Topic: Manufacturing Costs

A comparison of Boeing 747 prices from 1970 to 2015 reveals a significant gap between government inflation data and real-world costs. While a 1970 list price of $24 million should equate to $146 million today according to the CPI, the actual selling price is approximately $357 million. This discrepancy suggests that official government inflation numbers are significantly understated.

The proposed TPP is compared to NAFTA, which led to the closure of US factories like Maytag in favor of Mexican labor. However, recent trends show some companies pulling back from offshoring due to quality control issues, such as Boeing's difficulties with the Dreamliner. The discussion emphasizes that while cost-benefit analysis drives these moves, the regulatory burden of the FDA and EPA often makes domestic manufacturing uncompetitive.