Posted on 05/18/2003 4:20:12 AM PDT by sarcasm
DES MOINES, Iowa--Jobs are leaving the rural Midwest in increasing numbers and economists say, unlike the plant layoffs in previous recessions, factory closings might mean they are gone for good.
Rural factories across the nation cut 4.6 percent of their payrolls last year and about 140 plants closed, according to the Bureau of Labor Statistics. Nearly 500,000 jobs were lost in February and March alone.
Operating capacity at the nation's factories is the lowest since June 1983, according to a recent Federal Reserve report.
Mark Drabenstott, an economist with the Federal Reserve Bank of Kansas City, said factory closings represent 45 percent of layoffs last year at rural factories.
One factor might be globalization--the cheap labor and land that drew many companies to the rural Midwest can be found even cheaper in some other countries, Drabenstott said in a recent newsletter.
One recent example might be the closing of a Maytag Corp. refrigerator factory in Galesburg. The plant will close by the end of next year, leaving 1,600 workers without jobs.
Much of the work will be transferred to an existing plant in Iowa and a plant to be built in Reynosa, Mexico, which will employ 500 people. The average worker at Galesburg makes $15.14 an hour, while workers at Reynosa plants make as little as 58 cents an hour.
Maytag produces $4.7 billion worth of washers, dryers, refrigerators, ovens and floor cleaners annually. Its brands include Amana, Hoover and Maytag.
The Iowa-based company says it has been forced to adapt to a global market that has driven down prices.
''I'm a strong advocate of creating American jobs,'' said Maytag CEO Ralph Hake. ''I'd much rather manufacture our products in the U.S., but we must make good business decisions.''
''Spurring business innovations and more high-growth business starts is an awfully important piece of the economic development puzzle these days,'' Drabbenstott said. ''The key is how do we think about a rural future in which we go beyond the basic industrial plants and think about more knowledge-based industries and move up the technology ladder.''
Hunters, rabid 2A supporters, Harley riders, off roaders, campers, hot rod builders, fishermen, big houses, lots of land, etc, etc, etc.. but they "vote democrat fer mah job"
They do the same thing you describe on a national level. Vote themselves right out of their jobs and livelyhood for some union pipe dream.
PS: If you REALLY want to make one mad, tell him you think the McDonalds guy working the drive up should be union and should probably make between $15.00 & $20.00 an hour.
If he's insulted, remind him what a hard job it is and how much moolah the company has. When he agrees, ask him what he thinks of paying $10.00 for a Big Mac.
If he doesn't like the idea and thinks the drive up window guy is now an overpaid idiot, tell him to go look in the mirror.
(Note: You may be forced to defend yourself at this point)
I thought bringing in all those immigrants would solve Iowa's problems (sarcasm).
My mom was born and raised in southern Iowa (Davis county) and I've spent alot of time there in my youth and it breaks my heart to see the democrats stranglehold on the state running it into the ground.
I've noticed alot of Amish in Davis County and think they have the right idea on how to live (not to that extreme though). Live simple, learn to do for yourself, to stay free of the government, un-American corperations, and leftist unions. Just don't give up your guns.
Wow, it's the same here in the union plant I work in, too.
I think ther is plenty of blame to go around though. At Boeing, back in 1997, Jesse Jackson shook the company down for lot's of money and the weak-kneed CEO's buckled rather quickly. Managment makes mistake, too.
Another problem is that the workers are abusing Family Leave, Workmans Comp., funeral leave, and medical leave at an alarming rate. This is why I heard that the Ford plant in North St. Louis County is closing. Big loss of tax revenue, gone.
Wasn't this happening before NAFTA?
Yes, but it was very risky for companies to do so. The companies that relocated to Mexico were always at risk of being Nationalized by the Mexican Govt. The whole point of NAFTA was to prevent/reduce the threat of Nationalization with a set of rules/law. To stablize Mexico fo the purpose of one day uniting us all.
For the benefit of allowing American companies a safe haven in slave labor camps like Mexico; we also had to open up our borders and opportunites wealfare seekers; the illegals; and drug peddalers.
Make no mistake about it, a one world order is afoot. The sheeple scratch their heads and can't understand why the Fed Gov doesn't seal the borders after 9/11. Truth is they don't want to. The Fed Gov is broke and they hope that many of the illegals will become legit and start paying taxes. Why do you think there is a move afoot to give ID cards to illegals? Why the push for massive amnesty? Why do you think Bush and congress are so interested in setting up a recipricol SS system with Mexico? It's about taxation.
If both major parties and a few third parties don't want to stop it, then it will happen. Can one party alone change it?
Yup, and those that did are watching their high-tech jobs being shipped to India and China.
I am faced with the same decisions. How can I continue to sell products when the Chinese knock-off brand is selling them for less than I can make them in the U.S.? We have already milked the "productivity" cow dry.
Over the past ten years I've come to b elieve it can't be stopped/changed. Look for regulation (outright ban on most)of firearms to pickup steam over the next several years as the government trys to reduce the number of people with the potential to vote from the roof tops.
Truth is, too many sheeple; not enough people with a clue as to what's going on.
Yep, but not at the rate is is now. In a 30 mile stretch from my home in rural Illinois there are 8 or nine manufacturers the have closed their doors sense NAFTA, relocated in Mexico.
Nobody wants to say a thing about what I think brought this all about - UNIONS. There are good points to unions, and bad points. Forcing the price and wages up is one of their bad point to some people and one of their good points to others. It's not all just wages. the benefits that worker take for granted cost these companies trillions of dollars each year, but are not mentioned as a bottom line item the workers receive. .
The 1930's also produced a four-term Democrat president and that party's supremacy. It caused more socialism to be instituted in America than in our entire previous history.
People scoff when I say Hillary can be elected president.
When you take away a decent standard of living from enough people, they will vote for a lying, ruthless scoundrel out of desperation.
You can count on it. World history confirms it.
Further, Ross Perot was quite correct. I voted for him in 1992 and am not reluctant to admit it.
In some ways, I would like to see hard times in this country. Maybe we could create a powerful third party that DID give a damn about regular people.
I think you broke the code.
Unions, combined with the high taxes, big bureacracy, socialist policies and overstringent environmentalist regulations of a typical Democrat state make an almost unihabitable business climate for all but the most robust firms. New Yawk and Kalifornia are perfect current examples, as apparently is Iowa.
Eventually, though, even the robust and efficient companies see their profit margins constantly eroded. They get sick and tired of the hassle, so they look elsewhere to set up shop - especially as their required ongoing capital improvements and expansions are constantly forestalled because of union demands or other expenses related to environmental and other expensive government regulations. Pretty soon whatever economic advantages they had are outdated and they become obsolescent. Then, they must make a choice of whether and how to take drastic and expensive measures to stay in business.
Often, the best (and cheapest) choice is moving someplace else.
Quite often they move overseas, where at least they can remain competitive with foreign companies and they are not the host for another round of parasitic socialist govenment interventions, at least for a while. Sure, a lot of these other countries feed off these businesses, too. But, the cost of this parasitic feeding is usually lower than in the USA, where the union/regulation/tax cycle only starts up in earnest in a short while and the wages are much higher. Add to this the attitude of unionized workers and their unions who are lazy and want to do the least work for the most money and actively prevent needed modernization and you get a sure recipe for a change of location.
Sure, management is sometimes stupid, greedy and even corrupt. But, they usually aren't suicidal - unlike the unions and socialist Democrat States that are driving businesses out.
So, companies take the avenue of least resistance. They head for Mexico or someplace else out of the reach of their current abusers.
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