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Are you saying that the economy has improved under the current administration? Have you just now sobered up from a long drunk?
The Hope-and-Changer claimed that the average 5-6% unemployment rate under Bush would be lowered when he became President. It looks like it is above 9%. How many years does he get to blame Bush for everything?
Obama has been an unmitigated DISASTER to the U.S. economy. That some businesses are now moving back shows how low he has brought U.S.
Don't get to excited, while the "work" may be coming back it doesn't neccesarily mean JOBS.
By the way the unemployment rate at the end of the Bush administration was 7.8%.
Yes, it averaged 5-6% for the bulk of Bush's administration and then, after the November election of 2008, and it was clear that Socialism was headed to the White House, companies began laying people off knowing full well what was coming.
I suspect the reverse will happen when it is clear that Socialism will be replaced by someone with business sense, and companies will breath a collective sigh of relief and begin hiring once again.
But, hey, I understand that some of the 13% of people who still support Socialism use city-data forums.
Jobs will come back when wages have been so depressed to the point of where it will be more cost effective to hire an American. It's definitely happening:
If we ever had total rule by the GOP, unions may be outlawed, and the minimum wage may be repealed. Once that happens, expect the average worker to be paid $2 an hour.
That is just a drop in the bucket.....and in reality, sadly won't make any difference. But kudos to them for coming back home.
Actually, more so than you think. Costs to manufacture in places such as China have risen quite a bit in the past few years.
Case in point? I'm going through strategic planning for a large furniture manufacturer. For a while, they toyed with manufacturing overseas to the point that roughly 35% of their product was made in China. However, they've found that there's no real advantage to doing so for two reasons:
1) QC.
2) Long lead times in delivery. Unless a manufacturing is willing to commit to hundreds of thousands of square feet of warehouse space simply to accommodate any possible order, then the fastest delivery time to container ship from China is 13 weeks.
Add to that the incredible bureaucracy, the somewhat arbitrary public officials, and the language barriers, and the uncertain currency issues, it's becoming more difficult to manufacture in China, not less.
Actually, more so than you think. Costs to manufacture in places such as China have risen quite a bit in the past few years.
Case in point? I'm going through strategic planning for a large furniture manufacturer. For a while, they toyed with manufacturing overseas to the point that roughly 35% of their product was made in China. However, they've found that there's no real advantage to doing so for two reasons:
1) QC.
2) Long lead times in delivery. Unless a manufacturing is willing to commit to hundreds of thousands of square feet of warehouse space simply to accommodate any possible order, then the fastest delivery time to container ship from China is 13 weeks.
Add to that the incredible bureaucracy, the somewhat arbitrary public officials, and the language barriers, and the uncertain currency issues, it's becoming more difficult to manufacture in China, not less.
A lot of the problems you mention have always been there. The currency and wage issues are growing, but there has always been challenges with outsourcing. I think a lot of it was done as an experiment. Also as a kick in the pants to the working class... You know, show teach them not to bite the hand that feeds.
A lot of the problems you mention have always been there. The currency and wage issues are growing, but there has always been challenges with outsourcing. I think a lot of it was done as an experiment. Also as a kick in the pants to the working class... You know, show teach them not to bite the hand that feeds.
As well it should be.
As we get older, we are faced with a choice: get bitter or get better. You don't have to look far to find the bitter ones. But when someone gives you a job, and pays you money to do something, what is so wrong about them expecting good performance with a good attitude?
The unions, on the other hand, have outlived their usefulness. Sure, back when the USA had sweatshops, and Pinkertons, and Robber Barons, the workers needed a collective to protect their health and safety interests in the workplace. That function has long since been accomplished. OSHA and a host of government clipboard-holders ensure that there is safety in the workplace, but it should never be government's role to dictate wages.
Labor is a business cost, just like raw material, and for business to be effective it needs to be able to compete for labor just like it does with materials and services.
Yes, wages have stagnated in the USA and for good reasons. If we had protected our industries in the past from competition (TV sets, clothing, shoes, kitchen appliances, cars) we probably could have factory workers now making over US$200,000 per year in their union jobs, and then turning around and paying $65,000 for a poorly-made TV set.
We will see more US companies either keep their manufacturing in the USA or move back. Wages in China and India (and elsewhere) will continue to rise as they develop a middle class and begin to shift more income from exporting to domestic consumption. This will have many implications; for example, the US, with 6% of the world's population, will no longer be able to consume 25% of the world's oil. But the masses of Asia will aspire to own those American brands that have cachet.
Well said, Teak, and as corps are all global now, we will see them producing in Asia for Asian markets, and in the America(s) for the American markets, to an increasing degree. With Asians adding tens of millions of vehicles annually, plus more industry, fossil fuel costs should continue to rise, which will increase the cost of the 40' container, in addition to Just in Time issues sourcing from far away. All of that plays against the old "Make it in Asia, sell it here" except for stuff with disproportinate labor content relative to revenue, like textiles, clothes, and toys.
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