Skip to comments.Finding Lost Jobs
Posted on 07/13/2010 12:36:30 PM PDT by AccuracyAcademia
Finding Lost Jobs James F. Davis, July 13, 2010
One of the most exasperating things encountered in discussing government policies is a lack of understanding by many of what causes corporations to move their operations and jobs overseas. They generally do not do it for greed as the purveyors of class envy would like one to believe because it is a very costly and risky enterprise to move overseas.
They do it in most instances because our government has made so many cumbersome costly laws, regulations and taxes that drive up the corporation’s costs and selling price of their goods to us, the consumers, that they can no longer produce competitively.
If the USA-domiciled company does not move their operation overseas under these conditions, they go bankrupt. The jobs would be lost anyway in most instances.
The politicians, after having caused the exodus of companies (and jobs) with costly anti-business legislation, then give tax breaks to corporations to lure others into their state. For example, North Carolina has the highest corporate tax rate in the Southeast, so it gives 10-year-tax-free status to companies as an incentive to move there. The NC government would have the same result in new jobs and companies setting up there if their corporate and personal income tax rates were lower than neighboring Southeastern states.
When I heard a local state senator (John Snow) brag about how many jobs he brought into the state by giving tax breaks to selected companies like Dell Computer, I asked him if he thought it was moral and ethical to ask people making $10.00 an hour living in the mountains to pay the taxes of Dell Computer in the Research Triangle with people making over $50.00 an hour....
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American employers have found that far too many Americans “graduate” college and can’t read, write or do basic math. But they can recite all the evils of Western Civilization and tell you 100 reasons why Christianity and Judaism are wrong. Maybe their “A” in feminist studies isn’t so valuable at all in the workplace.
Also, the US government tells businesses what to do, just short of actually setting prices for them to charge. The government is a silent business partner which does no work, makes you do more work, takes no risk, invests no money in the business, and generally is a pain in the drain.
Every large company I know of considers the US to be a “high cost” place to do business. Compared, of course to China, India, Mexico, Czech Republic, Vietnam, or wherever. And there are no barriers to moving jobs anywhere in the world, it’s a business decision.
Federal minimum wage laws and other mandates establish a de-facto cost of doing business in the US. Because states are bound by these laws equally it’s difficult if not impossible to convince a company that some areas can be economically competitive. Abolishing the federal minimum wage would restore competitiveness and make it possible for some lower cost areas of the US to compete more effectively to keep jobs at home.
Slave labor is cheaper. It has nothing to do with greed. Nothing.
Note it doesn't say American company. That's like hiring a USA-domiciled illegal immigrant.