete.

 

[Brian4Liberty]

It's not possible for Apple to make an Ipad in America and still compete.

Pure dogma and opinion. There is no proof of that. There are a lot of variables.

 

[Mark37snj]

I think outsourcing is bad. I think getting rid of minimum wage is bad too. We should support American made goods. Apple should have made iphone and ipad in America. They charge enough for the devices they could make them here. Kinda like the super expensive clothing that is made in foreign land. Don't tell me they could not make them in America. We should not have to compete with workers in foreign lands that have no protections that is why we should have tariffs.

Most of the reasons/justification for outsourcing boils down to profit margin. How much is necessary. Well that depends on who is running the company. Yeah there are some products that cannot compete with virtual slave labor found in the foreign countries. But there are many that are, it all depends on WHO is determining what the minimal profit margin is necessary. But moraless CEO's sitting around $50,000 rare wood conference tables know their jobs and bonuses depend on them getting the maximun profit margin possible. One area that is often overlooked in these discussions is trade agreements. We do not trade with every country in the world and they do not all trade with us. We have no true Free Market/Trade system. All imports and exports are determined by trade agreements. No country has the RIGHT to sell their goods in our lands and vice versa regardless if their company headquarters is located in America, regardless if they can produce it cheaper than us. Trade agreements skewed by selective tariffs which determines what type of Free Market we have and all that cheap labor benefits overseas will go right out the window along with their arguments if no trade agreement is reached with that country. Free Market then dictates that its better to make goods in America at higher price because the lower cost products cannot be sold here. Trade Agreements come first, then Free Market principles. Trade Agreements are the RULES that Free Markets half to follow.

All Trade Agreements that the US makes should be in whats in America citizens best interest. But they are not and have not been for a long time and I have no interest in defending such a rigged Free Market system which inherently puts American workers LAST because of American worker wage requirements. I don't recall any part of the Constitution that says we have to trade with ANY country let alone ones that cheat. We are not required to raise the living standards of foreign workers. There is no higher law that says American workers MUST adopt a pay wage that is comparable to the rest of the worlds wage rate. Most of the world has a virtual SLAVE labor wage. Just because you can get virtual slave labor wages in foreign countries does not mean they should be allowed to sell in America under the guise of Free Markets because we have a rigged Free Trade system with countries cheating and not playing by the same rules that we are. You think other countries are gona allow their workforces to be decimated because American workers can do it better and/or cheaper.

America is one of the only DUMB ASS countries that allows the backbone of their economy to be destroyed like this and yell from the roof tops that the Free Market is working. You have countries practicing in currency manipulations, back room deals with our leaders to sell out our workers in trade agreements, a system now designed to redistribute American wealth overseas because HONEST labor cannot compete with virtual SLAVE labor. But if it has any hint of Free Market in it then it must be defended at all costs. We have NO truely Free Market in the world, the system is rigged against American workers. Trade Agreements come before Free Market principles, and all of Americas Trade Agreements have sold out American workers because our leaders have sold us out for their personal gain and ideology. The powers that be are using the so called Free Market (rigged against US workers) to redistribute American wealth overseas because the labor is cheaper and using the Free Market as a smoke screen so the rich and powerfull can get the biggest dividend on their stocks porfolios.

 

[Diurdi]

Just wondering... the people that created our current debt crisis and economic situation, the same ones that couldn't see it coming and thought everything was great... those guys; did they take these couple of economics classes you speak of?

This is a subject that most economists agree on. Both free market economists and pro-govt intervention economists.

The division of labor is a fundamental part of what makes us as humans so prosperous. International trade (and outsourcing) is simply the division of labor on a bigger scale.

 

[The Free Hornet]

I think outsourcing is bad. I think getting rid of minimum wage is bad too.

The least you can be paid is zero. The minimum wage laws are intended to see more people get that: zero. It does gain votes as more classes of labor are beholden to the govt for temporary economic security.

 

[Tpoints]

I was just searching for a thread that mentioned the show, I only just found out about it this week, good stuff! Definitely opens my eyes to new perspectives of the business world.

 

[Kotin]

I think outsourcing is bad. I think getting rid of minimum wage is bad too. We should support American made goods. Apple should have made iphone and ipad in America. They charge enough for the devices they could make them here. Kinda like the super expensive clothing that is made in foreign land. Don't tell me they could not make them in America. We should not have to compete with workers in foreign lands that have no protections that is why we should have tariffs.

you are not "thinking" at all.

 

[jmdrake]

Some of you honestly don't understand economics. Outsourcing will create jobs here in the United States, but it will create more consumption jobs rather than manufacturing jobs. A consuming economy is a shrinking economy.

+rep! I can't believe people would attack someone for choosing to make his product in the U.S. If you want to outsource than make your own damn invention and outsource it.

 

[LibertyEagle]

Someone explain something to me, please. Why is it that after the WTO was established and NAFTA, CAFTA, etc. were passed that the giant sucking sound that Perot warned about did in fact happen. In addition to the once fairly even trade balance between China and America that then became a huge imbalance illustrated by the stockpile of shipping containers that were not needed for a return trip to China. Jobs and entire industries were outsourced, including nearly all of manufacturing and a good portion of the software industry. Unemployment is as high now as during the Great Depression, with no end in sight.

Then tell me why you think this was a good thing. In your own words, please.

Thank you.

 

[dannno]

+rep! I can't believe people would attack someone for choosing to make his product in the U.S. If you want to outsource than make your own damn invention and outsource it.

It seems like somebody else could come up with a better design and do just that quite easily and run this guy out of business.

 

[jmdrake]

The Shark Tank investors speak out of both sides of their pie-holes. The next episode or two after the ladder rack guy was given the bum's rush, the Sharkies were all clawing to invest with a guy who invented a plastic device that assists people to learn to play the guitar. This inventor manufactured his product entirely in the US and the Sharkies were all patting themselves on the back for supporting american manufacturing and creating US jobs. These creeps practically accused the ladder rack guy of being a racist for not wanting to manufacture in China, even after he cited valid concerns such as quality and loss of intellectual property.

Thanks for the breakdown. I've never watched the show and now I'll be sure not to watch it. Hey, someone should "outsource" their stupid show. Make it in China with dubbing like a good old fashion 1970s Shaw Brothers kung fu flick.

 

[jmdrake]

It seems like somebody else could come up with a better design and do just that quite easily and run this guy out of business.

Seems like it. But instead we have "losartarians" complaining that Americans "lost jobs" because this guy wouldn't outsource.

 

[dannno]

Someone explain something to me, please. Why is it that after the WTO was established and NAFTA, CAFTA, etc. were passed that the giant sucking sound that Perot warned about did in fact happen. In addition to the once fairly even trade balance between China and America that then became a huge imbalance illustrated by the stockpile of shipping containers that were not needed for a return trip to China. Jobs and entire industries were outsourced, including nearly all of manufacturing and a good portion of the software industry. Unemployment is as high now as during the Great Depression, with no end in sight.

Then tell me why you think this was a good thing.

Thank you.

It isn't a good thing, but the cause of the problem isn't companies outsourcing. The problem is our currency is the reserve currency of the world. That is what gives businesses the incentive to outsource. Businesses need to make the most frugal decisions they can, otherwise another company will and then will drive them out of business. Businesses must therefore outsource to stay competitive, but it isn't their fault, it is the government's fault.

 

[jmdrake]

/points a finger at the newbie

Well this "oldbie" says the "newbie" is on the right track. While I'm against the government forcing someone not to outsource, I applaud the inventor for wanting to create manufacturing at home and laugh at those who think the Walmart jobs that (maybe) would have been created if he'd outsourced are worth a flip.