More on Inspection

I agree with nearly everything that David Leonhardt (A Lesson That Thomas Could Teach, New York Times, Business Day, June 20, 2007. C1, C8) says about the problems of outsourcing. The interface between the central firm and its suppliers does need to be managed and transaction costs do have to be incurred.

I disagree with his statement that "The government clearly needs to play a role here by inspecting more of the items coning into this country." No! The firms doing the importing should be responsible for inspecting the things that they bring into the country. If their inspections are non existent or failing then they should pay the penalty of being sued and be subject to penalties under consumer protection laws.

The executives of these companies RC2 and HIT should also be compelled to deal with my two-year old grandson who has just been deprived of his favorite Thomas Musical Caboose.

Sent to New York Times