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How much do you think it costs to make a pair of Nike shoes in Asia? (twitter.com)

697 points by taubek · 480 days ago · 987 comments on HN

Article summary

The article discusses the cost of manufacturing Nike shoes in Asia, citing a former Nike executive who stated that it costs around $25 to produce a pair of shoes that retails for $100. The article breaks down the costs associated with bringing the shoes to the US, including tariffs, freight, and insurance, which can roughly double the cost. The author argues that the idea of bringing manufacturing back to the US is more complicated than it seems, and that it may not necessarily lead to more jobs or lower prices. The article also touches on the topic of self-sufficiency and the strategic value of domestic production.

Main themes

  • Manufacturing costs
  • Global trade
  • Self-sufficiency
  • Tariffs and trade policies
  • Labor and jobs
  • Global supply chains

What commenters say

  • The US should prioritize domestic production to reduce dependence on foreign countries and ensure national security, even if it means higher costs.
  • The idea of self-sufficiency is not a viable solution, as it would require significant changes to the US economy and lifestyle.
  • Outsourcing manufacturing to countries with lower labor costs is a natural consequence of globalization and can benefit both the US and the producing countries.
  • The US military's reliance on foreign-sourced materials is a significant vulnerability that could be exploited in the event of a conflict.
  • Tariffs and trade policies can have unintended consequences, such as higher prices and reduced demand, which can negatively impact US jobs and the economy.
  • The strategic value of domestic production is not limited to military equipment, but also applies to essential goods like food, medicine, and energy.
  • The benefits of globalization, including lower prices and increased efficiency, outweigh the potential risks and drawbacks.
  • The US should focus on developing a more diversified and resilient supply chain, rather than relying on a single country or region for critical goods.