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Imports and loss of jobs... When did it all start?  email this discussion to a friend?

myLot reputation of 48/100. iriscot (792)   ranked 556 out of 3,985 in politics 4 years ago

As a retailer of electronic equipment in the 1960's through 1999 I could see it happening first hand.

We were dealers of Zenith, Motorola, Admiral, Hoffman and General Electric. We sold Zenith, Admiral and Hoffman transistor radios. The Hoffman was even powered by solar cells. They were high quality radios and our customers were happy with them. If one of them quit working our repair department could repair them at a very reasonable price, we couldn't even get parts for the other junk.

All of a sudden we began to see Sony transistor radios hit the market in the U.S. and several unknown brands were being sold at discount stores. Who was buying these cheap brands that were flooding the market? Well, it was "Joe the automaker" and others who worked in factories located nearby. They would get their paycheck and head for the discount stores and it wasn't long before we were no longer selling our quality product. It wasn't long before Motorola and the other companies no longer manufactured small transistor radios. Japan, and the other middle east companies now owned the market. We no longer sold small radios.

A close friend of mine was talked into buying one of the early Toyota cars that hit the U.S. He was an insurance agent and sold a large policy to a new Toyota dealer and he kind of felt obligated, so he bought one. It wasn't long before that thing was falling apart and was a piece of junk. He would take it back to the dealer for repairs and they never did straighten it out. He ended up taking a licking on it as he traded it in on a Dodge.

Well, before long the Toyota car was refined and Toyota began building a very good and dependable car and pickup truck. Before long they were selling like hot cakes, particularly on the West Coast.

The Japanese companies were supported by their government with their goal of getting a large share of the American market. The price was lower than the American car and the quality began to outdistance them.

What happened to the U.S. auto manufactured cars? Cost of production continued to raise and priced them out of the market and instead of building a car that the general public wanted to own, they stuck to building high ticket cars where there was a large margin of profit. After all, they had to make the stock holders and a stubborn board of directors happy. Well, the bubble has busted along with the companies.

I personally drive a Buick LeSabre and love the car, it gets good gas mileage and is a very dependable car, as the one before this one was. Before that I owned Pontiacs and Oldsmobiles. I hate to see GM be in the financial condition they are in. However, unless there are restrictions that will place controls on them to ensure that they will build hybrids and electric vehicles and stop producing the large gas guzzling SUV's, trucks and hummers (that are only statis symbols) I am against giving them our tax money, they call it a loan, but what if that doesn't work out.

The Union workers will have to settle for less and work to put their companies back on top. We were there at one time and there isn't any reason that we can't be again, if everyone will work towards the same goal.

No more outsourcing to foreign countries. No more rediculously large salaries and bonuses to CEO's and board members. They deserve very little until they wake up and get things back on the right track. This should be a wake up call for them.

If you work at a Ford, GM, or Chrysler plant you should be required to buy their product and not some piece of foreign iron just because it is cheaper. I know that Ford and GM employees get a nice discount when they purchase a new car. If the quality of the auto they are building doesn't come up to the foreign car, it's their fault.

I will now jump down off of my soapbox.

 

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tags:  chrysler, gm, bubble, buick, buick lesabre
 
1. myLot reputation of 83/100. lilwonders456 (3526)   ranked 34 out of 3,985 in politics   4 years ago

It all started when the rest of world started catching up with US. After world war II we were one of the few countries involved not bombed to heck and back. We still had running factories, and such. So we got the jobs and factories opened here. Well those countries rebuilt and wanted those jobs for their employees. Add to that that some used to be third world countries are now catching up too and we are now in a global fight over companies and jobs. Their workers are just as good as ours, but they will work for less. Alot less. Plus those countries are offering sweetheart deals to get the companies to come there because they need jobs for their population.
Now add to this the consumer. We want goods that are cheap. We do not care what country it comes from. On one hand we want more pay, and on the other we want cheap good. Look at walmart. They are a perfect example of giving the public what they want.

Like it or not we have to face the reality that we are in a global market. Companies will go where ever they can get the best deal and most bang for their buck. We are no longer competitive therefore the jobs are leaving. We can not just pass laws saying "you can no longer outsource". We can not demand or order them to stop outsourcing. It is their company and they can operate in whatever country they want. We CAN offer a carrot like if you do not outsource we will reward you with a tax break. We also have to become competitive. We need to offer good employees at a good price. Which means a pay cut. I know no one want to hear that. loook at it this way....you are a employer...you have two applicants come in for a job. Both are qualified but one is willing to work for a lot less and go without most benefits. Well you are going to hire? The one willing to work less. YOu will get the same work out of him but it costs you less. Which means lower overhead, and more flexibility in the market to stay price competitive (not to mention higher profits).

We just like the big three have failed to stay competitive. We were pumping out gas guzzling employees (more cost in pay and benefits) when the other countries were making more fuel efficient employess (less pay and benefits) that we were just as well made as the gas guzzlers but cost them less. The customers (corporations) wanted more fuel efficent employees.

Sorry to be so long winded.


myLot reputation of 48/100. iriscot (792)   ranked 556 out of 3,985 in politics  4 years ago

I agree with a lot that you say lilwonders, you're second paragraph spells gloom and doom for all industry in the U.S.

I travel to St. Louis quite often due to treatments at the Siteman Cancer center and in passing by a couple of the auto plants, I see the parking lots full of foreign built cars, as a dealer friend of mine calls "iron". If there was any loyalty towards the company that provides a paycheck to buy the food, clothing and housing for each worker's family, you would think the employee would drive the same product that he is building. This upsets me very much, so I can't feel too sorry for that worker when he comes to work in his Toyota or any other brand other than the one he is building!

I had to go buy a new monitor for my computer, since my old one crashed. There wasn't much of a choice as far as stores go. Walmart, Best Buy, Circuit City (now in financial trouble) and maybe Sears. I settled on Best Buy (my grandson worked there while he was going to college), there was about 20 different monitors lined up on the shelves with all kinds of brand names on them. I was looking for a 19" flat screen and figured they were all made overseas so it didn't make much difference which one I bought concerning the economy. I settled on one that was on sale and they shipped it to me at no charge. I asked the salesman where it was manufactured and he had no idea. He said maybe China, Korea or some other country in that area. The name on the front says "HANNSPREE", I never heard of that before. It has a beautiful display and works great. WHAT'S A PERSON TO DO?

I probably should have waited a couple of weeks, I see they have dropped the prices some more, but I couldn't be without my computer. We seem to get addicted to these things.

I don't know what our companies can do to become competitive. I was watch the "Charley Rose Show" last evening and he was grilling a couple of experts. One stated that the workers had already made concessions and that their wages was in line with the Toyota plants workers that is located here in the U.S. He also stated that the quality of the cars is as good or better. So, it must be that top management is skimming all of the cream off the top.

Just like the top dogs in AIG, what they did is unexcuseable, they need to be rooted out and replaced.

Well, I guess "it will all come out in the wash" as they used to say.

Time to step down before I get angry!


myLot reputation of 83/100. lilwonders456 (3526)   ranked 34 out of 3,985 in politics  4 years ago

I lived in Kansas City for a while. I feel sorry for that town right now. Sprint did a HUGE round of layoffs a few years back and it really hurt. Sprint is still laying off. Sprints built thier "Sprint World Center" there. It is a huge campus of buildings. It is just about empty now. Plus the other major employer there is Ford. If they go under it will just about kill that city.

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