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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (1282)	5/19/2014 8:59:33 PM
From: Kirk ©	Read Replies (1) \| Respond to of 26770

I want to add I've said before we moved a whole product line I helped INVENT to Asia for tax breaks. I was told by the man who made the final decision that HP didn't give a damn if the whole business lost money after it moved as the tax breaks on ALL our stuff made there were large compared to the lost income from having less experienced R&D engineers we had to train do the work was tiny. It was basically a transfer payment to train their people to do US jobs. We moved a profitable business overseas to lose money for that product line but it saved more on taxes overall so the bottom line was better. You see, I actually speak from first hand experience.... not some talking points from the likes of Maxine Walters, Barney Frank or Barbie Boxer...

To: Kirk © who wrote (1282)	5/20/2014 9:52:21 AM
From: rdkflorida2	3 Recommendations Recommended By gronieel2 Jerome Kirk © Respond to of 26770

Kirk, total cost, yes. Wages have always been stated at the number one reason. Number two reason in cost of production is/has been energy costs. So what has changed? Energy costs in the U.S. Now I would add "stability" as the number three reason. Does anyone really want to move to a country that could tip to chaos at any moment? As for repatriation of overseas money why would that go into any production increases when there is little or no demand? Look at the companies that have cash here in the U.S. What are they doing with it? Stock buy backs, dividend increases, buying other companies, etc. Not much going into increased production. I would say any money that was repatriated would go into all of the above. Very little would go into expanded production and hiring in the U.S. Whenever I speak with people in business the first thing they mention as a prerequisite to expansion is demand. Taxes and health care are down the list. Not that they are not considered, but they are not at the top of the list. Maybe this varies by industry. As for past tax cuts one must remember that the Reagan cuts came at a time when the majority of the population was in their peak earnings years. I could post more thoughts but I think that is enough for now. RDK