Quote:
Originally Posted by Minte
It's the catch 22 that our economy has fallen into.
China has a corporate tax rate of 25% compared to the current US rate of up to 39%. Factor in the labor rate in China and it's easy to see why jobs have left the US.
This is NOT Obama's fault. This started seriously during Clinton's administration and Bush didn't do a thing about it.
There is a lot of discussion about how to get jobs back, but until something is done about the huge disadvantage we have here in the US it will be a real challenge.
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Manufacturing output moving to China has nothing to do with Clinton, Bush, Obama, or the corp tax rate.
There is only one reason to manufacture in China and that is unit cost. Labour is the lions share of that saving, but factor in cheap land for factories, cheap utilities, zero health and safety, no unions, no employee rights, and a burgeoning middle class to buy your consumer goods, then you begin to understand China.
The idea that something should or could be done simply is not viable. Are you going to slash the salaries, employee rights, and living standards of the average voting american down to Chinese levels ?
Whether you like it or not all mature industrial nations have the same problem when a low cost manufacturer comes along. The answer is not to go down to meet them at their level, you have to raise your standards, you have to manufacture goods and services that are beyond their technical level. You have to move ahead and stay ahead. More R & D, and a better educated and skilled workforce producing goods that are advanced and superior. Going backwards is not the answer. Not in a democracy at least.
