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Old 10-24-2011, 07:46 AM  
Sly
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Join Date: Sep 2004
Location: Austin, TX
Posts: 31,358
Quote:
Originally Posted by Lucy - CSC View Post
It can be produced locally like food can be grown locally cost effectivily. We are not talking cheap shit sold in super markets but high end stuff. The main problem was what I outlined that the money was not there for credit lines etc to finance it and that is why it is moving abroad.
Ok, lets say Bob sells widgets. Note: he doesn't actually make them, he just sells them.

Bob has $25,000. He sells widgets for $350.

Widgets cost $100 to buy from China. Widgets cost $300 to buy from Omaha, NE. Bob buys 250 from China and makes $62,500. Bob could only buy 83 widgets from NE and would make $4,150.

Bank of America loans Bob $100,000. Bob now has $125,000. Buys 1250 widgets from China, profit $312,500. Or 416 widgets from NE, profit $20,800.

Bob is not buying from Nebraska no matter how much money you free up for Bob. Bob will buy from Nebraska if the conditions are right (better quality, better service,) but he is not going to buy from Nebraska simply because he has more money from the bank. That makes absolutely no sense at all.
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