Benefits of Globalization

Bill Mann believes in globalization. He puts together a huge list of products he owns that were produced in foreign countries, then makes this excellent point.

I'm also a little staggered by the amount of clothing my family has from Gap, Banana Republic, and Old Navy. Of course, anyone who has young children can tell you just what a godsend Baby Gap can be. And there's a reason that Baby Gap can offer so many products at reasonable prices. Gap Stores understand what Adam Smith understood, and what politicians have yet to grasp: people naturally gravitate toward buying the same goods at the lowest price available.

If our government demanded that Gap produce most of its goods here in the U.S., it wouldn't mean any increase in U.S. jobs, because those items of clothing would go up in price, meaning that people would consume less of them. This would mean that there would be less need for the raw materials that go into them, and it would also mean that the additional money required to buy each piece of Gap clothing would necessarily be money that would not be spent buying something else in its place.

Very nice.