The Myth of "Exporting Jobs"

Ludwig von Mises Institute ^ | June 27, 2003 | William L. Anderson

[Jerr]

Not surprised about Magnequench --- used to live in Anderson, IN in 1997. Magnequench must have been part of the Delco-Remy plant facilities (another operating subsidiary of GM). They were constantly lossing money and trying to divest every which way. Same motis-operenti (?sic) as all the Chinese operations. Become a participant in an investment and then steal all the technology that you can and build a competing factory in China (or let foreign investors build a plant in China then steal and build another plant). But this is nothing new under the Clinton administration --- they have allowed massive amounts of sensitive technology to be sent to China (how do you think THEY developed their ICBMs to increase in range so that they can now target the U.S.).

Investment by China in U.S. industries is dangerous, but so is foreign (U.S.) investment and technology being sent to China. We are providing China the rope to hang ourselves that we did not provide to the Soviet Union. Actually, now, the Communist Chinese are a much bigger long-term threat than the Soviets (directly).

This has been fueled by the greedy CEOs of U.S. companies trying to make an extra buck or two. They are selling out their American workers in order to maintain themselves as king of the hill at their companies as long as they can, when in actuality, they are canabalizing their companies into oblivion. They strive to keep shareholder value and current earnings up so they can continue to collect their exorbitant salaries. They argue that they deserve to be retained because they increased profits while they demand that all business units and workers adhere to cost-cutting (and then down-sizing...and then out-sourcing). They feel that there is no significant threat as long as they turn a profit. The individual stockhold does not have much real say in anything (basicly, invest or sell)...large institutional investors and pension funds don't say anything if a profit is maintained.

Besides now that we have "free trade", the U.S. can't compete with foreign competition that doesn't pay their workers much, and doesn't have to worry about worker's benefits and environmental regulations while government subsidies. Free trade doesn't exist unless we are all on the same playing field. U.S. jobs are being exported, even if it doesn't fit the economics definition (they can go ahead and say resource reallocation, but it still means the same thing even if we don't put those jobs in a box and send them to China or India) while we box up and send the manufacturing equipment from the plants that are being shut-down.

American citizens need to put the brakes on this all, by letting their congressmen, president and all company management know that this will not be tolerated and will be ended at the ballot box and the voting of consumer spending on the products of companies that play fair with their employees and investors. These companies that are investing overseas now, were founded and developed initially in the United States. They profited from the consumer market, labor force, business climate, laws and freedom in the United States. They grew big and strong off of the American consumer and our economy. Now when they want to get greedy and become a parasite to the U.S. economy, they now want to get rid of their American workers. They need to change before it is to late, and they need to learn that the American workers are their biggest consumers. If they can't learn this, then it is time for the CEOs to lose their jobs and get someone with some actual management skills to reinvent and rebuild their companies rather than hollow them out, falsify financial statements, and then declare that there is nothing else that they can do but declare bankruptcy.

Americans need to send their message NOW --- start voting with you purchase decisions, your financial investments, and at the voting booth.

[Jerr]

As long as their trust funds and investments are doing well, why do they need to worry? When push comes to shove, they will move their plants overseas and pocket the extra income until their earnings decline.

As Marie Antionette said, "Let them eat cake"

But what I say to society's parasites is off with THEIR heads.

[Paul Ross]

Actually, Magnaquench was a highly profitable operation as the applications for the super-magnets exploded and got spec'd into everybody's product line....particularly the US Defense dept.'s. So the spinoff of that was all the more odd. It was like the last separable operation to be spunoff. It definitely has the signs of being pressured.

[GOP_1900AD]

Bump.