There is a funny line I like to use when someone tells me that we don't make anything anymore in the United States. I tell them, "yes we do, we make hamburgers," and that always gets a little bit of a laugh, but in many regards is not very funny is it? It seems that the United States Corporation has a factory floor, where all the corporations put their factories, and unfortunately the factory floor is not in the United States, it's in China.
Many people say that the economic recovery has been less than adequate, and to that I do not disagree. But, when they say this economic recovery has not produced any jobs, I believe they are mistaken. In fact the American consumer is back buying things, and American corporations are producing more than ever before. They just aren't producing and manufacturing here in the states, again they are making things in China. Do you know why? And before you tell me it's because of the low labor rates, I'd like to point out a few other facts to you.
First, yes the labor rates do have something to do with it, but there is much more to the story. For instance China is opening their markets, and US companies want to sell products into that country. If we have factories there, their government is more than likely to allow us to compete in China, as we are providing jobs as well. Remember that is a communist country, and although the Chinese love capitalism because they believe it is glorious to be rich, they also want American companies to join Chinese partnerships to share that wealth.
Next, I'd like to point out that we have it tough with here in the US with labor regulations, labor unions, Obama Care, class-action lawsuits, and environmental regulations chasing companies away. Why would anyone build a factory in the United States, and wish to compete in the global market and at such an incredible disadvantage? It costs 8 to 10 times as much to build a factory in the United States due to all the regulations. The unions are demanding excessive high wages with benefits without providing that level of intensity and productivity so that it's almost impossible to make a decent profit.
Then we have corporate tax rate issues, and all the lawyers always trying to sue corporations with deep pockets. If we continually chase American businesses a way to foreign shores, we shouldn't be surprised that all the jobs being created by our recessionary recovery are happening in China and not in the United States. Worse, it's too bad that it often appears that our elected representatives have never studied free-market economics, or really understand what capitalism is truly about. Indeed I hope you will please consider all this and think on it.
Many people say that the economic recovery has been less than adequate, and to that I do not disagree. But, when they say this economic recovery has not produced any jobs, I believe they are mistaken. In fact the American consumer is back buying things, and American corporations are producing more than ever before. They just aren't producing and manufacturing here in the states, again they are making things in China. Do you know why? And before you tell me it's because of the low labor rates, I'd like to point out a few other facts to you.
First, yes the labor rates do have something to do with it, but there is much more to the story. For instance China is opening their markets, and US companies want to sell products into that country. If we have factories there, their government is more than likely to allow us to compete in China, as we are providing jobs as well. Remember that is a communist country, and although the Chinese love capitalism because they believe it is glorious to be rich, they also want American companies to join Chinese partnerships to share that wealth.
Next, I'd like to point out that we have it tough with here in the US with labor regulations, labor unions, Obama Care, class-action lawsuits, and environmental regulations chasing companies away. Why would anyone build a factory in the United States, and wish to compete in the global market and at such an incredible disadvantage? It costs 8 to 10 times as much to build a factory in the United States due to all the regulations. The unions are demanding excessive high wages with benefits without providing that level of intensity and productivity so that it's almost impossible to make a decent profit.
Then we have corporate tax rate issues, and all the lawyers always trying to sue corporations with deep pockets. If we continually chase American businesses a way to foreign shores, we shouldn't be surprised that all the jobs being created by our recessionary recovery are happening in China and not in the United States. Worse, it's too bad that it often appears that our elected representatives have never studied free-market economics, or really understand what capitalism is truly about. Indeed I hope you will please consider all this and think on it.
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