Thursday, September 9, 2010

The Economy

I'll tell you what's wrong with our economy. Americans don't make anything anymore.  Practically everything we buy is made somewhere else. We have found that it's cheaper to buy manufactured goods made somewhere other than in the U.S.  Even your "American made" automobile isn't really made in America. Check it out for yourself.

We used to make everything ... and we were the best at making everything. And then something happened ... our American jobs started moving over-seas. I think we should be very clear and approach this subject with some intellectual honesty.
The jobs that got "shipped over-seas" got "shipped over-seas" for two reasons: inflated American wages and overbearing government taxation/regulation. We have two entities to blame: corrupt unions and big government politicians.

Do you really think American businesses just woke up on morning and decided to move? Yeah, right!  You have to ask the question ... what forces caused the greatest manufacturing base in the world to migrate to other countries?  Don't look at me ... I didn't have anything to do with it. I suspect you didn't either, did you? So, if you didn't and I didn't , and your neighbor didn't have anything to do wit it... who did?  American businesses just didn't arbitrarily pick up and move on a whim. They carefully considered the pros and cons of moving their operations over-seas.

One major consideration business make before moving its operations out of the U.S. is productivity, which is measured solely on the relationship between the cost of labor as it pertains to profit. Simply put, the cost of labor directly affects profitability. I'm afraid the corrupt union leadership doesn't understand this concept. Another consideration business must consider are the taxes and regulations imposed upon its operation. When taxes and regulations deter the profit motive, business is forced to either close up shop or or move to a more friendly environment. I'm afraid that big government proponents don't understand this concept.

In evaluating why jobs are being shipped over-seas we only have to look at the environment at which they are asked to operate.

Darko Festin

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