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.
I’ll bet there’s lots of ‘legal’ kickbacks involved...
The upside is that they will get taxed back into the fold when tariffs are raised as sanctions against their nonsense.
In reality a zero % corporate tax rate would drive these companies back into the country like ducks flying South in winter.
The export import bank is the epitome of crony capitalism.
Boeing also said they could borrow money without Gov’t help.
The two lovely ladies in the Senate from WA get ‘donations’ from Boeing for providing cheap money.
787 parts are hauled to Everett from Italy and Japan. No planes are 100% domestic anymore.
Solyndra losses came from the US Treasury, no matter what the pathway.
Boeing can, just not as cheap. Meaning they lose some competitiveness. Boeing was also part of a group that opposed killing the Im-Ex Bank.
The pathway for the Solandra losses matter. Those loans were made by Obama to his fund raiser bundlers on fraudulent statements.
The IM-Ex bank has make something on the order of $7 billion that gets returned to the treasury over the last 20 years. And in the process helped American jobs. They don’t finance unproven technologies like Solandra. They finance export deals where there is an established product and a clear buyer and seller.
Search for aircraft N747BC.
That’s how the parts get to the US.
.
corporate temper tantrum at best ...
economic blackmail at worst ...
time for a NATIONAL boycott of General Electric ...
.
A friend of mine who used to be part of a Class 1 mechanical department hated GE locomotives, his boss hated GE locomotives, the crews hated GE locomotives, etc, etc...
Who DID like the GE locomotives were the suits who GE Capital cultivated. It got to the point where EMD could not out-manipulate GE when it came to financing, and that was that.
Mr. niteowl77
> “The IM-Ex bank has make something on the order of $7 billion that gets returned to the treasury over the last 20 years. And in the process helped American jobs. They don’t finance unproven technologies like Solandra. They finance export deals where there is an established product and a clear buyer and seller.”
I tend to look at these issues from the standpoint of a scientist.
For sake of viewpoint, say you, Danny TN, come to me with a gut bacteria that has made you sick and you are slowly dying from it. I have the cure (Ex-Im Bank) but there are side effects (crony capitalism and corruption). Let’s say my cure for your sickness has the side effect of damaging your liver and can kill you if it causes your liver to fail.
Is ‘my cure’ worth the risk or should you seek other remedies?
What harmful side effects do you see from the operation of the Ex-Im Bank as it is presently set up? Do you see that it should be reformed? Or should other private banks be induced to fill the vacuum if the Ex-Im Bank is shutdown permanently?
Were did I say it was optimal to have anyone out of work? So you want a policy that says we should have profit and employment? No problem, I would be glad to start a business tomorrow and hire 1,000s if the government has a program that assures me of a profit.
On the other hand you could have no policy at all just a low flat tax, light regulatory load, no unions, EPA, OSHA, FDA, FTC, and I am guessing that you will have more demand for labor than could be fulfilled.
The problem is you have a “we” solution, as in “we need”. Business is an “I” proposition. I work, I invest, I take risk, I should reap the reward. Sounds like you want a government led policy because who else “implements” policies besides the government. That is a “we” I can live without.
Maybe it makes money. So what, Feddie, Fran, and Sallie all “made money” too until they did not and killed our economy to boot.
If it makes o much money was doesn’t a normal for profit bank do it instead? Because in order to cover the risk of default they would charge more interest. In some cases they may not even make the loan. So the only reason ExIm “makes money” is because it has a government subsidized guarantee. Maybe a science background is not the best for evaluating political cronyism as part of the variables needed to make an accurate conclusions.
It is the same Ponzi scheme as Flood Insurance, Crop Insurance, Student Loan Insurance, Mortgage Insurance. What does the scientific process say about those?
I don’t like it either.
Something is rotten, and I’m smelling odor from several different directions.
Not yours...
I chose to focus on people out of work.
We have a problem there. I’m not convinced very job went off-shore simply to keep the business alive. In many instances they were moved off short to make larger profits for the owner.
Look, I’m sympathetic to that up to a point, but as stated before, we can’t eliminate every job in the U. S. based on bigger profits.
Yes, taxation needs to be addressed. So does government red tape, regulations, onerous EPA, and global warming nonsense.
IMO taxation on one big business, does not equal the taxation of all it’s employees. Hell, let businesses bypass taxes. Create jobs. There’s your tax base.
If it’s a small business, which most are, I’d like to see vastly reduced taxes. Free up money for expansion, better employee benefits, and increased productivity.
The more people working, the more widgets will be sold in the U. S. We have broken down the natural work and purchase relationship in the U. S.
We let the Chinese work, and expect our citizens to purchase with no income.
There is no “we” in business or job creation unless you ask the government to do your bidding. So when you say “we” I assume you wish the government to get involved once we get to your point of no longer being “sympathetic to that (’make larger profits for the owner’) up to a point”.
So at what point does your concern for jobs cause you to have the Federal US Government by force of arms limit, reduce, or confiscate profits from an owner of a business in order to create more jobs.
I’m not sure exactly which world allows you to make less profit and add more jobs, China maybe?
You could always start a company, buy one, or even invest to become an activist shareholder in order to create jobs and take less profit.
You are on to something! The government should own all profitable businesses. Think of the money flowing into the Treasury and all of the kind benevolent things the US Federal Government could do!
Then all the industrial planners and engineers (many to be found right here on this forum) could do what works and the rest of us could happily follow their plans. No more worries about China it would be our benighted planners versus the Commie planners.
Utopia!
Once again for the learning impaired.
We, are the citizens of this nation.
We (the citizens of this nation) cannot continue to thrive if every job is moved off-shore.
This nation cannot continue to thrive if every job is moved off-shore.
This nation and it’s inhabitants will not survive if all R&D, development, and manufacturing are moved off shore.
Why do I have to explain this to you, unless you have an agenda that is so twisted this means nothing to you?
If you can’t grasp this, go ahead and do what you’re doing. Just watch the nation continue to have tens of millions of people out of work, and see us drop to third world status.
We used to be known for Yankee ingenuity. What ingenuity will we have when all R&D is done in China or another area of Asia?
How many tens of millions of people have to be out of work, before you begin to notice we have a problem?
Take a deep breath and ask yourself why the jobs and capital are leaving. Is it to pursue a better profit? If the answer is “yes” take another deep breath and ask yourself why these businesses are not making enough profit in the US?
Then develop an answer that involves allowing businesses to earn enough profit that they wish to stay instead of elsewhere. If you answer involves, at least in part, lower taxes, less regulations, cheaper energy, and less lawsuits you are on you way to promoting job growth without any governmental planning.
But if your answer is the jobs and capital are leaving because TOO much profit is expected then go join Obammah and all of the other central planner wannabes. They will help you determine what amount of profit is acceptable and how many jobs should be created and all of those other pesky things like work hours, skin color, environment, living wages, global warming. See the answer to the government screwing something up is to ask them to do more.
ending the EXIM was stupidity born of misguided idealism and ignorance
Once again for the learning impaired. There is no need for central planning if you simply remove all of the barriers erected in this country that cause businesses to leave.
No need to fret and try to rally the royal “we” into figuring out how much profit is acceptable and how how many jobs should be created.
If you have a solution to off-shoring please put it out there. My plan is simple and does not involve using the government.
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