History of the World----Part 1

[Army_of_One]

Originally Posted by Outofdodge

Explain to me how a small US maker of specialty fishing tackle can lay off an entire US non-union labor group with an average wage of 13.00/hour, move production to China at an average wage of 2.50/hour and raise prices for their premium product?

If the market will let them sell their premium product for a higher price and they can still move that product then I guess the market forces have an impact on that. As far as moving the company to China and paying the workers 2.50 instead of 13.00 and more than likely less taxes and benefits paid also...increases their profit, minus what it takes to ship the stuff back to the U.S. to be sold. Lets see...a business increasing their profits...Sounds like they are using globalization to increase their profits. Is that a bad thing?

[JayhawkMom]

Originally Posted by Army_of_One

If the market will let them sell their premium product for a higher price and they can still move that product then I guess the market forces have an impact on that. As far as moving the company to China and paying the workers 2.50 instead of 13.00 and more than likely less taxes and benefits paid also...increases their profit, minus what it takes to ship the stuff back to the U.S. to be sold. Lets see...a business increasing their profits...Sounds like they are using globalization to increase their profits. Is that a bad thing?

So Army, you're saying you're all for American companies taking jobs oversees as long as they increase their bottom line?

What, American workers should lower themselves to begging for 2.50/hr? Will my tax demands decrease to that level? Will my grocery bill? How about electricity? Gas? How about my childs college education?

I shouldn't ask for benefits? Insurance? My government sure as he!! isn't going to provide it to me......... I'm paying for my benefits, right along with my employer......They pay some, I pay some. That's the only way most of us are gunna get insurance and the like.....I sure as he!! couldn't afford it at 2.50/hr.

[Army_of_One]

Originally Posted by JayhawkMom

So Army, you're saying you're all for American companies taking jobs oversees as long as they increase their bottom line?

What, American workers should lower themselves to begging for 2.50/hr? Will my tax demands decrease to that level? Will my grocery bill? How about electricity? Gas?

I shouldn't ask for benefits? Insurance? My government sure as he!! isn't going to provide it to me......... I'm paying for my benefits, right along with my employer......They pay some, I pay some. That's the only way most of us are gunna get insurance and the like.....

Actually you benefit from globalization. Every time you go to Walmart and buy cheap sh*t (that probably won't last very long) you are taking advantage of globalization. You can buy your t-shirt at walmart for $x.00 because of globalization. SO as a consumer you benefit. Technology and such has made the world much smaller. You can keep your isolationist attitude if you want but the economy is global. The downside is that right now some of the trade rules are unfair but that's always been a problem. Your grocery bill is probably less and most of the things you buy are less because of globalization. You pay less for electronics, shoes, etc because of globalization. When there is competition the consumer wins. If we shut the door to say....FOREIGN owned automakers and GM had no competition from Japan then they would make crappier cars than they already do.

[JayhawkMom]

Originally Posted by Army_of_One

Actually you benefit from globalization. Every time you go to Walmart and buy cheap sh*t (that probably won't last very long) you are taking advantage of globalization. You can buy your t-shirt at walmart for $x.00 because of globalization. SO as a consumer you benefit. Technology and such has made the world much smaller. You can keep your isolationist attitude if you want but the economy is global. The downside is that right now some of the trade rules are unfair but that's always been a problem. Your grocery bill is probably less and most of the things you buy are less because of globalization. You pay less for electronics, shoes, etc because of globalization. When there is competition the consumer wins. If we shut the door to say....FOREIGN owned automakers and GM had no competition from Japan then they would make crappier cars than they already do.

At 2.50/hr, I wouldn't be buying T-shirts, shoes or anything else, cheap or not. One less consumer consuming the crap they build and sell........

[Army_of_One]

Originally Posted by JayhawkMom

At 2.50/hr, I wouldn't be buying T-shirts, shoes or anything else, cheap or not. One less consumer consuming the crap they build and sell........

But $2.50 an hour in say Mexico may be equivalent to $15.00 an hour here. You have to take in consideration the cost of living there. I'm sure a lot of people in Mexico wouldn't mind $2.50 an hour to put together a lure...while people in the U.S. would demand $13.00 and hour and tons of benefits to do semi-unskilled labor. Let me ask you a ?. Why does someone open a business?

[JayhawkMom]

Originally Posted by Army_of_One

But $2.50 an hour in say Mexico may be equivalent to $15.00 an hour here. You have to take in consideration the cost of living there. I'm sure a lot of people in Mexico wouldn't mind $2.50 an hour to put together a lure...while people in the U.S. would demand $13.00 and hour and tons of benefits to do semi-unskilled labor. Let me ask you a ?. Why does someone open a business?

Which is why they're all moving up here........right????

My husband and I had our own business; after paying all the taxes every month, it was more cost effective for us to go back working for someone else.

AND we couldn't afford health insurance!

[Highwayman]

Originally Posted by JayhawkMom

...My husband and I had our own business; after paying all the taxes every month, it was more cost effective for us to go back working for someone else.

AND we couldn't afford health insurance!

Hello! Do we see a problem here?

[Army_of_One]

Originally Posted by Highwayman

Hello! Do we see a problem here?

LOL.....

[Outofdodge]

Originally Posted by Army_of_One

If the market will let them sell their premium product for a higher price and they can still move that product then I guess the market forces have an impact on that. [snip]Sounds like they are using globalization to increase their profits. Is that a bad thing?

Your assertion was that the greedy liberal unions demands for wages were the cause of jobs going overseas. In this case a non union plant was shut down and production outsourced over seas. As the plant was relatively small the numbers of workers displaced did not register more than a blip on the reporting scale.

As to being good or bad, frankly it depends if you're someone who lost their job or had equity. In this business case model, the company may now be dropping the line because instead of a highly sought US made hand crafted piece of equipment in a high margin, low volume business is now being compared to the equipment coming from Asia which typically costs as low as 25% of this product when relabeled and sold through Cabela's or outdoor world.

[Army_of_One]

Originally Posted by JayhawkMom

Which is why they're all moving up here........right????

My husband and I had our own business; after paying all the taxes every month, it was more cost effective for us to go back working for someone else.

AND we couldn't afford health insurance!

Perhaps you should have outsourced and globalized...lol. There ya have it. See, had you embraced globalization maybe you would still be in business. LOL

I'm just kidding, I'm sure there were a lot of contributing factors to your failed business not just one thing....