Too Much Outsourcing Caused the Mattell Recall Problem and Another Recall of Barbie Tomorrow

Mattel will announce another recall tomorrow of Chinese made toys this time the toys with high levels of lead will include the popular Barbie toy.

Why is this asking you may ask? The answer is simple. In an effort to keep down prices large companies laid off workers and moved their production over seas in an outsourcing move that was doomed from the start. Outsourcing on a large scale for consumption in the United States of America is doomed because the other countries in which the products are produced do not have the same level of safety checks and Government enforcement. This is the single reason why the products are cheaper to make overseas.

You truly get what you pay for. In an effort to keep costs down (and profits up) the big companies like Mattel outsourced their toy production while laying off United States of America workers (hurting the economy and inflation) and are now faced with shoddy products that have cost them billions in recalls and probably more in the eventual lawsuits and fines erasing all their profits.

Would Mattel have made more profit by not outsourcing their products? Maybe. But they sure as hell would have not destroyed their good name and customer confidence nearly as badly as if they had simply raised their prices 10%.

Here is a suggestion. Institute a working illegal immigrant work program where workers can temporarily work on United States soil under our supervision producing Mattel’s toys and we can run all the safety checks we want on our terms.

Being too cheap can cost you more in the long run.

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