Hmm, this is a strange
one! It's not uncommon to see an article in the Telegraph that's along the
right lines; and it's not uncommon to see an article in the Telegraph that's a ball
of confusion.
It is, however, fairly uncommon
to see an
article in which the writer is confused in one paragraph, then in the next
paragraph comes up with the answer that explains his confusion, but then goes
back to being just as confused as when he started.
His grievance is that:
"Kitchen blenders used to be made in the UK , but now no
blenders are made here. All of them, every single one, is imported from abroad,
mostly from China .
What has gone wrong?"
Err... nothing has gone wrong;
this is the nature of trade, and what makes two countries progress simultaneously
by mutually beneficial transactions. If China
has the comparative advantage in x, y or z, then the purpose of beneficial
trade is that we buy x, y or z from China , not the other way round. Our writer doesn't seem totally unfamiliar with this principle:
"This is indeed a sad state of affairs. Kitchen
blenders are relatively simple to manufacture. Until the late 1980s Kenwood
made its iconic blenders in the UK ,
before moving its operations to China .
But why don’t we still make them? The production processes involved – tool
setting, machine minding, assembly, testing and packing – can mostly be learned
by a workforce in a couple of days.
You don’t need much management experience to run these
kinds of operations; to order the right components, ensure the correct
specification and quality standards, to keep waste to a minimum, and to make sure
that costs are kept under control.
Making kitchen blenders is not rocket science. So why
are none of them produced in the UK today? There is a simple reason:
the cost base in the UK
is too high. Essentially, it costs far more to produce them here than it does
in the Far East . As a result, not only kitchen
blenders but thousands of other medium and low-tech products, which could
perfectly well be manufactured in the UK ,
are all imported from abroad, mostly from the Far East ."
Ahem, yes - couldn't have
explained it better myself - it's because we can get these goods cheaper from
abroad that it would be more expensive for Brits to buy them as home grown products
rather than as imported goods. It's truly bizarre that the writer appears to
get the basics of this so well, yet so abjectly fails to grasp why lamenting
the lack of UK kitchen blender manufacturing is so foolishly short-sighted.
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