Buy anything at Walmart, Target, JC Penny or Kmart these days and most likely they were made in China or a Central American nation. Many of us lost a job or two because their company relocated out of country to avoid paying higher wages and high taxes implemented by the government. But this isn’t new to this nation. In fact it has gone on for quite sometime.
Many large retailers such as those I mentioned above thrive at being the cheapest when it comes to selling clothes,hygiene products, food, and other home products.The cost they pay to buy these goods reflects on the amount they charge to consumer. This practice is called the “markup”. Many companies are looking to buy their goods outside the United states because in countries like China, Nicaragua, Costa Rica and Taiwan labor is dirt cheap and the cost of material is even lower compared to American companies that produce locally and pay more for their goods and the wages of people producing them.
According to the Huffington Post the Average factory worker in China makes $1.32 an hour, Costa Rica $1.79, Mexico $4.92 a day, Taiwan $3.53 an hour compared to the U.S. at $7.25 an hour. I understand that every country around the world have different economies and that we all cannot be equals. This isn’t even putting into account China’s forced labor camps and countries with child sweatshops making their goods while practically paying nothing.
Yet we buy their goods and send our jobs to their nations, many of these nations do not think kindly of the United States and their policies.
The same thing is always spoken when talking about our jobs moving overseas, and in turn importing cheap goods. Foreign workers are paid less and Corporate America see this and moves their operations to these foreign countries to make their goods at a cheaper price then import their goods to the United States to sell at higher prices.This kind of practice is killing the local small American business today.
And in turn if Corporate America decides to build and manufacture in this nation they demand tax breaks and cheap leasing of the land they plan to use. Also many Corporate American companies hire temporary workers at a lower price to make their goods. And if these workers start to demand higher wages, or the local communities want more taxes they up and run to Mexico or China.
Take my state of Pennsylvania. This state offers the Keystone Opportunity Zone or KOZ is a program started in 1999 to lure large corporation into coming to Pa and building manufacturing facilities. In return these large corporations were given no or reduced local and state taxes to be paid while they were in Pa. Most agreements lasted 10 years and in the long run many companies move out of the state. This program welcomed by some is also criticized by many as it brings in no revenue from taxes for the local community, and in most cases pays the average worker well below what they would make in other states.
To someone as myself solving this issue of Corporate America blackmailing the local and state communities is a simple one.
If the companies operating in this nation want to pay little or no taxes deny them that luxury. They have to be told to pay the taxes set up by local and state laws. If they want to move then let them. Sounds like I am confused, but I have a point. Let them move to Mexico, Peru or anywhere else low wages and slave labor runs ramped. But when they try to bring their cheaply made goods into this nation then the Federal Government levies higher than average tariffs on the goods they are trying to import by doubling them. Of course this would raise the prices of the imported goods from other nations and the prices would be passed on to the consumer.
But the average American is not as dumb as people think we are. Higher tariffs, higher cost of goods would force the American consumer to start buying local cheaper goods because now companies that produce in America will have the advantage of being the cheaper priced product.
An example I can use is a Washing Machine. Say machines produced in China and sold in the U.S. are sold for $600.00 while the local American made washers are sold for $725.00. It is obvious which one the consumer would buy. Now a higher tariff on the imported products will raise the cost of the washer to $800.00. Now who has the Advantage. This would give leverage of the United States and their people of Corporate America because the only way they can be profitable is coming back to this nation.
Obviously I am not an Economist, and have a lot to learn and as like everything else this all depends if Corporate America can keep throwing money into the pockets our Politicians and giving them free trips, cars, and other our Political leader say they do not receive but get anyway.
But it starts with the Voting American to stand up and vote Politician’s into office that care for America, not their wallets. Once American can get enough Politician’s into office that will not become a puppet of Corporate America we can start making changes to our advantages, not China’s.
We are so much in debt to Communist China and they are using this to their advantage. Changes in the way America produces and imports its goods are long overdue.
This is only a theory of mine, not a solution but I assume there are tens of thousands of Patriot Americans that feel the same way as I do. Our nation is being exported a little each day, and our future seems to be fading just as much.
Patriotism needs to be an American word again.
- Corporate America’s New Scam: Industry P.R. Firm Poses as Think Tank! (alternet.org)
- Only a Fool Sits Down to a “Zero-sum Game” When His Opponent Is Holding All the Cards! (cadesertvoice.com)
- America’s Corporate Welfare Queens (ritholtz.com)
- Corporate America profits from food stamps (mobile.wnd.com)