Posted on 12/04/2014 10:28:07 AM PST by central_va
I believe I stated that labor costs in the US is not why our manufacturing base has been in decline. I expressed that point in multiple ways. Unfortunately, many people believe that it is and it’s misdirection.
As I said, the truth of the matter is that all western democracy’s are in decline at the same time. The decline correlates directly with government policy.
You cannot grow any economy with a declining birth rate below the replacement rate.
You cannot grow a economy with a growing government that grows faster than the general economy and that is also carrying a deficit.
You cannot grow a economy where the young find that getting dirty or that physically hard work is beneath them.
You cannot grow a economy when people do not need to work to have a roof over their heads, a large digital TV for entertainment and food to eat. Many people will not work with those circumstances and thus they are a drag on GDP.
My point was, and still is, that wages have zero to do with any of this.
That government policy over decades, does.
As far as off shoring, which has nothing to do with free trade, is concerned. Let me address that since you brought it up.
The costs that are off shored, are generally not directly related to manufacturing cost pie, but are overhead costs associated with some aspect of the business that are considered controllable costs and these costs come off the gross profits on the balance sheet. If you can shave 2-4 percent of a overhead cost, any company would do that without much argument. Overhead costs come off the profitability after you have managed to make your product or service competitive and they are generally value added services.
You have to control them, or simply not do the activity or service and these costs are not part of the labor costs of a product.
These are the activities our companies generally off shore, like customer service, and any other customer related costs associated with marketing or sales overhead expense.
You will not find these expenses in the cost of goods sold column on the balance sheet, so it helps a little if you understand business accounting.
As to manufacturing offshoring, like Apples phones, for example.
Various electronics firms have tried to make complicated or uncomplicated general consumer product here in the US since all the television manufacturers began building sets in Japan and other Asian countries in the 1960s.
We no longer have the willing labor force to do this work, and frankly those who want to cannot even read a tape measure or operate a machine control interface.
Unless the work is related to simple assembly line stuff (mostly done by women), we in the US just don’t have the skilled labor force to do much of this work.
Again....this relates back to my original argument about the welfare state.
/johnny
The Puffy Shirt!
A political leader gets elected and enacts laws. Rush does none of that. He runs his mouth for money.
There are few of them that are not in bed with the environmentalists or some other organization in their quest for power.
Rush is in business for the money, his sponsors pay him for selling their products, we do not have to buy their products but we do have to pay taxes on top of taxes and pay for regulations on top of regulations.
Like in my state, if you skip one year of license of your vehicle it costs you double the next year.
If you could not afford 80 dollars this year how are you going to afford twice that next year?
I have no problem with people like Limbaugh whether I agree with them or not.
Wow, what BS.
/johnny
Well.....
I speak from manufacturing experience in 4 different states..
My wife just retired from two decades in the financial aid department of a University.
I know what I am taking about.
Dan's Bake Sale. Classic.
One the other hand, you smell like a troll.
How much were you paying people that can’t read a tape measure? Come on dude get real. I could pay minimum wage in downtown Richmond(Holder’s people) and the person would be able to read a tape measure.
We did not pay them...We could not hire them.
The skilled labor force in the US is generally fully employed and has been.
Companies have done what they could to train but kids are not going into the Vo-tech system like they were. Keeping machines running is a real problem, and results in delays, lost customers, and eventual business closures or relocations to places that have them, (skilled or willing and able to learn) Like Mexico for example...
Interesting that those arguing that Rush DO something for them also expect Uncle Sam to DO something for them.
Yeah......lol....
Probably not, which is sad.
Protectionism from free trade is simply another use of government force to impose a desired social or economic outcome, which is just as bad when it's used for your pet purpose as it is when the liberals do so for theirs.
/soapbox
Reminds me of a commercial I saw several years ago.
There were two old duffers sitting in a truck...One says....”Too hot, too hot, too hot..”
Then it starts to rain...
The other says: “Too wet, too wet, too wet.”
So there have been no adverse social or economic changes due to out sourcing our manufacturing infrastructure? The simple mindedness of the free traders is astounding....
Don't know about arguing. I can't hear anything beyond the whining.
I have manufacturing experience in 3 States (all Rust Belt), and I concur. Moreover, at my current company, the hardest (new) workers are all Mexican. Yes, they are legal.
Yes.....and if you look into the sciences, you will find Asians and Indians..a few eastern Europeans as well.
It’s also notable, that few young are apprenticing in the skilled trades, even thought great effort has been made to draw them in.
I could not even get mu son to consider it. He saw what I did and determined it to be too hard....
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.