In response to the Dec. 8 letter “China loves Christmas,” I believe we are our own worst enemy. Americans’ desire to accumulate things results in their love of the cheap products produced in China and other countries. The abundance of “dollar stores” is a great example.
People operate a business to make a profit. When faced with the difference in labor and tariff rates between the U.S. and China, U.S. companies cannot sell their products at comparable prices and make a reasonable profit. Our decisions to purchase the cheaper Chinese products forces the “powerful Americans” to move their manufacturing facilities overseas or go out of business. No one seems to “give a hoot” that American workers lose their jobs.
I also have trouble with the letter writer Alex Sundberg’s comment relative to the Forbes 400 richest billionaires doubling their net worth in eight years. Net worth is assets minus liabilities and can be increased by using income to reduce liabilities. Why is it that the news media always seems to report a company’s “gross profit” and not mention their “profit margin,” which is the money left after operating expenses and taxes are paid? Because the fact that the S&P 500 companies average a profit margin around 9 percent, auto industry around 4 percent and food retail businesses around 3 percent doesn’t impress the public as much as their gross profit numbers.
