A couple of weeks ago, I noted that corporations were now beginning to think that China, with its rising prices and increasing wages (relatively speaking), wasn’t cheap enough. And, so, comes another report via Reuters:

The result is higher prices at U.S. stores like Wal-Mart and Target that have increasingly filled their shelves with Chinese-made goods. It may also mean thinner profit margins for a wide swathe of Corporate America, which for years looked to China to drive down costs. And it is beginning to spur a global treasure hunt for the world’s next low-cost factory.

   I added the bold. "Treasure hunt"? Does that seem macabre even for a business story? Let’s face it: the "treasure" corporations are looking for is human flesh, cheap human flesh, that can be turned into profits. Dunno about you but that gives me the creeps.

   Here is where this gets interesting:

But more recent data shows prices are rising inside the stores that have long prided themselves on lowering prices.

 

JPMorgan analysts conduct a monthly pricing survey at chains including Wal-Mart and Target. In May 2007, a basket of 23 identical goods cost $106.92 at Wal-Mart and $110.21 at Target. In May 2008, those same goods cost $108.79 at Wal-Mart, and $111.93 at Target.

 

Lena Michaud, a spokeswoman for Minneapolis-based Target, said the retailer was starting to see inflation on clothing and housewares it is buying for the second half of the year.

 

"In all cases, we will attempt to maintain our gross margin rate on affected items but of course the outcome depends on the market’s response to any cost increases," she said.

 

Uta Werner, retail sector analyst with Sanford Bernstein, said retailers were searching for other regions to replace China, but their profit margins would likely take a modest hit in the meantime.

  Ponder this. So, because the basket of goods for a consumer went up a grand total of $2, corporations have to search for cheaper labor.

  TWO DOLLARS? I wonder if we held a national referendum, what the results would be if posed this question: you have a choice–you can have cheaper goods but your wages will continue to decline, and so will the wages of virtually every worker around the world, you won’t have health care on the job, you won’t have pensions OR you will have to pay two dollars, and maybe a dollar or two more, total for the following items but, in return, we will establish standards around the world that require that everyone be paid a minimum living wage, that people have health care and decent working conditions. I’m going to guess the latter.