chinese medicine

We all know that there is no such thing as a free lunch but that hasn't kept us from trying to eat one. And the fact is that some people eat free while all others pay. The trick they use is quite simple. It is called credit. But it is a type of credit where no bill comes due. At least not to them or in their life-time. It is a trick as old as Chinese medicine.

Today's WSJ has an article about tainted ginger originating in China and sold in California. Given how much food California grows, you would wonder why we import basic items such as ginger and garlic.  The US imports 68.7 million pounds of unground ginger per year. 53.8 million pounds travels 8,000 miles from China to get here.  And the reason why is simple. Ginger from China can be had for $7 per 30 pound box. And it can be sold for $2-3 per pound in the store. Good deal? Ginger from Brazil, the second leading source costs as much as $35 per box.

And the same applies to garlic. If you live in California, you may be forgiven to think that garlic comes from Gilroy. But think again. The US is a net importer of garlic. And China is the primary source.

One reason Chinese goods are so cheap is that Chinese workers aren't paid as well. That is the part the Chinese suffer for. They have a lower standard of living and we take advantage of it. The second part is that the Chinese are not subject to the same strict regulations and inspections that apply here. And here is where things get a bit tricky.

Everyone is always up in arms about government regulation. Demonizing regulations and the government is a favorite US pass-time. We conveniently forget that we elect the government, and that we put regulations in place to protect ourselves and our children. We do not want cheap toxic pesticides on our food, lead paint on our toys, or unsafe devices. We want inspections and guarantees. We want to sue for damages when someone gets hurt. And we expect multi-million dollar payments for pain and suffering. All that adds to price of things produced here. And like all good capitalists we really want someone else to pay for it. We effectively put locals out of business and go shop elsewhere.

The third part of the China bill is shipping. Importing basic stuff such as ginger, garlic, children's toys, and gadgets burns tons of oil. But we still "gain" because the oil is cheap too. It is cheap as nobody pays for the pollution part. Or the inevitable oil spills that mess up our coastlines. These are separate issues after all. Or are they?

Next time you volunteer your valuable time to clean up coastlines think about that. If you paid a few extra dollars for your goodies, you could save yourself a ton of time. And the environment a ton of hardship.