Quote:
Originally Posted by NewNick
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.
|
I am aware of all the talking points and cheerleading about how it should be.
However, it would've been a lot easier if our federal government had stepped in and taxed the hell out of imports. The Chinese government still pays their manufacturers 7 cents on each dollars worth of goods they export to the US. The government still subsidizes raw materials and energy costs as well.
As long as the playing field remains lopsided, American consumers will continue to buy from the lowest offerings. I don't blame consumers. But it's fairly clear why the economy spiraled downhill the way is has,