Don't Just Sit There! The Economy Won't Fix Itself and Nor will the Fed
By Steven Ferry Chairman, International Institute of Modern Butlers | February 05, 2012
Just from my recent experience with batteries, I have to say, "Thank goodness life is not made in China." The cell phones my carrier mandates are made in China. After two months, the first battery could hold no charge. The earlier phones were made elsewhere and lasted seven years. Similarly, the 17-inch Apple laptop made in Taiwan and purchased eight years ago is still going strong with its original battery operating at 70% capacity. The Chinese-made 17-inch Apple laptop bought two years ago is already on its third battery.
Some of us prefer to pay for well-made products that operate effectively, yet when we try to buy a cell phone, landline phone (or almost anything else you care to name) that has not been made in China (usually with as many short cuts as possible to maximize profits) it proves practically impossible. The ubiquity of it all makes for a grim shopping experience.
Extrapolating into the hospitality world, imagine if hotel ratings were adjusted so that two-stars were reported as five-stars because occupancy rates were insufficient in "higher-end" hotels to justify the service levels of "old-style" five-stars.
China is not the target of this little question, by the way-it takes two to tango: if the West did not demand cheap, then manufacturers would not close down their US and European operations (and economies) and move to the Far East. One could say the same about street drugs: No demand, no traffic from Columbia, Afghanistan, etc. We have brought these conditions upon ourselves.
Take the current economic collapse. China didn't create that, although the new US Treasury Secretary, Mr. Geithner, implied as much recently regarding their alleged currency manipulation and factual underwriting of the US housing boom with their subsequent excesses of cash. No, it was people like Mr. Geithner who did, simply by being ignorant of the fundamentals of economics, espousing instead theories so arcane and abstruse as to turn a simple subject into a cult with membership only for the cognoscenti (knowledgeable). Again, my intent is not to target or finger point individuals when it has been a group effort that has led us down this path. Instead, my gnarly (knobbly) fingers are pointing at the lack of a manual for life that highlights fundamentals; in this particular case, regarding economics.