Monday, July 02, 2007

Karen DeCoster Will Buy Chinese Shrimp at WalMart Even If It KIlls Her

Karen DeCoster reckons that looking askance at Chinese products in view of recent safety concerns is just another Commie plot to impoverish us all. While I agree that the Chinese safety scares will be exploited by protectionists to push for legislation, and I disapprove of this as much as Karen does, but she seems to conflate private, voluntary consumer action with government intervention. Look at the two quotes she cites:

A:"Quality is one thing, safety is a different matter, and if we continue to hear this drumbeat of safety (problems), that could clearly impact consumers' perception of goods made in China," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.

B:"The Chinese better take heed and crack down hard (on faulty goods) now or they will be faced with anti-Chinese trade legislation soon," said Andrew Busch, global foreign-exchange strategist with BMO Capital Markets in Chicago..

The first quote is about consumers’ reaction qua consumers, whereas the second is about possible legislation. I don’t call for legislation, but I am damn sure not going to buy Chinese toothpaste, dog food, or any food item until I am satisfied that these products won’t kill me or my pets. I don’t reckon a commitment to free trade precludes me from acting in what I perceive to be my own interests. If Karen wants to nosh on toxic Chinese shrimp, that’s her choice, but doing so doesn’t make her a free trader. It just makes her a contrarian.

I don’t know how “capitalist” China has become. I suspect that its enterprises are part of a network of cronyism and corporatism. How else to explain the incentive system that permits management to risk killing their customers for short-term gain? Clearly, China wants a product liability system that gives incentives to consumers and lawyers to root out unsafe and unethical business practices like we have seen in China lately.

Another concern is that I can’t be sure that Chinese products haven’t been produced with slave labor, and I prefer not to participate in slavery. I will pay more for products made by free labor. As far as I’m concerned as a consumer, it’s up to Chinese manufacturers and vendors to satisfy me that their goods are not going to kill me or are not going to cause me to compromise my values. I don’t have anything against the Chinese people, mind you, but it would be irrational not to take recent events into account.

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