Why Do Our American Companies and Their Jobs Move to Foreign Countries??
By rodney850
@rodney850 (2145)
United States
October 15, 2008 3:53pm CST
In starting this discussion, I would like to point out that NAFTA is and was Bill Clintons pet project.
The question stated in the title is one that has many answers but not many people have ideas or solutions that might bring these industries back into the fold so to speak.
The first reason that comes to mind is labor and labor unions. Now I know that unions can be a touchy subject and believe me there have been some lengthy and heated discussions in my immediate family concerning unions. My stance is that unions have not only outlived their usefulness but the have successfully priced themselves out of competition for the jobs provided by employers that are currently moving to friendlier climes. I also contend that the union as it once existed for the worker has in recent years began to take on a life of its own and now exists solely for the union and the union only. Example:
In the city in which I live the city and surrounding 50 mile radius has approximately 100 thousand people. We have a plant which is a total union shop that employs about 2000 workers and works around the clock. Every three years a new union contract is negotiated and most of the time this goes without a hitch but the last contract negotiation didn't. The union was asking for a sizeable pay raise which the company wasn't about to budge on and the company was asking for a concession in company provided health insurance and the union wasn't budging on that. Long story short, the union struck and for about 30 days these 2000 people were without paychecks. Now before the union put the strike notice up for vote from the population, the president of the company told them that if they struck over these small concessions the company would be forced to move. The union didn't believe them and now today preparations are being made to move this company and its 2000 jobs to China. How do you think that will affect the economy here locally? Oh, the concessions? Pay raise--40 cents more, health insurance employee paid premium 18 dollars per month. That sure is something to lose your job over, isn't it? The union knew this when they recomended the strike but didn't want to look "weak"! Now they look dead!
The next thing that weighs upon decisions to move companies out of our country is taxes. I have always maintained that you cannont ever overtax the wealthy who provide our livleyhoods simply because they also control the prices of goods we have to have or eventually will want. When a politician arbitrarily states that the people providing the jobs, the goods (cars, groceries, houses, whatever)along with taking ALL the risks and providing their own money or borrowing it, are not paying their fair share when they are already paying the greatest percentage of the taxes paid, this politician needs his head examined! When these people have more money to spend, more jobs are created. When these people are "punished" because they are successful, they do things like take jobs away. As long as there is a mindset in this coountry that the wealthy business owners are the problem, the companies will continue to move and America's economy will erode.
In closing this discussion, we need to examine just how much we really want to "punish" the wealthy business owner for being so successful. When it becomes impossible for these people to make the profit they believe they need to make(and it really is these businesses that decide that)then we will see more and more of these businesses and their jobs with good salaries moving to China, Mexico or where ever the tax laws don't eat most of the profit.
You people who have been here on MyLot know who I am maligning here and now it is your turn to add to this discussion.
Do you feel the same way or not?
Is there a better way?
1 person likes this
3 responses
@Destiny007 (5805)
• United States
16 Oct 08
I agree... only foolish socialists believe that it is a good idea to bite the hand that provides their jobs and thus drives the economy.
You point about unions is well taken... As a state employee we had a union also, although membership was not mandatory.
The year before we voted them out, it was discovered that in all of the time they were supposedly representing us, they never once asked for a pay increase. Our wages remained stagnate while the Highway Patrol got 10% every year. When the governor was asked why Corrections did not give similar treatment, he said the union never asked for any increase... therefore he thought there was no need.
You bet the union got their membership dues every month though.
1 person likes this
@redyellowblackdog (10629)
• United States
15 Oct 08
Too many people simply do not appreciate the difficulty in running a business so as to turn a profit. The people who can do it are a national treasure, a scarce valuable resource, and almost never work for the government.
We need to start having an appreciation for the business owners. Otherwise, we can all be subsitance farmers with a life span of about 30 years like in the 1700's.
1 person likes this
@gewcew23 (8007)
• United States
15 Oct 08
I am 100% in favor of free trade, as Thomas Jefferson put it free trade with all nations and political alliances with none. The problem I see with NAFTA is that it is neither free trade and it is an alliance with two countries that do not always see eye to eye with us. True NAFTA does allow goods to move across boarder without tariffs, which is just another word for a taxes on goods. I do not cry over the companies that left America to go to either country, nor do I for any company that left to go to any other country. Free market place must be global not just here at home. Companies must make themselves as competitive as possible or die. Economic Darwinism at its finest. NAFTA and other trade alliances force us to buy this from them in exchange they will buy this from us. Trade should not be force upon some other country in exchange for something else. Trade should be just like when I want a new shirt, I could go to Target, Wal-Mart, JC Penney, or just stay home and order over the internet. Competition makes the offer and the product better.
Now I know that a debate solely based on free trade was not your mission, but I wanted to put my two cents worth of opinions on that issue.
Businesses will try to find an edge over their competition and if that mean moving a factory over seas then to save a few dollars then so be it. A companies loyalty is to their consumers, not their government. If a product can be made cheaper, and still have the quality that consumers demand then they will do it. The American work force and its government has made America anti-competitive with the rest of the world. Unions, government regulation, and taxes are what is truly why companies will leave America, not free trade.
Just to add on more point, is it any surprise that the only job growth in America is the South with it's low taxes, Free to Work laws, and less government red tape.




