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Politics : View from the Center and Left

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To: Steve Lokness who wrote (125198)	11/20/2009 11:15:46 AM
From: cosmicforce	Read Replies (1) of 542749

As much as I'd like to blame GWB, he really just continued policies that have been in place for 20-30 years including both Democratic and Republican administrations. One could say that the trend away from American manufacturing preeminence began in the 1960's. As long as companies are entities driven by profit, they will act rationally and chase that profit. All that government can do is tilt the table using taxation and subsidy. Without some guidance, the vagaries of the world economy shape the manufacturing location. We've instituted financial incentives that made companies move labor out of the U.S. Even if foreign labor was the same price, it is approximately 40% cheaper to use. I will say that for my company, the move of products from California to China was not without a quality impact. It also didn't save us nearly as much as the bean counters predicted. It was foolish to make external labor fully deductible while domestic labor is only about 60% deductible.

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