Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I think the hard pill to swallow is when the company is cutting back, letting people go and then the CEO gets a 10 million bonus for making it profitable.
Still remember when Lee Iacocca took over Chrysler... he agreed to work for $1 and bet his fortune in stock... said we sink or swim together...
This is the main problem with the current business climate. CEOs don't put their skin in the game when their golden parachutes and (on average) 12 million yearly pay while they reduce payroll "to stay afloat." At about 32K for the average worker wage, the company has to cut 375 jobs to equal their executive pay so in all likelihood they must go above 375 jobs to not have investors complain. If CEOs put their skin in the game like Lee Iacocca did back in the 1970s, perhaps people wouldn't resent "their corporate masters."
The other problem is the demand, right now we have a problem creating it because of wages. Wages have been stagnant since 2007 yet we saw prices go up much more than wages. Let's look at meats, beef products have skyrocketed this year, even butter is at $3.00 a pound now. Purchasing power is way down and there is little relief for this. You wont really see demand created when dollars are down on the whole. Maybe with a few loyal customers (look at Apple who launched the latest iPhone that shattered sales records) but not on the whole.
Movies for instance were down on a whole this summer compared to last year's despite Transformers: Age of Extinction and Guardians of the Galaxy making the most money and solid outings from Godzilla, Maleficent, The Amazing Spiderman 2, X-Men: Days of Future Past and Teenage Mutant Ninja Turtles. People were scared looking at the financial statements of studios and theaters because there weren't the typical blockbusters. I believe part is some people are thinking that besides Guardians (which was quirky enough to be different and not be the same stereotypical destruction, destruction, destruction blockbuster and being a Marvel Studios movie didn't hurt either.) The way I see it is that people (like me) are picking and chosing which movies they see in theaters rather than seeing them all. Out of the movies I mentioned, I only saw only 4 (Spiderman, Godzilla, X-Men and Guardians) and those were the 4 movies I saw in theaters this summer period.
Have another world war where the other industrialized nations of the world have their infrastructure flattened so we can be the sole manufacturing source for about 25-30 years.
.
As the wages from other countries goes higher and wages in America go lower,
then Companies will return to America.
America can not compete with other low wage countries.
The NAFT agreement opened the door for no jobs ! ! !
.
Eh. It is natural that jobs go to other areas to a point but it happened domestically the same way. NAFTA did not ruin things but frankly you have to have other areas of the planet develop. Development is natural.
Of course there is competition beyond just wages. You have to factor in fuel costs, contract laws, translation, foreign regulations, time and so forth. For a company to imply as if it wants to go somewhere else without any experts about this and not pay them would be quite foolish.
Eh. It is natural that jobs go to other areas to a point but it happened domestically the same way. NAFTA did not ruin things but frankly you have to have other areas of the planet develop. Development is natural.
Of course there is competition beyond just wages. You have to factor in fuel costs, contract laws, translation, foreign regulations, time and so forth. For a company to imply as if it wants to go somewhere else without any experts about this and not pay them would be quite foolish.
Ross Pero told America that NAFTA would ruin the job market back before it was signed.
That's all well fine and good but it didn't "ruin" America. The fact of the matter is Perot is a bit hypocritical at this point.
Perot made his millions and billions by renting out computers to companies that could not afford to buy them. But undercutting the competition he was able to change the whole marketplace.
Likewise he's also missing the fact that there is more to just labor as a function of business. As countries develop they want more so the taxes and regulations go up. Anyone can move something overseas under the idea of minimizing labor, that is the most controllable costs. But at the same time it MAXIMIZES the UNcontrollable costs. Foreign taxes, foreign regulation, time differences, fuel costs, foreign interest rates, language differences etc.
In 2000 the median wage for manufacturing in china was 50 cents an hour. Next year it might be $4.50. Then add in everything I mentioned and it adds up.
Ever hear of Dutch disease? Dutch disease - Wikipedia, the free encyclopedia
Basically a given product makes a currency rise in value. But at the same point that means that other products also go up but that prices them out of the market. This is why you don't see the middle east export that much more then oil.
We also have to understand that prices will continue to go down as more countries develop. Look at Mexico. Mexico per their constitution has just one oil company (Pemex). They also have one major phone company America Movil. So with that in mind as they allow for more development it will lead to more oil production and lower telecommunication costs. Allowing monopolies and protectionism hurts all consumers with higher prices and worse service. Does anyone honestly think that AT&T was working on the internet in the 70's and 80's? How about smartphones?
The other part is frankly that inventions replaced quite a bit of work. Who honestly hires someone to wash their own dishes, wash and dry their clothing or a personal typist? But we have dishwashers, clothes washers and driers and Siri
How many work with payphones when cell phones came out? How many music stores are needed with mp3's? How many book stores with kindles? How many movie stores with Youtube? There used to be a disk company out of Plymouth called Kao. Kao closure throws 200 out of work | CapeCodOnline.com
200 were let go 15 years ago...it was floppy disks. No one uses them anymore. Even cd's are kinda dying out with usb's being so much larger. Besides physical software in itself hardly exists. It's all content to download. Back in the day you needed a manufacturer, distributor and software producer. Now it's all software.
My smartphone is a camera, video camera, microphone, television, telephone, typewriter, game system, encyclopedia, alarm clock, translator, stereo, movie player, post office, map of the world and so on. My point being in that the demand for these other things drops and the businesses related to their manufacturing, distribution etc.
How many people develop photos these days? How many still use travel agents? How many newspapers are gone? How many radio stations that have not streamed yet? Who in their right mind wants to get a message out and not use the internet?
Movies for instance were down on a whole this summer compared to last year's despite Transformers: Age of Extinction and Guardians of the Galaxy making the most money and solid outings from Godzilla, Maleficent, The Amazing Spiderman 2, X-Men: Days of Future Past and Teenage Mutant Ninja Turtles. People were scared looking at the financial statements of studios and theaters because there weren't the typical blockbusters. I believe part is some people are thinking that besides Guardians (which was quirky enough to be different and not be the same stereotypical destruction, destruction, destruction blockbuster and being a Marvel Studios movie didn't hurt either.) The way I see it is that people (like me) are picking and chosing which movies they see in theaters rather than seeing them all. Out of the movies I mentioned, I only saw only 4 (Spiderman, Godzilla, X-Men and Guardians) and those were the 4 movies I saw in theaters this summer period.
If they remove all restrictions to adult content, as well as what kind of food/drinks can be served in cinemas, we will see ticket sales skyrocket.
If they remove all restrictions to adult content, as well as what kind of food/drinks can be served in cinemas, we will see ticket sales skyrocket.
I kind of disagree on one point, not on the other.
The adult content ban is based on the MMPA ratings (which was created to prevent government oversight fir "dirty films" after Fatty Arbuckle.) Most theaters only play R or lower unless there is Oscar buzz for the NC-17 movie. That is mainly because MOST NC-17 movies don't sell tickets.
The dine-in option at theaters is.making money for the theaters though. That and luxury theaters are going to be things to watch in the next few years. Imagine watching movies in a recliner at theaters rather than a traditional seat. These exist in some AMC theaters and coming to mite in the next few months. The only downside, a two dollar up charge. Add that to the fees for 3D and IMAX viewings and you'll be easily at $20/25 dollar tickets per person.
From a foreigners point of view, I have been working in manufacturing companies across Asia and currently stationed in Singapore, and the hard truth is, there is NO way US can compete in terms of labor cost, not in the next 5-10 years. Apart from China, many countries are vying being the next superpower. US can't be compacent.
Can the US competes with cost? Definitely not but there are other things to compromise.
US is a knowledge based economy. Design, innovation and future development are still many in the US. However, these jobs aren't labor intensive and only suitable for people with high level of skills.
For the govenrment:
I advise US to keep being the "mind" and the "trend setter" of the world's economy and technology but, US needs to be frugal inorder for people to cope up with high COL. For example, most places in the US are very car dependent. Heard from Columbia PM that a in developed country, rich people take public transportation. If this is being implemented across US, chances that COL gets reduced for every americans. US automotive industry can still produced high end brand for export/domestic consumption but it will also lessen the import which makes healthy and balanced trade. Currently, US has $40B(-) trade deficit, you import more than you export. China however gets a trade surplus of close to $500B(+).
Investing in renewable energies is the way to go. US should not rely on the conventional energy sources which expensive and harmful to the environment. I know that US is aggressive about this venture but i has to be readily available and cost friendly to the middle class. Another way to reduce the COL cost.
For american people:
Average americans should invest and ride on the growing economies of other countries through index funds. You think China and India will still grow in an unparalleled growth? Then by all means, invest in China and India. Americans should learn the ins and out of investments and make passive income out of it. Do you know that GOLD is a good buy nowadays?
Buying a house is more than just buying your head a roof, it is also an investment and it includes very high risk. Assess if it is good time to buy a house. You don't want to buy a house at $500K today which will only cost $300K next year.
Get rid of 3000sqt feet house with big yard. Master planned community doesn't need to be that big. Future master planned community are clusters of smart houses with sustainable energy and utilities with common play area for kids and residents. People needs interaction. It is cost efficient in the long run.
For american people:
Americans should learn the ins and out of investments and make passive income out of it. Do you know that GOLD is a good buy nowadays?
I would say that gold is a shaky investment loosing
so much in a year going up and down like a yoyo.
.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
China however gets a trade surplus of close to $500B(+). 
