End Priveleged Class, End Unions.

[Phokus]

I swear to GOD! This is my last try.

You walk into a store. You see two equal products of different prices. Assuming you need the product, do you buy the cheaper one or the more expensive one?

Screw China, Screw Germany, Screw everything else! In a normal every-day situation, which do you buy?

Of course the cheaper one, because i'm a rational consumer who rejects stupid shit most consumers buy and thinks about purchases in terms consumers typically don't (i.e. marginal utility). But you have to remember that even if one product has the same quality as another, but cheaper price tag, consumers won't automatically buy it over the other (i.e. branding has quite a bit of power). Price is only one part of the equation in what consumers decide to buy, which is probably one of the reasons why Germany is able to keep a manufacturing base, people WANT German products.

 

[Atreus21]

Of course the cheaper one, because i'm a rational consumer who rejects stupid shit most consumers buy and thinks about purchases in terms consumers typically don't (i.e. marginal utility). But you have to remember that even if one product has the same quality as another, but cheaper price tag, consumers won't automatically buy it over the other (i.e. branding has quite a bit of power). Price is only one part of the equation in what consumers decide to buy, which is probably one of the reasons why Germany is able to keep a manufacturing base, people WANT German products.

FINE!

Now I completely forgot why I brought it up.

 

[Phokus]

Just curious Phokus because I skimmed your articles, is it like tooling and industrial equipment that is high on the exports? or are consumer goods making a killing in China as well? Quite different things with very different demands. I bring it up because China makes rather crappy tooling and precision equipment, only the poorest of craftsmen I've come across would even consider buying Chinese equipment, yet it is sold here everywhere.

I don't know, but i imagine tooling and industrial equipment are definitely part of that... Most of their products aren't banded stuff that attracts a premium like BMW/Mercedes, but high niche products who aren't household names, but they are extremely good at producing it. Edit: This is Germany's small/medium businesses in a nutshell:

http://en.wikipedia.org/wiki/Hidden_Champions

Edit: Although i probably wouldn't consider a producer of Chainsaws to be 'niche'

 

[bfdd]

I don't know, but i imagine tooling and industrial equipment are definitely part of that... Most of their products aren't banded stuff that attracts a premium like BMW/Mercedes, but high niche products who aren't household names, but they are extremely good at producing it. Edit: This is Germany's small/medium businesses in a nutshell:

http://en.wikipedia.org/wiki/Hidden_Champions

Edit: Although i probably wouldn't consider a producer of Chainsaws to be 'niche'

For sure, was kind of curious because Germany does produce quite a bit of high quality industrial equipment and tooling.

 

[JSt0rm]

there are many factors besides price when purchasing something.