We'll see how it plays in Peoria.. and Singapore . ;-)
Very smart since it has almost zero to do with why jobs are outsourced, but sounds like it. Kerry the "free" trader gets to pretend he's going to do something about jobs while not offending his corporate benefactors.
Thats stupid.
It is a smart move by Kerry, because a whole bunch of people will read this and think it has something to do with outsourcing. They'll think that because his campaign says it does, and because the article is full of mumbo-jumbo.
Let's say you have a factory in Texas, and you make drilling equipment. They're drilling right now in the Ukraine, where people still engage in economic activity instead of suing each other over environmental regulations. And you got a piece of this deal. You're shipping $600,000 a month worth of drilling bits to Ukraine, and making pretty good margins on them.
But now Kerry is going to stop outsourcing. How does he do that? By raising taxes on the "overseas profits" you are making by selling goods from your Texas factory to drillers in Ukraine.
This helps America, because it reduces your profits. So you have less money to invest in new plant and equipment, and the money you were budgeting for salary increases just got taxed away.
You have now been helped by the government. Congratulations. We finally have a candidate who will do something about outsourcing!
It might be a smart move politically but it is bad policy for the country.
Company USA, (a U.S. Company) manufacturers in China and sells to another country, let's use Japan as an example. A competing company, Company EU (from Europe) also manufacturing in China sells a similar item to Japan. Both companies are cost competitive and take a aggressive sales approaches that keep margins tight.
Along comes Kerry's tax those dirty overseas U.S. companies that have sent U.S. jobs overseas.
Faced with higher costs in the form of higher taxes and low margins due to a competitive sales environment, Company USA must raise prices. Company EU gains a competitive advantage and market share.
And, in case you haven't noticed, is just about the ONLY issue that has RIVEN the Conservative Base.
"When they came for the Unionized Factory Worker, I did not complain because I was not a Unionized Factory worker, and when they came for..."