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One of main reasons companies are moving everything off shore is supposedly to same cost of paying workers and other operational costs. The big question is how to get back a solid manufacturing base back in the US? There quite few possible solutions, like lower Corp Tax rates, and what not.
One big obstacle I see is need to pay Americans workers a lot due to high cost of living here in US. This is especially true states like CA and NY, where COL is super high. One thing that I keep on seeing is the COL just keep on going up in US, almost all the time. Housing/Food/Clothes/Car/Electronics price increases upward. This means workers need/want more money and thus companies tries to avoid paying higher wages by moving the job to cheaper country.
If the cost of living in US goes down and therefore works could be paid and live on less, would it attract back more manufacturing business? Few manufacturing business has move to low cost southern states, but still there is huge movement moving the jobs totally out of the US since it is still cheaper there. If the COL somehow decreases even more in Southern States, more business may choose to move their instead.
Its what I have been saying for a long, long time... Americans have been living above standards and yet you hear in the news and Americans complain they are living "worse" off then before... you eat out at restaurants more often, you drive better cars (and MORE of them), you live in larger houses, you eat a large variety of food and drinks, you party more often than ever before, your kids have cellphones and so do you.... how exactly are you "worse" off? Perhaps its because people want MORE and MORE and denying any of it makes them act like spoiled kids (and media hypes it) and yell out that they are "worse" off... they are their own problems... if you really wanted to return to how they live in the 1940's.. by all means... and see how well you have it today... unfortunately, they want more... and they think they deserve it cause they exist...
When I was recently trying to figure out how I could cut my monthly expenses, I realized that INSURANCE PREMIUMS are taking up about a third of my income! And I don't have any excessive policies -- just the basics. Car, home, medical/prescription, and a supplemental policy for cancer.
Car insurance is a killer because I live in a border state so the premiums reflect the "risk." But I resent paying for it because I don't even drive much. I'm disabled and manage to get out maybe once a week to go to the store or to church. But I can't NOT carry it and I can't register my car without proof of insurance. It's a racket.
I can just imagine how much manufacturers have to pay for all of the various insurances they are required to have for the company and the employees. It drives up the cost of doing business here exponentially.
Cost of living is not expensive in the U.S., except for housing in certain markets and that's being corrected real quick.
You want to see expensive cost of living - go to Europe and some areas of Asia.
Compared to where manufacturing is going to it is. I am talking about countries like India where all the IT is heading to. US definitely has much higher cost of living than these places.
Teatime,Is there any way you can shop around for a new policy?
I know some insurance carries give you a discount if you don't drive a lot.
Is there no way you can make a switch to public transportation and sell your car?
Does your city have a car share service?
I think a lot of cities are affordable, people just don't want to live there. Some people don't mind the high cost of living because they feel they get a lot in return.
I think if a good public transportation system was more widely available in more cities, you would see a good number of Americans switch to that instead of having cars. They wouldn't have to worry about car insurance, car payments, car repairs, or putting gas in their car. That right there saves a ton of money, which could be used in other areas.
I do agree with evilnewbie though. It seems a lot of people are just living beyond their means and just want more, more, and more.
There is no one single factor, but the blanket concept of COL is a good start.
The next several posters also make good points: Americans demand a lot of superfluous things, while other things like insurance, from certain points of view also a luxury, are forced upon everyone (a racket).
Either the US continues to carry these "luxury" costs but makes up for it through competitive production of goods, not only services, or we drop the luxuries and produce the basics at lower cost.
The current crisis has been a trigger towards some kind of adjustment, we just do not know what direction it will take or what the structure of the economy will look like in 2-5 years down the road.
Hold on tight, try to become more efficient, and ....
Its what I have been saying for a long, long time... Americans have been living above standards and yet you hear in the news and Americans complain they are living "worse" off then before... you eat out at restaurants more often, you drive better cars (and MORE of them), you live in larger houses, you eat a large variety of food and drinks, you party more often than ever before, your kids have cellphones and so do you.... how exactly are you "worse" off? Perhaps its because people want MORE and MORE and denying any of it makes them act like spoiled kids (and media hypes it) and yell out that they are "worse" off... they are their own problems... if you really wanted to return to how they live in the 1940's.. by all means... and see how well you have it today... unfortunately, they want more... and they think they deserve it cause they exist...
I totally agree with you but I believe that its because of this "wanting more attitude" that it has pushed us farther and allowed us as a society to constantly become more innovative and move farther technologically. American people for the most part are always wanting to improve their current lifestyle and this gives great opportunities to entrepreneurs who can deliver the goods and services to which these people think will better their current conditions.
I totally agree with you but I believe that its because of this "wanting more attitude" that it has pushed us farther and allowed us as a society to constantly become more innovative and move farther technologically. American people for the most part are always wanting to improve their current lifestyle and this gives great opportunities to entrepreneurs who can deliver the goods and services to which these people think will better their current conditions.
You have a valid point ... do not throw out the baby with the bath water ... but the US has entered too far into excess and corruption.
To be sure, the objective is to restore balance, not regress. But a lot of damage has been done, we'll see whether it is too late (or maybe we won't).
LiveToday,
I've shopped around and I did get a discount for not driving much. I've got every discount available on my policy. Paying for my son's policy is a burden but he's in college and working as much as he can to pay for all of his other living expenses. It's the least I can do for him and I get a much better rate than he would on his own but insuring a 20-year-old male is expensive, no matter how you slice it. I am sure looking forward to when he's out of college!
Public transportation isn't an option. I don't have the strength and energy to wait around for the bus to come back on its route after shopping or a doctor's appointment, plus haul around packages to a bus stop. Plus, if a doctor sends me over to a lab or the hospital for tests after my appointment, I'd have to wait around there for a bus to take me four or five blocks. It wouldn't make sense time-wise and it would be downright impossible for me to do physically.
But, anyhoo, this isn't about me or other individuals. I just used my own expenses as an example of how much we pay for insurances -- some of them now mandatory -- that other countries don't have. High insurance costs are driving doctors out of practice because they can't afford the escalating malpractice premiums. It affects just about every business, whether it's liability insurance, employee insurance benefits, workers comp. and unemployment insurance, etc. It's factored into the cost of doing business here and it's very pricey.
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Few manufacturing business has move to low cost southern states, but still there is huge movement moving the jobs totally out of the US since it is still cheaper there. If the COL somehow decreases even more in Southern States, more business may choose to move their instead.
