Posted on 04/28/2016 4:57:07 AM PDT by expat_panama
Let me agree with Mr. Trump, and supporters, that it's a very bad idea for U.S. companies to move overseas and take those jobs elsewhere.
I have personally seen the consequences of these moves in Mexico.
You can see all of these companies in the industrial sectors of Monterrey, Queretaro, Tijuana, and other Mexican cities.
They are down there hiring Mexicans, from floor sweepers to engineers to lots of people with university degrees. They are hiring professionals from the top schools south of the border.
Again, I don't like it but what can a U.S. president really do about it? What legal authority does a U.S. president have...
...the reasons that US companies move to Mexico. This is the one that caught my attention:
Duty-free imports, tax credits & incentives: maquiladoras operate in free trade zones, enabling companies to import materials and equipment without paying taxes or duties, then re-exporting finished products.
The Mexican government also offers a variety of incentives, from capital equipment grants and help with infrastructure to real estate grants, the Aerospace Training Center in Querétaro and tax credits.
How does a U.S. president stop this? He can't unilaterally, no matter how much pressure he puts on the executives not to make the move.
Furthermore, renegotiating NAFTA would mean undoing the economic infrastructure that ties Mexico, Canada, and the U.S. It would likely mean that Congress...
...Trump is raising a lot of expectations rather than proposing solutions to fix the problem of jobs going overseas.
Again, I hate jobs going overseas as much as Trump. At the same, all I've heard so far are slogans rather than solutions. In other words, this is a lot more complicated than we've heard from Mr. Trump. d from Mr. Trump.
(Excerpt) Read more at americanthinker.com ...
A brilliant auto gnome of mine noted noted, add an "EPA Assessment" to every imported product or part. Aka, what the EPA is costing us for every part we make here as the third world pollutes the rest of the planet and the greenies say nothing.
Other things to make us more competitive:
* Obamacare, gone.
* Dodd Frank, has got to go, bring back Glass Stegal.
* 15% Flat Business / Corp Tax, accelerated depreciation is the norm not marc-er's.
* EPA goes through a total makeover. All rules and regs for the last ( insert number of years ) are to reviewed and scored on cost - benefit effective analysis, if it doesn't cut it, it is gone.
* EPA, Dept of Energy and Interior and BLM should be combined, downsized and renamed the Dept of Resource Utilization. Sarah Palin need to be it's Director....
Not specifically about Mexico, but there’s this...
Congress sends Obama bill approving higher tariffs on goods from China
Congress on Tuesday overturned a court decision and reaffirmed that the government has the right to impose higher tariffs on goods from China and other state-run economies that subsidize their exports to the United States.
The House voted 370-39 to pass the measure and send it to President Barack Obama for his signature. The Senate approved it Monday on a voice vote with no debate.
The speedy and bipartisan congressional action came after a federal appellate court ruled in December that the Commerce Department did not have the authority to levy the punitive tariffs because Congress had never explicitly given the agency that right.
If you ask Govt to magically detect and punish companies that fulfill any outsourcing criteria that you can name, the net result will be that Democrat-donors will be given waivers - and Gibson's Guitars will be raided again
The solution is so simple.
Instead of more rules and a more powerful government, just set up zones that operate under the same competitive lack-of-rules as the foreign zones.
The regulatory infrastructure for trade is already in place but is corrupted by multinationals. Since everything coming into US is subject to federal control its very doable with tighter control of porous borders. Such agencies as SEC, FTC, US Customs etc don;t need much tweeking to make life a living hell for companies that try to shaft their US people.
Your assumption that by moving production to Mexico for example, that products will be cheaper. That bull sh!t.
I think he would effectively use slut shaming. No really!
A piece of the implementation of such a plan is reducing the corporate tax rate to keep them here in the first place.
A classic conundrum between a company with employees and shareholders. As a former employee of a Fortune 100, offshoring moves meant layoffs but reduced costs meant stock price rises.
FWIW- I have seen some growth in small manufacturing jobs here in my area. Starting pay is low now that labor costs have flattened but the kinds of jobs that were available for me after high school are making a comeback. And they pay more than minimum wage.
The upside of this requirement is that it protects American industries.
The downside is that it makes USDOT-funded projects very expensive.
I suggest lowering corporate taxes, reducing regulation, and establishing a free market for labor.
As someone else posted, create an environment so a company will not want to leave.
1. Get control of regulatory bodies. We are destroying our economy with laws, rules and regulations.
2. Here is a bold idea, eliminate minimum wage. Let the marketplace determine the wage.
3. Right to work. Union will be allowed but no one could be forced to either join or pay dues against their wills. (Unions would be forced to find ways to get people to join)
4. Use RICO laws against organizations that sue and harass businesses.
5. Education - Return education responsibility to the local schools. Get the Federal Government out of the education business since they are really just social engineering.
6. Repeal Americans Disability Act.
7. Repeal anti-discrimination laws. I do not believe any level of Government should discriminate, but I do believe individuals should have that right. And that includes businesses.
I know there needs to be some laws and regulation but the more you have, the harder it is on the economy.
In other words, make America business friendly again.
Attempts to create a perfect world is in fact what is destroying it.
These are from the top of my head, I sure some will be able to poke holes in my points. May not be possible but we should be talking about it.
So you like the income tax? Would you be willing to replace most or all income taxes with tariffs? More tariffs and less archaic and evil income taxes.
Does this kind of talk scare you? Go Trump go!
Are you a Cruzer?
“I don’t hear the globalist corporation crying over regulations”
And why would they? Chances are they have special tax exemptions - courtesy of their favorite “paid for” congressmen.
That is the ultimate crony move. A global enterprise thus incentivized can choose it’s cheapest production center - and it won’t be in the US.
These companies do especially well by pretending they are employing Americans - and getting paid margins that support that - and then amplifying their margins by utilizing only token US-based production. How much of that money finds its way back to Congress? I think we know the answer to that, don’t we?
I’ve been to Queretaro. Huge industrial area. Samsung built a huge factory there. They have 3 Korean speaking TV stations. The area is very wealthy. They have every modern convenience.
Thanks NAFTA.
Another part has to happen in the schools. Over half the population doesn't belong in college. In high school, they could be learning hands-on and practical things that prepare them to have jobs and skills when they graduate.
Great post.
Get rid of Obamacare.
Remove the enormous legal vulnerability that every American business-owner lives under.
Raze the byzantine tax structure to the ground.
Once we build the wall, Americans will be happy to pay more for a Ford Focus.
Or go without.
“You (make) the economic environment so favorable that companies don’t want to leave.”
________________________________________
Or you make the US economic environment unfavorable enough to foreign producers that they can’t afford to dominate our market.
Stop talking sense.
He cannot. But he can CREATE incentives to keep business here and/or disincentives for leaving.
And then the U.S. government will figure out a way to push people to buy new cars even if they can't afford them. "Cash for Clunkers" was nothing more than a government-funded program to stimulate demand for new cars at a time when the economy was so bad that the average age of a car on the road in the U.S. had reached twelve years.
A nation filled with people driving third-hand and fourth-hand cars is something out of the Third World.
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