Posted on 09/15/2015 9:26:26 AM PDT by Hostage
FULL TITLE: GE may move up to 500 US jobs overseas since Congress failed to renew Ex-Im Bank funding
NEW YORK – General Electric Co. may move up to 500 American jobs overseas because Congress did not renew a government program that allows foreign companies to borrow money to buy U.S. products.
Authorization for the U.S. Export Import Bank was not approved by Congress, causing it to stop lending on July 1. Foreign companies use the agency to buy expensive U.S. products when bank loans are not possible.
As a result, GE says 100 jobs from a Houston plant that makes gas turbines will move to Hungary and China in 2016. The Fairfield, Connecticut, company says those countries have lending options in place for customers.
Another 400 jobs could be created in France instead of factories in South Carolina, Maine and New York if the company wins projects it is bidding on. The projects require financing, which the export credit agency in France has agreed to provide it.
Some folks laugh at putting a successful businessman into the White House. I think it’s imperative.
This cannot continue.
We have tens of millions of people out of work, and more jobs are leaving every day.
What the hell?
WAAAA WAAAA WAAAA WAAAAA!
I’m taking my ball and going home!!!
General Electric is the prime example of inbred Crony Capitalism. It went from a real cutting edge company to one that, more and more, makes its money based on government breaks and subsidies. I worked there for a brief time when I was younger and was proud of my association with it. Now I view it as part of the problem. Let them take their jobs overseas. If the only reason they are keeping them here is because of a taxpayer subsidy, then those jobs shouldn’t be here. And while we’re at it, cut off their other subsidies and special tax breaks. Screw them.
How much did US taxpayers lose when loans to buy Solyndra solar panels went belly-up?
Boeing and GE can afford to get the loans for their customers to buy planes and engines on the open market.
I don’t disagree with that. My comments were centered on the idea more jobs are moving off-shore.
We need someone who can understand why, and formulate better government policies to keep them here.
Even getting government completely out of the way would be better. What we’re doing now is incentivizing them to leave.
Ending ExIm was a good thing. It simply provided some major corporations with cheap credit so that they could extend financing to some other major corporations or even governments. It also provided our politicians with another tool to buy votes, reward friends, and punish enemies. This is all true of many other programs as well but still it is good to prove to ourselves these programs can be eliminated.
I work for a company that exports. No one is guaranteeing the credit we extend to my foreign customers. Why should my tax dollars subsidize some other company?
I do not know what is expected of Trump but why would that matter? The same things are needed regardless of the candidate. Which is: cheap energy, low taxes, skilled people, and low regulatory burden.
Our government is actively destroying those items but while it does it extends favors such as ExIm to buy votes and money. Now that some major corporations have had one little nipple removed perhaps they will join the fight to improve the overall business climate.
More than likely, GE was already planning to offshore these operations. Dropping the ex-im just helped move up the schedule.
The company that I work for purchases locomotives from GE.
As of late, the majority of the replacement service parts we use are being drop shipped from china, complete with shipping labels and crate markings in chinese. It drives the parts department nuts.
And, the build quality/warranty issues within the last year or so are getting to be a real problem.
I think GE is taking the GM/contract piecework/consumer products route, which is to be a financial/sales/marketing firm that doesn’t actually manufacture what they sell.
But I thought that sending jobs offshore was one of the left’s cries against GW Bush? Say it isn’t so that this is continuing under Obama?
GE gives BIG money to liberal elites... that gives them the right to screw over the American people.... (well, that’s what liberal elites have told them)... Kind of like selling indulgences...
Eff liberal elites...
Jobs are a by-product. Companies are not started to create jobs. They are started to make money. If people are needed to help make money in a given venture they will be hired.
If a person cannot produce at least the amount it cost to employ them then it doesn’t makes sense to hire them. In most instance the person would need to produce a surplus beyond what it costs to employ them.
Jobs are not leaving. What is leaving is the capital, ideas, entrepreneurs, inventors, etc, that need people to help them make money.
Of course once a business makes money there is the question of how much our government allows the company to keep. Suffice it to say many countries are much more hospitable than our own.
In 2011, long before the current Export Import Bank issue, GE moved its medical imaging business to China, resulting in a significant transfer of technology and jobs to China. The existence of the Export Import didn’t prevent GE from making this move.
http://rightsite.asia/en/article/ge-moves-healthcare-imaging-beijing
GE is one of the multinationals keeping profits overseas in order to avoid US taxation:
http://www.huffingtonpost.com/2013/03/11/general-electric-taxes_n_2852094.html
In 2010 GE moved its lightbulb business overseas, closing its last US factory:
https://scottystarnes.wordpress.com/2010/09/08/ge-light-bulb-factory-closes-moving-jobs-overseas/
GE is the poster child for crony capitalism. The company moves jobs overseas based on its perceived business interests while shamelessly avoiding taxes and holding out its hand for government subsidies through the Import Export Bank.
End the Import Export Bank. Let the “capitalists” raise capital in the open market instead of benefit from government loans.
What would you expect Trump to do?
While I don’t disagree with you to a point, there has to be some rationality to all this.
If it is optimal to have tens of millions out of work, then the best situation would be to have everyone out of work.
That obviously isn’t the best situation.
We need to develop and implement policies that help business turn profits with domestic employment. If we can’t do that, we are done as a nation.
Stupid Stupid Stupid GOP.
Killing the bank when it was making money and help American companies was just stupid.
Thanks Cruz. /s
We really need Trump.
I believe he would propose and help pass legislation that would reduce corporate and small business taxation. I believe he would do the same thing with regulations, red tape. He has said he would look at implementing tariffs. I believe he would renegotiate trade policies in some instances.
We cannot continue to experience the stagnation of having tens of millions of people out of work here.
While some folks will talk about the increased taxation that tariffs represent, they completely miss the fact that unemployment is in effect a 100% tax on income. No, you’re not working, but you have zero income.
From that zero income, the federal government gets zero. States and local governments do as well. And on top of that terrible outcome, the unemployed costs our society also. There’s welfare, unemployment, housing, and other drains on the economy.
This cannot continue.
Solyndra loans weren’t Import-Export bank loans.
Boeng and GE are in competition against foreign countries that also provide low interest financing. Under our current rules, they can just move to those foreign countries and continue producing there.
In fact, Boeing just announced they are going to start flying planes to China to be finished by Chinese labor.
Solyndra loans weren’t Import-Export bank loans.
Boeng and GE are in competition against foreign countries that also provide low interest financing. Under our current rules, they can just move to those foreign countries and continue producing there.
In fact, Boeing just announced they are going to start flying planes to China to be finished by Chinese labor.
GE is also the top stock held by Congress critters.
So do you support the EXIM bank?
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