Global economy

[Steve]

Do you feel a global economy improves our competitiveness in the U.S. or does it hurt us?

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I feel it hurts us. Look at China right now. The last 5 years of their growth, has dramatically hurt us not only in steel prices, but gas prices as well

[Steve]

The thing I think of especially is the auto industry. Is out auto industry going through a shake up now because of the global economy and ultimately is that a good thing for us or not?

I was watching a show on Delphi and GM. They said Delphi made spark plugs for GM. It cost Delphi $2.00 per plug to make them and GM bought them for $1.50. The math made no sense and I am guessing this is why Delphi has gone bankrupt.

GM now buys spark plugs from China for $.50 a piece.

Will this force us to rethink the way we make things and make us more competitive?

[kc2006]

Originally Posted by [b

Quote[/b] (Team Gopher @ April 18 2006,1:33)]Will this force us to rethink the way we make things and make us more competitive?

I think there's only so far you can go to rethink things or make systems more effecient.

It's like the lawn industry, take someone who does nothing by the books and he can charge 15 a lawn and still make money, where as us who do everything by the books would need 25+ just to make a profit from it.

I think it's all because of their labor costs, that's how they're getting away with doing stuff cheap, but alot of times their material isn't as high quality as ours (steel for example)

[Steve]

That is a very good point. What I wonder next is what happens when the people of these other countries want to be paid more and want better lifestyles. Then wouldn't the cost of production go up in those countries?

I personally think what is going to happen is two things:
1. The US is going to start to invade these oil rich countries and take them over. Perfect example is Iran which is the 2nd largest oil producer. If the US was to invade Iran right now, take over the government, take over the oil fields, then probably gas prices would dramatically decrease.

2. The US is going to become a third world country.

[Steve]

I would like to see more innovative technology development to help us use alternative energies. Such as solar.

We have many bright minds, I would like to see them put it to great use.

I can honestly see gas at $4.00 a gallon this summer

[Steve]

I wouldn't bet against you.

The thing I wonder now is, was it such a great idea to let Exxon and Mobil merge?

I am totally for the government taking over the oil industry. Let them set the prices for the industry. I don't see why each state should have it's own set rate for the entire state. It's the same as taxes. Each state has their own state tax. Why can't they do that with the oil? For example, I am paying $2.95 here in gas right now, yet 20 miles away, the price is only $2.80. Why? Set the price the same in the entire state.

Perhaps the state should step in, instead of the federal side then.