U.S. Firms Keen to Add Foreign Jobs

Wall Street Journal ^ | November 22, 2011 | DAVID WESSEL

[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."

[federal__reserve]

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.

http://www1.macys.com/shop/product/skechers-shoes-westlee-leather-boots?ID=563735&cm_mmc=Google_Feed_pla_pe-_-adtype-pe-_-target-0-_-kw-women’s%20leather%20boots&ctype=2

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.

[DuncanWaring]

But the boots which look reasonably good and comfortable in your catalog are $175 and up.

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.

[federal__reserve]

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.

[DuncanWaring]

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.

[federal__reserve]

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.

[federal__reserve]

but tell me how much taxes GE paid last year.

GE escaped paying taxes by using tax incentives. Under the Cain's 9-9-9 plan GE could not escape paying taxes. If they sell their retail products here in US, their products would bear 9% sales tax. If they sell their retail products abroad and make them abroad, it is none of our business since they are then operating as a foreign outfit catering to foreign markets. Out of our control!

Also, under the 9-9-9 plan, GE would pay tax on gross sales minus materials & services purchased in US. If they have sales in US, they will pay tax. Currently they pay tax only on profits after tax deductions, which could be zero, and hence no tax.

The 9-9-9 plan would encourage GE to move production here because of the way it is set up.

[DuncanWaring]

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.

[federal__reserve]

You obviously are against free trade. I am for free+fair trade.

[DuncanWaring]

I am against wage and environmental arbitrage.

If that gives me an “Against Free Trade” badge, I’ll wear it with pride.