A thought crossed my mind while watching the animation on Wednesday's ABC World News Tonight ...

[zbdent]

where is there a shoe factory in America?

Kinda blows apart the point they were trying to make about deflation ...

rough synopsis ...

Consumer wants to buy shoes, but feels that they're too expensive ...

Shoe store owner does a sale to draw in consumer ...

Consumer buys cheaper shoes ...

Shoe store owner doesn't make as big of profit on shoes, decides not to restock unless factory knocks price down (sale) ...

Shoe factory knocks price down ...

Shoe factory doesn't make as big a profit, has to lay off employee(s), and tells suppliers that the factory can't order more unless their prices are knocked down ...

etc. etc. etc. ...

and the thought crossed my mind ... the point falls apart if there are no shoe factories in the U.S. ...

[Radical Activist]

1. And why is cutting employees the only way to absorb a loss of profits?

Most of the cost of something you buy isn't related to labor costs. The problem is that it isn't enough for a company to make money anymore. They have to make more than the competitors in their field so that their stock will go up. Doing something about that system could help.

[zbdent]

2. and don't forget, when something IS made (assembled) in the good ol' U.S. of A.,

most, if not all, of the parts are manufactured in furren countries ...