Because labor is cheaper, and the US has the highest corporate income tax in the world...35%
We also have the best market in the world. Access is worth a premium.
The Unions ... protected by the democRAT party ... and Government corporate taxes are the CULPRIT! Any conservative POTUS candidate should condemn these in order to bring more jobs.
“Because labor is cheaper, and the US has the highest corporate income tax in the world...35%”
The main reason is that the cost of employing here is completely out of control.
It’s not just the wages, it’s the huge cost of complying with the myriad of laws, regulations, requirements, government dictates, state regulations, and a “Pandora’s Box” of legal and regulatory pitfalls an employer incurs when hiring anyone.
The money actually paid to an employee is severely affected by these “hidden” costs. When shipping jobs overseas none of these forces apply. That’s why outsourcing occurs...our own government has caused it.
If American employers were to pay their employees in cash, set up a table with multiple other people sitting at it who represented the legal, government and all other costs (including Social Security) and the money removed from the hand of the employee and passed down the table with each “leach” taking their share of it until the original money (what’s left of it) was given to the employee, for the first time ever, they would actually know how bad it really is and have physical proof of what our government is doing to us.
However, our government hides these costs so that employees never see them. Take Social Security matching, Unemployment insurance, and a host of other hidden costs for example.
I’ve been an employer for over 35 years and with each passing year the cost of all regulatory requirements and costs involved with employees continues to grow. On top of that OSHA and other “safety” and insurance requirements continue to be out of control.
Yes, foreign workers work for “peanuts” and the reasons I cite are why American businesses are fleeing the mainland. However, what we call “peanuts” is a decent standard of living over there. I wonder why? Maybe it’s because that the cost of living over there is not affected by a bloated government out of control and a legal system in which you are guilty until proven innocent, not the other way around.
It’s time to give the entire paycheck to the employee and make them responsible for paying their own taxes, Social Security and every other cost the employer incurs due to hire them. Then, the revolution will finally occur to regain our freedoms from the chains of government involvement.