Check out this story from NPR about the Invisible Hand at work. You can also listen to the story if you prefer. It is an excellent article about the pros and cons of globalization in the once thriving U.S. sock industry.
Sunday, December 02, 2007
Death of the U.S. sock industry
Check out this story from NPR about the Invisible Hand at work. You can also listen to the story if you prefer. It is an excellent article about the pros and cons of globalization in the once thriving U.S. sock industry.
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21 comments:
Well...I must say I've never really thought THAT much about where my socks came from before! While the U.S. sock industry is kind of a random example, I think it does show how it is good to have some sort of diversification in the economy-everyone always expected to work in the sock mills, so they never bothered to get an education and limited opportunities for other work. Plus, it seems to me that the sock industries in Fort Payne were too complacent- they weren't trying particularly to innovate their process or product to compete (why not find a way to make seamless socks?). As a result, they lost to the overseas competition that actually turned out to be a good thing, as education began receiving more attention.
I feel bad for the U.S. sock makers. It seems that by helping out other countries such as Honduras, the Americans are hurting themselves and ruining their chances to survive. Hopefully it will not get to the point that other countries are better at most things than the U.S. because we gave them so many opportunities.
The government should think about U.S. before they help other countries. Other countries are going to pass us over if we don't act fast. Retailers need to look at the quality of the sock not the price.
If the sock making is that industry is that complex, there must be some sort of mafia or underground market too. To think that political decisions are being made of NAFTA concering socks is ludicrous yet, understandable. As the paragraph stated, over 13,000 people lives and jobs are at stake in this small town sock making. I is sad to see more American's outsourceing products, but if its cheaper, it is cheaper. We just need to find a way to cash into this frenzy because i can bet, china, Ecuador, and Honduras are banking seriuosly off this. So my prayers are with these people of this town, but if its better for our economy both short term and long term then well, lets get it done. Get some.
I never really gave my socks much thought before reading this article! I feel bad for those people who lost their jobs due to the cheaper costs of importing them from other countries, but I do understand that we should use the most economical way possible to get our socks. I suppose it was just an unfortunate reality check for those Americans as to what the U.S. will do to get the best deal for their money.
Although I have never thought much about socks, this article shows how the United States tries to help other countries by buying and importing their products but at the same time also hurt the American economy by leaving many jobs at stake. The socks may be cheaper to buy from elsewhere but in the long run the choice to import from other countries will hurt the American people.
I'm actually surprised that this has not happened earlier because i feel like everything is made in China or somewhere out of the country. i just hope that the people that were laid off can find new jobs.
"That little line near your toes, that seam — it is what's killing the U.S. sock industry." i really had no idea. I usually do not give that much thought into the socks i wear. At least in the US there are job oppurtunities for those who were laid off.
I think that they analyzed soccer way too much. I understand that you can find economics in anything, but why soccer. Why not back up the theory by also studying another sport like volleyball or football? The article is a great metaphor that economics is everywhere, but it was random.
I always just assumed my socks, like everything else, came from China or another foreign country. I mean who knows who makes the better socks, America or Honduras, but in these days, it's all about the price people are willing to pay. If it's cheaper, we'll buy it...well, mostly. I just feel bad for those Alabama citizens who focus on the sock business as their main income...but at least now, they are beginning to gain some better stores with better wages.
I'm more than sure that this article is fabricated as much as it possible can be. There are far more situation's that's relavent to the U.S. that we should put more focus on. If socks are that much of importance, why haven't we heard about it before? The reason why we are all shocked by this article, is because everything is exagerrated to the point where we are shocked.
It is so weird that socks, plain old socks, have such an impact on so many people. This makes me realize how things so significant to some can be brushed off so lightly by others. Also, for most Americans.. "cheaper is better." Although the US is buying stuff at cheaper rates, buying from other countries is hurting the American economy. It is going to take a lot to inform American's that they are better off in the long run paying that 1 extra cent for socks, but it has to be done... OR ELSE! :)
I think it is funny that the end stitching cost so much more. HOwever, I also think that the United states government should have thought about america first. Plus, the people in the foreign countries are being untreated fairly by getting payed so little. I personally would pay the extra money to have a Fort Wayne Sock.
I agree with Sami. Why is the governement spending time thinking about socks when there are other more important issues that need to be dealt with. It's the sock company's problem for making that one part of the sock so much more expensive than the other countries' companies. This just shows how our governement is flawed in that there are representatives that are focusing on such obsolete topics, distracting itself from what really needs to be debated about and solved.
Although socks would notseem like such a problem, this article shows how the United States leaves many people laid off because of the help they offer to other countries, which ultimatley hurts the American economy. The socks may be cheaper to buy from elsewhere, but its also about the price people are willing to pay.
Although this seems like a big deal, I'm sure a lot of it is wording. The reader doesn't even find out that the laid off workers from the sock factories quickly found new jobs until the end of the article. It is important that we have a population that is employed; however, the beginning of the article makes this seem so dramatic... most of the people got new jobs in the same town. Plus, they're getting more money!
Wow. I never knew that the little bitty line running across the sock cost more in the U.S. than in other countries. The majority of the town of Fort Payne, Alabama worked in the sock factory. The loss of factories in that town seems to me like a good thing that happened. Don't get me wrong, its terrible that so many people lost their jobs, but the good thing about it is what amanda said, education. These people now have a chance, if they are willing, to go out and get an education that they did not get. Sure we were beat by China. What a surprise. Most of the factory workes in China, Honduras, etc. don't have proper education so technically, we beat China.
I really don't wear alot of socks but i feel sorry for the US sock industry. Because of th deal Bush made alot of people lost their jobs, sooner or later these countires might reliaze how many socks we recieve and raise their prices to make some sort of monopoly.
This article is weird, but in a sense, it actually interesting to know that the American sock industry could be declining due to competition with Central American countries like Honduras, over a simple seam in the sock. But then again, its not suprising that the sock industry of the US might be outsourced to places where the labor would be cheaper, since for the most part, the sewing of the seam would not be a purely automated job and would require some people, so it would be economically logical to use labor where labor is cheap. But then again, one has to consider the quality of the product, which can be interpretted both ways since capable and skilled people exist in both the US and other nations, so it would be illogical to assert that socks made in Honduras are inferior, quality wise.
Our jobs aren't running to China or India, we're air mailing them on a silver platter.
US workers are simply not competitive on anything but quality. Look at California and all the problems they have with workman's comp etc. You've got the UAW kicking the Marines out of their parking lots and ruining the car industry.
We need to step up, decide what the new rules are going to be, and sell it to the rest of the world - or at least those parts of it that we can. It matters little if we play "fair" and everybody else doesn't. We are the ones that suffer, so we are the ones that have to fix it. When the US doesn't take the lead, the world gets in trouble - whether they admit it, socks or not.
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