Tuesday, June 24, 2008

Reverse Globalization

"Oil Price Fallout: Jobs Coming Home?"

"It's not just about labor costs anymore," says Rubin. "Distance costs money, and when you have to shift iron ore from Brazil to China and then ship it back to Pittsburgh, Pittsburgh is looking pretty good at 40 bucks an hour."


This is a good story. I hope that this trend continues. Globalization really doesn't make any sense for most of us.

I always wondered why most of the orange juice one could get in Florida came from California and why most of the orange juice available in California came from Florida. I guess when oil is cheap enough there is plenty of competition even from sellers all the way across the country. Cheap oil makes transportation nearly frictionless when it shouldn't be.

Now it's going to make more sense to buy local. As it should be.