Posted on 08/07/2017 5:53:54 PM PDT by C19fan
For one thing, the places are shrinking because many of these industries are moving to other places in the U.S. I've cited an example here a number of times of a major plastics manufacturer not far from me that is in the final stages of closing down one of the largest industrial sites in the county.
The company is not "offshoring" anything. It's just an old plant that needs to be completely rebuilt anyway ... and rather than rebuild it they are consolidating five different plants around the U.S. into one giant new facility in Louisiana or Texas that they built for something like $1.2 billion.
Interestingly, one of the reasons the company chose the Gulf Coast site is that it offered something that they couldn't get around here: pipeline capacity. The industrial process they use involves some hazardous materials that were shipped into their local plant here on railroad tank cars. For safety and efficiency reasons they are moving to pipelines to transport those materials now ... and the local plant here is surrounded by towns filled with people who have been opposing every pipeline project on the books.
So when the time came for them to make a decision about the future of this plant, shutting it down was an easy decision to make.
What would industrial output be if we still had an electronics industry, a furniture industry, a textile industry, a replacement car parts industry, an air conditioning industry? I could go on and on.
Do you really think Americans would be buying more furniture, more electronics, more textiles, more car parts, and more air conditioners if we had those industries here?
This shows a complete lack of understanding of economics on your part. If the factories were still here then the factory workers would also be consumers, they would use services and this multiplier effect creates even more jobs. They would also pay taxes and the local small town goes on. THIS HOW AN INDUSTRIAL ECONOMY WORKS.
1. Could U.S. consumers even buy every air conditioner that the industry has the capacity to produce in a U.S. plant?
2. If I have a choice between buying an American-made air conditioner for $300 and a foreign-made one for $250, I'll buy the American-made one. But that means there's $50 less for me to spend on something else, doesn't it?
I'm sure the U.S. shoe industry doesn't rely on any "multiplier effect" from me ... because I just bought my first new pair of shoes in about seven years.
I'm sure the U.S. auto industry doesn't rely on any "multiplier effect" from me ... because I'm driving a truck that is more than 10 years old.
And I really hope that my $300 air conditioner lasts me 15-20 years ... because if it's just going to crap out after five years through a "designed obsolescence" strategy by the manufacturer to keep me coming back to buy more, then I might as well buy the foreign-made $250 model.
The "multiplier effect" you describe isn't the only thing involved here. In an industrial economy, there is an insatiable need for an ever-growing pile of new consumers to keep the industrial base functioning ... which is what drives our open-borders immigration policy. Are you an open-borders advocate now?
But that is not what is happening. I will give three examples. The Ford Focus, Oreo cookies and Carrier Air conditioners. The production of all of those were off shored to Mexico. All of those products cost exactly the same an they did when they were made in the USA. The difference in labor($3 in Mexico, $30 in the USA) saves about 3-5% of the cost of production and all of that difference goes to the bottom line not into consumer savings.
You’re an economic dunce. God save us from your type of small minded thinking.
Did it ever occur to you that they moved to Mexico for reasons other than lower labor costs?
Why don’t you sit there and post your resume so we can see where YOUR economic prowess comes from.
It's about labor. When asked the Carrier's CEO couldn't name one tax or regulation that was the cause of the move to Mexico. Dirt cheap 3rd world labor is like crack cocaine to these globalist CEO's.
But then again, I know better than to presume I know more about someone else's line of business than they do.
In 2013 the Focus was the top-selling car model in the world. Ford sold almost 1.1 million of them globally.
Of those, only 241,000 were sold in the U.S.
So why would you expect Ford to produce a certain car model in the U.S. when the U.S. only accounts for about 22% of its global sales for that model?
Is it possible that the location of a Ford Focus plant has more to do with the size of the customer base than the cost of the labor?
The cap should be zero!
They, the Maine gop, had better because there is a 100% right wing pro-Trump, ChristianPatriot running as a write in candidate.
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