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Companies are run by people. Management and major shareholders.
People in the management positions are more likely to be unscrupulous and concentrate on managing their careers (I am not saying this because I don't like executives, just a personal observation after 20+years in the business).
They are not dumb. They often understand that saving 20-30% in labor costs may down the road result in eroded profits due to quality issues. However, they rarely stay in the same position for more than 3-5 years. Saving 20-30% in costs will earn them bonuses right now, increase company performance short term making major shareholders happy, they can claim on their resume that they saved company millions and are a hot commodity, and by the time you-know-what starts to really hit the fan, they'd be long gone and it will be someone else's problem.
Another excellent post
We used to have a consumer driven economy with high quality products.
In that time frame, Corporate and Banking influence in our government was very low as well.
Now we have a shareholder driven economy because Corporations and Banks conquered our government to serve them over the bests interests of this nation. And that is where you get trade pacts with slave labor nations.
How Corporate Lobbyists Conquered American Democracy
Quote:
It has also fundamentally changed how corporations interact with government—rather than trying to keep government out of its business (as they did for a long time), companies are now increasingly bringing government in as a partner, looking to see what the country can do for them.
Corporate and Banking Lobbyists need to be thrown out of the government
We need our own Brexit where the people put an end to unfair trade agreements that pit us against slave labor so shareholders can make more to stuff in their portfolios.
Things like the resurgence of the TPP, China Trade, NAFTA and so on need to be killed
Our country comes first over globalists wallets
The American employee is becoming too expensive. We cost too much.
And yet, Germany, among other advanced countries, manages to keep its people employed with decent benefit packages. They specialize in high-precision machinery for export, but they also manage to keep the workers in pencil factories paid at a decent standard of living and with amazing vacation time allowances.
We're not too expensive, the US simply has other priorities, and Congress is perfectly ok with adding to the ranks of the unemployed by facilitating outsourcing through laws and by allowing abuse of the H1b visa system. No other developed country is that stupid and self-destructive.
Last edited by Ruth4Truth; 06-26-2016 at 02:06 PM..
And yet, Germany, among other advanced countries, manages to keep its people employed with decent benefit packages. They specialize in high-precision machinery for export, but they also manage to keep the workers in pencil factories paid at a decent standard of living and with amazing vacation time allowances.
We're not too expensive, the US simply has other priorities, and Congress is perfectly ok with adding to the ranks of the unemployed by facilitating outsourcing through laws and by allowing abuse of the H1b visa system. No other developed country is that stupid and self-destructive.
I know a lot of IT workers in Germany and they complain they are way underpaid Compared to IT workers elsewhere and they are forced to subsidize others. I have no idea, but I do know the complaint has been consistent since I first started working with them in 2001(also how small their apartments and how dismal the overall quality off life it etc,) they seem to love it over here and lobby to get visa to come back time and again.
The American employee is becoming too expensive. We cost too much.
When products cost too much, what happens? You look for alternatives... cheaper products... more efficient methods... maybe you just go without the products.
More and more business owners are looking for alternatives to the American employee. What are the alternatives?
paying illegal immigrants under the table
operating in countries where the labor and tax rates are cheaper
more automation to perform job tasks
they shove more work on less employees
they use temp agencies for their labor pool
simply reduce the workforce
How have we overpriced ourselves?
increasing the minimum wages
attaching a full suite of benefits for full time employment
401K plans help manage our savings (instead of doing it ourselves)
having the employer share the tax burden of the employees
I think we need to change the requirements on employment if we want more people working. We are too expensive. We have to bring the cost of employment down, otherwise it will continue to get worse.
So the US is supposed to compete with third world countries on price?
Yeah, that might work if cost of living was third world level low, but you aren't seriously expecting Americans to work for third world wages while needing to pay to live in the first world, are you?
Why are only Americans supposed to agree to this horrid deal? Why can other developed countries manage to have a low unemployment rate while most workers have living wages and strong benefits and social safety nets?
We don't cost too much in cash wages - wages are not all that high. We cost too much in overpriced benefits, taxes, the cost of complying with a million and a half pages of regulations, lawsuits, and featherbedding employees who are protected by unions.
Location: Mableton, GA USA (NW Atlanta suburb, 4 miles OTP)
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Quote:
Originally Posted by ohhwanderlust
So the US is supposed to compete with third world countries on price?
Yeah, that might work if cost of living was third world level low, but you aren't seriously expecting Americans to work for third world wages while needing to pay to live in the first world, are you?
Why are only Americans supposed to agree to this horrid deal? Why can other developed countries manage to have a low unemployment rate while most workers have living wages and strong benefits and social safety nets?
Because only Americans have to settle for a healthcare industry managed by for-profit corporations, and the US seems to have a particularly strong subset of people who believe that "only those who pull themselves up by their own bootstraps deserve a living wage".
Ironic some many of those folks were born into wealth.
We don't cost too much in cash wages - wages are not all that high. We cost too much in overpriced benefits, taxes, the cost of complying with a million and a half pages of regulations, lawsuits, and featherbedding employees who are protected by unions.
Not to mention the "business unions" like the National Association Of Manufacturers who have made quite a "feather bed " for themselves while the public picks up the cost. All that regulation serves those who seek to squelch the competition from small business that can't compete due to those added costs, if you hadn't noticed, the large enterprise model seems to be working just fine, regulations and all...Control of government equals control over one's competition.
So the US is supposed to compete with third world countries on price?
Yeah, that might work if cost of living was third world level low, but you aren't seriously expecting Americans to work for third world wages while needing to pay to live in the first world, are you?
Why are only Americans supposed to agree to this horrid deal? Why can other developed countries manage to have a low unemployment rate while most workers have living wages and strong benefits and social safety nets?
Yes, the proponents of globalism really are expecting the world's labor force to become flattened out to the extent that the impoverishment of the populace implodes into a collapse of those gains from cheap labor. At one time we had the aristocracy on top and the majority on the bottom, globalism, as a labor paradigm exists on the residual of that economic construct. The nations that have the lowest labor rates are nothing more than a rag tag of left over colonialism and failed aristocracies.
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