Skip to comments.U.S. Firms Keen to Add Foreign Jobs
Posted on 11/22/2011 10:36:04 PM PST by WilliamIII
U.S.-based multinational corporations added 1.5 million workers to their payrolls in Asia and the Pacific region during the 2000s, and 477,500 workers in Latin America, while cutting payrolls at home by 864,000, the Commerce Department reported.
The faster growth abroad was concentrated in emerging markets, such as China, Brazil, India and Eastern Europe, according to economists Kevin Barefoot and Raymond Mataloni, of the U.S. Commerce Department.
"Judging by the destination of sales by affiliates in those countries," the economists wrote in a recent survey, "the goal of the U.S. multinational corporations' expanded production was to primarily sell to local customers rather than to reduce their labor costs for goods and services destined for sale in the U.S., Western Europe and other high-income countries."
(Excerpt) Read more at online.wsj.com ...
Reduce 2nd highest corporate taxes, reduce burdensome regulations and paperwork, get rid of unions. All these
conditions are favorable in Asia to corporations.
He absolutely WAS correct.
Georgia has been the textile industry hub of the world for centuries, nearly every last factory is in Brazil now.
Now to hear some Freepers, and Neal Boortz and even Rush sometimes... we are all supposed to be too good and smart as Americans for labor jobs. But that is just not the case. First of all, many would have to HAVE a labor job to put ourselves through college. Secondly, not everyone can manage the intellectual part of it. Sorry, but there are just some under-intellegent folks and they deserve to eat too.
The government has destroyed this country with this globalist crap. I don’t care how cheap a product is, if you can’t afford it, it’s worthless.
Sick of hearing about corporate tax rate. It’s a meme that people are repeating like parrots.
That might have been the case a few years back, but tell me how much taxes GE paid last year.
And then tell me how they still moved a factory to China.
GE got tax credits for moving the factory to China.
Exactly my point!
I hear “Lower corporate tax rate to encourage them to want to stay here” and we even GIVE them money (in the form of tax credits) and they don’t stay.
All it’s doing is giving them more profit because they get the tax break and STILL get slave labor.
I’m telling you, conservatives have GOT to get over the mantra that has been spouted for years. Globalism is not capitalism.
I probably wasn’t clear, but I mean we have to change the tax system because of all the “multi-national trade” crap that ENCOURAGES businesses to move there to get us cheap (and cheaply made) crap.
SOMETHING has got to be fixed and it isn’t that we are over charging corporations in taxes.
We gave them money in order to encourage them to move the jobs off shore.
Globalism is wealth redistribution.
Something has to be fixed AND the corporate tax rates need to be reduced. There is a LOT of money overseas which will never come back because of the corporate tax rate.
They are keeping the corporate tax rate high in order to prevent the money from returning. Wealth redistribution.
The $1 dollar an hour labor seems to be a big incentive for off-shoring, regardless of what our tax rates and paperwork burdens are in this country. Americans can compete with China by lowering our pay rates by 90 percent.
Either that, or maybe some active laws to punish off-shoring. The Republican Party once believed in protecting and growing American industry. That was Lincoln’s position, Teddy Roosevelt’s — even Reagan’s to a signifant degree. Is our current free trade ideology — at least when it extends to the off-shoring of American jobs — destroying the economy? The question needs to be asked.
Straight labor rates are hardly the only factor.
Unions are already gone in the US private sector. You ignore the poverty wages in Asia that we have to compete against. This isn’t free trade, it’s transfer of good-paying American jobs to countries where people work for nothing.
The cost of labor is the overwhelmingly major cost of any organization.
Well said. Those that claim tax rates cause our unemployment are unable to answer that our tax rates are the lowest in at least 50 years but our unemployment is the highest. Job exporting companies have put money before country.
If you only look at the hourly rate when determining cost then you are missing the boat.
I run a business and know a little bit about what labor and projects cost me.
“Those that claim tax rates cause our unemployment are unable to answer that our tax rates are the lowest in at least 50 years”
Our corporate tax rates are the highest. Personal income taxes are lower than some periods and much higher than other periods.
Companies and the govt work hand in hand. The govt is doing what the large companies lobby for.
If we go to protectionism, those 91% of people with jobs (9% unemployment) will experience a much lower standard of living. How would you like to pay $199.95 for a pair of sneakers and $89.99 for a cotton shirt sewn in NYC? I would’nt.
We have to face the reality of the world market, world wages and world prices. The monopoly we had after WWII is gone for good. Then the manufacturing giants of the time, Germany & Japan lay in bombed out ruins. While our factories were untouched. Those glory days are history.
But I am not hopeless for the future of our country. I have lived and worked in 3 different countries, and traveled to dozens. Nowhere have seen anything which compares with innovativeness of Americans. We will do just fine if the tax rates for corporations will be reduced from 2nd highest in the world down to 10-15% range. And the burdensome regulations need to be removed from our corporations. We work harder than most. We have one language versus 17 in EU and 13 in India. We have a free democratic system versus autocracy and central planning in China. China’s real estate bubble makes ours look like a Sunday picnic.
“How would you like to pay $199.95 for a pair of sneakers and $89.99 for a cotton shirt sewn in NYC? I wouldnt.”
The percentage of Americans who have jobs is far fewer than the 91 percent you claim. The feds are camoflaging the true level of unemployment.
See, eg: Fake Unemployment And Inflation Figures Sustain The Illusion Of An Economic Recovery
If only 9 percent of Americans are unemployed, why do I know so many people who don’t have jobs?
I do wonder about the multi-national corporations which are so powerful. Just because they support something, that doesn’t make it good policy. They are among the strongest supporters of open borders, for example.
The support socialized medicine hardcore too. It’s way cheaper to hand that off to x government and therefore to the lower class tax payers than pay it themselves.
Because the real unemployment rate is above 22%.
Union participation in the private sector is at an all time low, less than 7% of the labor force.
That depends, in the service sector labor costs are the lions share. In manufacturing the cost of labor averages only 10%. On a macro economic scale the percent of GDP that goes to wages is only 50% (approx.)
That is such crap. This is the BS Free Traitors have been pedaling for years. The cost of labor in manufacturing is around 10%. So even if the shoes or whatever are made in the USA the MOST the price would go up is around 10% - AT THE MOST.
Good point. The Fortune 500 generally support open borders, but that doesn’t mean that Freepers have to salute these folks in the name of Capitalism. The same should go with off-shoring. Just because the big businesses like it, doesn’t mean I have to.
I thought Ross Perot was kooky when he ran for president (and elected Bill Clinton). But in my dotage I’m starting to see wisdom in his warnings about off-shoring. How is our unemployment ever going to go down if we accept the idea that America should let the rest of the world make our products.
So only around 50% of the populace is really employed in a fashion not rooted in taxpayer funding for the feeding cycle.
It’s not the government or any particular political party—all controlled by certain influential constituents, whose hopes are in those glamorous foreign countries.
You are contradicting yourself. If labor is only 10% why is cheap foreign labor a problem in the first place? Chinese shoes should cost only 10% less according to your theory.
Your post is Clintonian. We are discussing protectionism and it’s effect on cost of retail goods. The official unemployment figures is entirely another subject.
It does not matter what the true unemployment is because even the unemployed get checks from the government. And even they will find they can’t afford stuff made in USA.
Yeah, that is odd. :’) The rate is more like 14%, or about half again what the official figure is; the higher, actual figure includes those who have decided that living on public assistance and/or living *with* someone on public assistance, and/or working cash-only off-the-books odd jobs while waiting for their SSI or SSD to kick in is much better than full-time employment.
Around here, I’d hate to think of what the level of unemployment must be. And the number of people with “food stamps” (called the Bridge Card here in Michigan, it’s the EBT low-fraud version of the fraud-replete food stamps of yesteryear) would surprise most people, even people who live here. But OTOH, most of the people I work with are working on degrees (not in anything productive, but still), and a good number of them work more than one job, which is what I should be doing, although that could take a job away from someone who doesn’t have one.
This isn't theory it is fact. Labor is only 10% of the retail price on average of manufactured goods. Do your own research. All of this off-shoring is to "save" pennies on the dollar.
Planet "Free Trade" is a bizarre place, you must be its President/Leader.
So if China has less than 10% advantage in labor costs, and they have to pay the shipping freight on top of that, we should have no problem manufacturing everything here?
Manufacturing here in the USA is never a problem. There is no instance of a failing manufacturer , one that was approaching bankruptcy, and moved their production to China thereby saving the company. The reality is already profitable companies moved overseas to make a few more pennies on the dollar and left the taxpayer with the bill, to pay for the social welfare costs.
You sound like the people who claim "If we send the illegal aliens home lettuce will cost $5 per head".
I tried to buy American made shoes. Can’t afford them.
But why believe me, go to your friendly shoe store and look
for yourself. Then post me a note on brand & price, TIA.
Here’s a whole flock of BOOTS for under the $199 you conjecture for SNEAKERS:
Fifty years ago I generally wore Chippewa hiking boots that cost the equivalent of 200 gallons of gasoline.
These boots are generally a quarter of that.
I have never owned boots. It is either good sneakers or leather dress shoes. But the boots which look reasonably good and comfortable in your catalog are $175 and up.
I can buy a more comfortable looking and more attractive (in my eyes) imported pair of boots for $75.
The sneakers are great for every day running around, and are so comfortable. Every Nike pair I own is made somewhere else. So are my golf shoes. My dress shoes are made in Italy. Just bought a pair of very warm slippers with fur lining and suede leather exterior, made in China, of course, for 20 bucks.
Again, let us not get away from the main point...which is for items which require low tech manufacturing is much cheaper to import. Free trade is the way to go, so long as it is fair trade.
Yep, they are.
But, you buy those and you get a lot more footwear than you do if you buy sneakers ... which you said would cost $200.
If you want to subsidize slave labor and massive poisoning, that doesn't speak highly of you.
We should not, as a nation, be willing to put up with the wage and environmental arbitrage that is a natural by-product of what constitutes "free trade" in the modern era.
Just imagine if every country decided to make their own watches in the 20th century. You would have a very difficult time matching Swiss made mechanical watches.
Many countries are good at making something, because of various factors. Climate, labor cost, material cost, labor skills, shipping facilities, taxes, etc all enter in the picture.
It is more efficient to specialize in products you make best instead of trying to make everything. US has the advantage in aircraft, pharmaceuticals, business software, medical devices, weapons, etc. I would leave shoe making & shirt making to other countries.
The Swiss exported a lot of watches because they were good at making watches; not because their watches were dirt-cheap, manufactured by slaves living in poisonous filth.
You are missing the point again. The Swiss were exporting watches because they were the best at it. No one could make better watches at lower price.
Unless we can make better shoes at lower cost it is economically stupid to make shoes here.
You really need to go back and brush up on Econ 101.
I ain’t missing any point. Reread my post, you’ll see I said the Swiss made the best watches.
I know all I need to know about Econ 101.
We don’t need to be importing stuff made by slave labor in a horrendously poisoned environment, tariff-free, under the umbrella of “free-trade”.
You probably also agreed with Bill Clinton when he said we should let the rest of the world grow all our food, because that was low-skill, menial labor, and we would stick with the intellectually-enlightened stuff.
You obviously are against free trade. I am for free+fair trade.
I am against wage and environmental arbitrage.
If that gives me an “Against Free Trade” badge, I’ll wear it with pride.