To: TobagoJack who wrote (65840 ) 8/31/2010 1:18:25 AM From: energyplay Respond to Note that China's advantage in labor costs, and better utilization of capital, and a concentration of knowledge and skill allow it to try a more adventurous business model - You can go after niche business with lo cost labor, because it won't kill you to keep the payroll going in between major projects. Try that with over priced union labor. You can put 500k in if you know you can get it out because you are the low cost producer and you don't face excessive financial, labor, or environmental regulation AND you have a giant growing domestic market. Contrast to US - why invest if the market is shrinking ? To maintain union jobs ? <<< OPINION : A fix to US manufacturing will need to have lower union wages and benefits, a sharp cut in union work rules, like the auto industry, realistic financial regulation, such a reform of Sarbanes-Oxley, economic policies that encourage GDP growth, directed policies to develop exports for mid-level US firms, some degree of tort reform to reduce risk to capital, lower rates on very long term capital gains, and lower rates for dividends to make risk capital (stocks) more attractive. Better vocational training would also help.
