Hit by a global train

Milwaukee Journal-Sentinel ^ | 12/5/04 | JOHN SCHMID

[Whispering Smith]

"Mercantilist nations" What does this term mean? It appears to be central to your discussion and I'll need to understand it prior to structuring a reply.

[WRhine]

"Mercantilist nations" What does this term mean? It appears to be central to your discussion and I'll need to understand it prior to structuring a reply.

Mercantilist nations are those nations that erect trade barriers, subsidies and other protectionist measures to shield their industries from international competition while pursuing export "dumping" policies (selling at or below cost) to destroy and take over industries of the nations they export to.

Exhibit A: China. Exhibit B: Japan. China is just taking Japan's trade mercantilism to new heights.

Does this sound like "free trade"?

[Chummy]

"...a production manager/ME manager...worked in 5 different manufacturing plants in the Mke area.

"FOUR of the five plants had outstanding labor relations with unions--no problems whatsoever. (emphasis added)

"Painting with a broad brush is not real smart...."

I concur.

Offering as an example five manufacturing plants in one area, one plant of which had apparent labor relations troubles, is also "painting with a broad brush", is it not?

I did not mean to suggest the problem be tied to "labor relations" per se but rather more with the challenges of trying to manage in the 21st Century while having to deal with a dinosaur that too often is the union-controlled dictates one finds in such workplaces.

Right, wrong or indifferent, did businesses not consider relocating facilities or other means of reducing labor costs, particularly those which may be higher in an environment in which a labor union represents its workforce?

Even in a swath of color placed by a broad brush one may find details that stand apart from the underlying tones.

[ninenot]

As a matter of fact, several of the Allis-Chalmers businesses moved to Southern plants (non-union). Many other firms have moved manufacturing to the South, or Mexico (e.g., Evinrude/Johnson) and have abandoned Mexico for PRChina.

I can name dozens of other Wisconsin businesses who have mirror plants (some smaller) in Mexico and/or China--or who have plants ONLY in Mexico or China--or just China.

One can legitimately argue that unions have caused trouble (and still do in some places, notably Detroit.) One can legitimately argue that enviro, safety, wage/hour, pension, and health-care costs are high in the US.

What one can NOT argue is this: PRChina is hellbent to eviscerate the manufacturing sector in the USA, and is doing a good job of it, while the Bush Administration sleeps.

Meantime, if you think that you could reduce the enviro, safety, health-care, pension, or tax burdens placed on American industry--propose a plan!

No doubt it will get through Congress quickly, right?

[Whispering Smith]

"Mercantilist nations"
Do you have a reference I could read on this subject? I thought merchantilism featured a vertically integrated mother country to and from colony trade structure. Not predatory monopolistic policies you are describing.

[WRhine]

Do you have a reference I could read on this subject? I thought merchantilism featured a vertically integrated mother country to and from colony trade structure. Not predatory monopolistic policies you are describing.

That probably is the truest definition of mercantilist. The term today is often used to describe nations that follow predatory trade practices to help build their industry at the expense of a host country. Try googling for more details.

[Whispering Smith]

I googled. This is what I got. http://www.infoplease.com/ce6/bus/A0832738.html
Looks like I was wrong. Merchantalist nations were apparently obsessed with the balance of trade. However, with captive colonies you could probably assure a positive balance of trade.