July 23, 2017

IT'S A DEFLATIONARY EPOCH:

Americans Say They Want Products 'Made in America.' but Price Comes First. (Heather Long, 7/23/17, The Washington Post)

Walmart executives understand price is king for most American consumers, and they've used that knowledge to build one of the world's most valuable companies: "Our customers tell us that where products are made is most important second only to price," a Walmart spokesman said when asked whether Americans care if something is made in the United States, China or elsewhere.

Trump keeps talking up "Buy American, hire American." It's part of his plan to create the most jobs of any U.S. president yet. He brought a firetruck to the White House lawn all the way from Wisconsin last week to try to promote U.S. products. He jumped in the driver's seat, grinning and giving the media a big thumbs up.

Many have pointed out that Trump's words don't match his actions.

He promotes American-made at the same time that he and his daughter Ivanka Trump manufacture their own products overseas, in countries such as Bangladesh, Indonesia and China, as a Washington Post investigation detailed. Just last week, Trump's Mar-a-Lago Club applied to hire 70 foreign workers.

The problem is a lot of Americans do what the Trumps do: They say they want to buy stuff made in the U.S.A., but when asked if they would be willing to pay more for it, they reconsider.

An Associated Press-GFK poll last year found nearly 75 percent of Americans prefer to purchase American-made goods, but only 30 percent were willing to pay more for them.

The Boston Consulting Group has studied these trends for years and concluded that companies can only charge about 5 percent more for products made in the United States.

The Reuters-Ipsos poll out last week found that Republicans are the most likely to say they would be willing to pay more, although they also balk at paying more than a 5 to 10 percent premium.

Posted by at July 23, 2017 5:24 AM

  

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