Economic Confusion, Part 3

Just read a fine story on So Far From Heaven about a guy living The American Dream, versus China, which reminded me of some casters I bought this summer. I built a stand to support an engine while I was working on it. I mounted it on casters so I could move it around as I needed. I bought the materials, including the casters, from Home Depot. Later on I needed a straight edge, so I went to Harbor Freight, which only sells stuff from China. I'm looking around, because it is a tool guy's paradise, and I notice they have a furniture dolly for sale and the price of the whole dolly is less than the price of the four casters I bought at Home Depot.

Of course, the casters I bought from Home Depot could have come from China as well, the relatively small difference in price could just as easily be explained by different business models.

Harbor Freight is an amazing place for anyone who wants to buy tools. The prices are amazingly low, it is very hard to resist the temptation to buy something there, especially if it is for a one time use. If you are using a tool in your job, and you use it all day long, Harbor Freight may not be your best choice.

Buying American is hard to justify when you hear stories of corporate malfeasance and union workers making a hundred grand a year and you are unemployed.

But what about the Chinese? Does buying stuff from China help out the Chinese? My image of China is a country that is still very poor, but is trying to turn itself into a first world country. That was what the Soviets were trying to do with Russia, until it all fell apart. China, being inscrutable, may have learned something from the Soviet collapse, which is why they are sucking up all the money they can, i.e. not allowing the yuan to float and dumping exports. So freedom is curtailed in China, you can't call the party leaders stupid pigs, but there is some economic progress, and it is trickling down to the peasants.