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Old 04-23-2011, 08:12 AM
 
Location: The Republic of Texas
78,866 posts, read 46,581,607 times
Reputation: 18521

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If it cost more to make it here, then to build a factory overseas, or in Mexico, and ship it here, what is stopping companies from telling Americans, your fired?


Ford has a lot of manufacturing in Mexico.
GM is now building in China and shipping them here.

All the big Steel, up and went to China. Same American companies, same business name.
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Old 04-23-2011, 09:12 AM
 
13,002 posts, read 18,890,317 times
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Because for some products the US is the low cost producer. Some British wind power company moved production here due to lower costs. Agricultural products remain a huge export.
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Old 04-23-2011, 10:47 AM
 
Location: Texas
14,076 posts, read 20,517,411 times
Reputation: 7807
Cost isn't the only consideration, unless you're among those greedy bastid's who want one more penny's profit at whatever expense.

For instance, if every company sought out the lowest possible cost of production and moved off-shore, who here would be able to buy their product at any price? No jobs + no disposable income = no sales. Net loss.

And, there's the issue of tax revenue. If you lay off all your workers and hire Chinese instead, those laid off workers won't be paying income tax, yet government spending will go on. With no workers to pay taxes, guess who gets to pick up the slack, Mr. or Mrs. Businessperson? Net loss. Not only that, but more laid off workers means more demand for government "safety net" programs, which means even more taxes. More net loss.

Go ahead. Seek out the lowest common denominator and see what happens to your business.
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Old 04-23-2011, 10:50 AM
 
11,531 posts, read 10,284,243 times
Reputation: 3580
Quote:
Originally Posted by BentBow View Post
If it cost more to make it here, then to build a factory overseas, or in Mexico, and ship it here, what is stopping companies from telling Americans, your fired?


Ford has a lot of manufacturing in Mexico.
GM is now building in China and shipping them here.

All the big Steel, up and went to China. Same American companies, same business name.
Only 3 things can stop them from shipping oversees

1. Tariffs
2. Lowering American wages to 50 cents an hour
3. Increasing wages oversees
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Old 04-23-2011, 10:53 AM
 
1,233 posts, read 1,217,670 times
Reputation: 452
Quote:
Originally Posted by stillkit View Post
Cost isn't the only consideration, unless you're among those greedy bastid's who want one more penny's profit at whatever expense.

For instance, if every company sought out the lowest possible cost of production and moved off-shore, who here would be able to buy their product at any price? No jobs + no disposable income = no sales. Net loss.

And, there's the issue of tax revenue. If you lay off all your workers and hire Chinese instead, those laid off workers won't be paying income tax, yet government spending will go on. With no workers to pay taxes, guess who gets to pick up the slack, Mr. or Mrs. Businessperson? Net loss. Not only that, but more laid off workers means more demand for government "safety net" programs, which means even more taxes. More net loss.

Go ahead. Seek out the lowest common denominator and see what happens to your business.
Careful, you do not want to confuse people that already know everything.
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Old 04-23-2011, 11:06 AM
 
Location: Great State of Texas
86,052 posts, read 84,423,802 times
Reputation: 27720
Quote:
Originally Posted by stillkit View Post
Cost isn't the only consideration, unless you're among those greedy bastid's who want one more penny's profit at whatever expense.

For instance, if every company sought out the lowest possible cost of production and moved off-shore, who here would be able to buy their product at any price? No jobs + no disposable income = no sales. Net loss.

And, there's the issue of tax revenue. If you lay off all your workers and hire Chinese instead, those laid off workers won't be paying income tax, yet government spending will go on. With no workers to pay taxes, guess who gets to pick up the slack, Mr. or Mrs. Businessperson? Net loss. Not only that, but more laid off workers means more demand for government "safety net" programs, which means even more taxes. More net loss.

Go ahead. Seek out the lowest common denominator and see what happens to your business.
Service. Those broken exports need to be fixed.
Someone needs to hand you that burger and fries and take your money.
We are a consumer/service nation now..close to 85%.
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Old 04-23-2011, 11:30 AM
 
41,815 posts, read 51,008,283 times
Reputation: 17864
Quote:
Originally Posted by BentBow View Post
Ford has a lot of manufacturing in Mexico.
GM is now building in China and shipping them here.
Strange isn't it? American companies making cars overseas to import back into this country and foreign companies making them here. The big difference of course is the foreign auto plants don't have the unions and the legacy costs.
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Old 04-23-2011, 11:36 AM
 
Location: The Republic of Texas
78,866 posts, read 46,581,607 times
Reputation: 18521
Quote:
Originally Posted by thecoalman View Post
Strange isn't it? American companies making cars overseas to import back into this country and foreign companies making them here. The big difference of course is the foreign auto plants don't have the unions and the legacy costs.

Right there is the common denominator, in that by product of a Global Free Market.
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Old 04-23-2011, 11:40 AM
 
Location: By the sea, by the sea, by the beautiful sea
68,325 posts, read 54,330,205 times
Reputation: 40716
Quote:
Originally Posted by thecoalman View Post
Strange isn't it? American companies making cars overseas to import back into this country and foreign companies making them here. The big difference of course is the foreign auto plants don't have the unions and the legacy costs.
I'm sure that will come as a great surprise to members of the German Metal workers Union.

Another big difference is in places like Japan the average CEO/worker pay ratio is 16/1 while in the US it's 263/1.

And in places like Japan workers are treated as assets rather than the necessary evils bloated CEOs often treat them as in the US.

Last edited by burdell; 04-23-2011 at 11:49 AM..
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Old 04-23-2011, 11:43 AM
 
Location: Texas
14,076 posts, read 20,517,411 times
Reputation: 7807
Quote:
Originally Posted by thecoalman View Post
Strange isn't it? American companies making cars overseas to import back into this country and foreign companies making them here. The big difference of course is the foreign auto plants don't have the unions and the legacy costs.
How strange is this? I bought a foreign brand pickup because it's produced here, at a price I could afford. The domestic models, at about the same price, are produced in Mexico.

I spent my money to support American workers.
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