America – the new low cost producer ?

Forget India & China – they are seeing rising wage inflation. Their goods don’t seem to be as cheap as they once were.

The United States could be “new” low cost, high quality producer of the world?

With 10 million unemployed people, 2.2 more million in overflowing prisons, a low minimum hourly wage, factory capacity isn’t strained and large public U.S. companies have plenty of cash on their balance sheets (they also offer health care coverage) and they can borrow cheap money by selling bonds quite easily as they are more creditworthy than the U.S. Treasury !

It seems that many investors have given up on America and their corporations (large and small). American companies know how to admit their mistakes, take write-downs, cut costs and start again. In other words, they allow the fire to pass through so the forest can rejuvenate.

America may be a fertile investing habitat.