Post by DADDY O on Mar 10, 2017 11:09:09 GMT
I define the outsourcing of jobs, or labor, as “When companies hire foreign workers in foreign nations to assemble and/or produce their products.” In 2013, we (the USA) employed 14 million laborers overseas. Consequently, these are jobs lost in the US and those jobs are gained in the countries that perform the work.
Many companies do this in order to be competitive……especially in a global economy. My wife used to work for Dell Computers, and her role at Dell was to set up and train foreign workers in call centers. They were mostly in the Philippines, Malaysia and Indonesia. These call centers were primarily linked to either sales or product repair/maintenance.
The IT industry is particularly hard hit, due to extreme competition and the need to be competitive with other IT companies. Thus, they outsource the vast majority of jobs from the US. The Auto Industry is perhaps the second largest outsource from the US. Although many of the parts might be manufactured in the US, most of the assembly work is outsourced. Mexico is our largest outsource market for automobiles.
So, why do these companies do this? To be competitive and make money. The labor costs are a minute fraction of the labor costs in the US, thus, their production costs are much smaller than in the US. I firmly believe that the Labor Unions in the Auto Industry in the US killed the vast number of jobs in Detroit, Flint and other “Iron Belt” states that produced Autos. When you pay the wages and benefits that Labor demanded, you effectively killed the jobs that went along with it. When Honda and other foreign auto products came into the US, the end of US assembly and production was a fore gone conclusion.
So how do we get these jobs back? The truthful answer is “We Don’t”. The one thing that Obama learned very well in the early stages of his administration……….and he learned this from the IT king of the world, “Bill Gates” is……… these jobs are lost forever. They are not coming back. Get over it. When I read this in one of Obama’s books, it made very good sense to me, after all, and in my country, government should not be controlling private industry.
So let’s shift forward 10 years to the current administration. In order to bring jobs back to the US, Trump campaigned on levying an importation tax of 30% on products from American companies that were either manufactured or assembled in foreign countries, and then brought back to the USA. Seriously? does anyone think this will bring jobs back to the US? How in the world does Donald Trump call himself a business man when he expunges baloney like this? What do you think the US companies would do if they had to pay a 30% importation tax to get their product into the US? This is really a no brainer here…..wouldn’t they raise the cost of their product by at least 30% (if not more to cover admin costs)? Sure they would. So instead of having a Ford Fusion that would cost around $23,000, we would have a Ford Fusion that would cost $31,000. When this happens, the vast majority of buyers go back to Honda, KIA, and other foreign manufacturers to purchase cars. Then guess what happens to the American auto industry? You got it……………tits up....jobs lost yet again.
And this does not matter if it occurs in the US, or Australia, Canada or Great Britain. The cause and effect is the same.
Government should not be allowed to affect in any form or fashion, private business……..unless…..they want to put up the capital to fund the business. If so, imagine what our debt would be then.................and the costs?
Many companies do this in order to be competitive……especially in a global economy. My wife used to work for Dell Computers, and her role at Dell was to set up and train foreign workers in call centers. They were mostly in the Philippines, Malaysia and Indonesia. These call centers were primarily linked to either sales or product repair/maintenance.
The IT industry is particularly hard hit, due to extreme competition and the need to be competitive with other IT companies. Thus, they outsource the vast majority of jobs from the US. The Auto Industry is perhaps the second largest outsource from the US. Although many of the parts might be manufactured in the US, most of the assembly work is outsourced. Mexico is our largest outsource market for automobiles.
So, why do these companies do this? To be competitive and make money. The labor costs are a minute fraction of the labor costs in the US, thus, their production costs are much smaller than in the US. I firmly believe that the Labor Unions in the Auto Industry in the US killed the vast number of jobs in Detroit, Flint and other “Iron Belt” states that produced Autos. When you pay the wages and benefits that Labor demanded, you effectively killed the jobs that went along with it. When Honda and other foreign auto products came into the US, the end of US assembly and production was a fore gone conclusion.
So how do we get these jobs back? The truthful answer is “We Don’t”. The one thing that Obama learned very well in the early stages of his administration……….and he learned this from the IT king of the world, “Bill Gates” is……… these jobs are lost forever. They are not coming back. Get over it. When I read this in one of Obama’s books, it made very good sense to me, after all, and in my country, government should not be controlling private industry.
So let’s shift forward 10 years to the current administration. In order to bring jobs back to the US, Trump campaigned on levying an importation tax of 30% on products from American companies that were either manufactured or assembled in foreign countries, and then brought back to the USA. Seriously? does anyone think this will bring jobs back to the US? How in the world does Donald Trump call himself a business man when he expunges baloney like this? What do you think the US companies would do if they had to pay a 30% importation tax to get their product into the US? This is really a no brainer here…..wouldn’t they raise the cost of their product by at least 30% (if not more to cover admin costs)? Sure they would. So instead of having a Ford Fusion that would cost around $23,000, we would have a Ford Fusion that would cost $31,000. When this happens, the vast majority of buyers go back to Honda, KIA, and other foreign manufacturers to purchase cars. Then guess what happens to the American auto industry? You got it……………tits up....jobs lost yet again.
And this does not matter if it occurs in the US, or Australia, Canada or Great Britain. The cause and effect is the same.
Government should not be allowed to affect in any form or fashion, private business……..unless…..they want to put up the capital to fund the business. If so, imagine what our debt would be then.................and the costs?
