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They have lower salaries but the COL in Mexico is 1/2 that of the COL in the US.
That is the typical answer, and I find it kind of mind blowing that most people leave it at that. Why is the cost of living lower? Why for example would a society with superior technology that saves time and effort be a higher cost?
The concern is global trade wars, and economic efficiency.
I had no answer to this until I heard Trump. When you are running $500B deficit every year a trade war is not such a bad thing to have. Besides, who should be afraid of the trade war? US or China/Mexico? Big companies can't run away to skirt our laws and leave small companies behind who can't relocate. 35% tax is pretty fair to level the playing field. Reminds of sales tax situation. Delaware next door does not have a sales tax. We do. If you buy a car in Delaware you save thousands but try to register it in PA and you have to pay 6% tax.
That is the typical answer, and I find it kind of mind blowing that most people leave it at that. Why is the cost of living lower? Why for example would a society with superior technology that saves time and effort be a higher cost?
The labor cost is too high.
You don't need "superior technology" to make AC parts.
I have posted before a site where you can find ALMOST anything you want for AMERICAN MADE PRODUCTS.
But the selection is nowhere near enough. Why do I have to search the deep, dark corners of the internet to buy American products. I tried once. Bought a US made blue jean and guess what. Didn't fit. What is wrong with wanting to walk down the aisles in Walmart and see, not 100%, but 50% items American made goods? It seems like some people don't even like the idea the way they dismiss it.
But the selection is nowhere near enough. Why do I have to search the deep, dark corners of the internet to buy American products. I tried once. Bought a US made blue jean and guess what. Didn't fit. What is wrong with wanting to walk down the aisles in Walmart and see, not 100%, but 50% items American made goods? It seems like some people don't even like the idea the way they dismiss it.
People want bang for the buck. Purchases are not made by 99% by waving a flag.
I had no answer to this until I heard Trump. When you are running $500B deficit every year a trade war is not such a bad thing to have. Besides, who should be afraid of the trade war? US or China/Mexico? Big companies can't run away to skirt our laws and leave small companies behind who can't relocate. 35% tax is pretty fair to level the playing field. Reminds of sales tax situation. Delaware next door does not have a sales tax. We do. If you buy a car in Delaware you save thousands but try to register it in PA and you have to pay 6% tax.
Thats not the great answer you think it is. It is the simple answer, but it misses efficiencies completely, misses the point that big companies CAN run away and skirt our laws, and misses that it wont "reduce" our trade deficit so much as reduce our purchases...AND our sales. Its not the great thing you think. However as I said at the start, I am torn. There ARE some good possibilities long term despite the pain. From a purely economical "whats best for everyone" the answer is-not a trade war. But...from a "whats good for US jobs, etc" its not as clear cut.
Overall I am inclined to think it would be a mistake, but I am open to someone convincing me wrong. Problem is that there are enough variables that I half suspect that......
The only way to know if it would be a good law would be to pass it.
I hope the irony of that sentence is not lost on people. Not trying to imply anything, just that as I typed it it felt awfully familiar. Made me laugh.
Thats not the great answer you think it is. It is the simple answer, but it misses efficiencies completely, misses the point that big companies CAN run away and skirt our laws, and misses that it wont "reduce" our trade deficit so much as reduce our purchases...AND our sales. Its not the great thing you think. However as I said at the start, I am torn. There ARE some good possibilities long term despite the pain. From a purely economical "whats best for everyone" the answer is-not a trade war. But...from a "whats good for US jobs, etc" its not as clear cut.
Overall I am inclined to think it would be a mistake, but I am open to someone convincing me wrong. Problem is that there are enough variables that I half suspect that......
The only way to know if it would be a good law would be to pass it.
I hope the irony of that sentence is not lost on people. Not trying to imply anything, just that as I typed it it felt awfully familiar. Made me laugh.
What laws are they "skirting" ?
We don't have any laws mandating that US companies stay in the US and hire US workers.
We don't have any laws mandating that US companies stay in the US and hire US workers.
Oh my. LOL. Theres tons of loopholes that companies use constantly to skirt laws, ranging from tiny 3 person companies who can sort of do it, to massive companies that can navigate laws with ease, and even have new ones written.
Please...tell me you said this just to have some sort of debate, because I've seen enough of your posts to believe that you know better. (and I mean that in a positive way). Companies skirt laws.
Edit to add-nevermind, I think we're discussing different topics there a bit. lets take it from what I think you were asking.
Same answer though. Tax evasion of various legalities occur, and they've taken to doing some fun things with intellectual property and foreign corporations thats fascinating.
Last edited by greywar; 02-29-2016 at 09:51 PM..
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