Outsourcing (True Story)

[J.Otto]

the profits go back to Japan, Korea, & Germany, not here

They sure do. But OUR workers can support their families and trickle money into our economy.

US companies that manufacture outside the borders, keep their savings and allot it to the upper execs, while none of our workers get any nenfit from it. This country has gotten too top-heavy. The upper mangement and their corporation get high salaries and shields it from us taxes.

At least this way, our workers can line their pockets and spend in the us economy.

 

[JohnQ]

Usually seeing some headline with "true story" in parenthesis next to it almost guarantees it is some piece of fictitious BS. I'm sure you could google the exact text of this "true story" and get 10,000 hits.

There may be some good points, but Ford has been solidly profitable for some time now, without government bailouts to boot.

 

[AC560]

US companies that manufacture outside the borders, keep their savings and allot it to the upper execs, while none of our workers get any nenfit from it. This country has gotten too top-heavy. The upper mangement and their corporation get high salaries and shields it from us taxes.

First it is important to point out that 4% of the households in America have incomes over $200K (which a fair chunk of mainline Captains fall into) and 25% of households report $85K and above (a good chunk of everyone else). Every union leader in every industry I can think of falls into that 1% (income $343,927 per annum in 2009) that apparently we are all supposed to hate. Most in the aviation industry myself included aren't exactly what I would call poor or under privileged in America.

Secondly everyone does benefit from manufacturing offshore in the terms of lower costing goods. Low value items like toys, household items, etc. would be 2-3x as much to be manufactured in the US. Even Mexico is not a cost effective solution. Think about it, people make toys in China and put them on airplanes to fly here and be sold and that is cheaper then making the same toy 50 miles away from the store where it will be sold. That is how much cheaper China is and without it pretty much everyone on the Cargo forums here would be employed elsewhere.

What globalization has done is increased everyone's standard of living. A family making $85K a year is arguably living better and longer than a millionaire did 100yrs ago. Just as mass industrialization destroyed the 300 odd car manufacturers we used to have in America, buggy whip makers, the local butcher, etc. So has globalization destroyed a segment of the work force. One can either adapt and retrain or go hungry. Clearly the bug whip makers figured out at some point it was time to do something else and found work in a new field.

The Japanese economy has been in the toilet for the last 20yrs, nice story and it incites the proletariat but it isn't any reflection of reality.

 

[Dumb Pilot]

the profits go back to Japan, Korea, & Germany, not here

Are you sure? How much of the U.S. debt have Japan, Korea & Germany taken on? The health of our economy depends a lot on the health of the economies of the rest of the world, If you want a better example than just a couple of days ago the world bank, China (by relaxing some of their lending parameters) and Germany placed an infusion of funds to try and stabilize the European market, You think that had nothing to do with our economy? think again.

The Japanese economy has been in the toilet for the last 20yrs, nice story and it incites the proletariat but it isn't any reflection of reality.

It has? That is why they were called upon recently to infuse money into the European economy because their economy is in the toilet?

Protectionism is a ridiculous strategy in a global market, quality and innovation is however the way forward, the U.S. has to go back to the days when something that had a label "Made In The USA" meant that it was the best quality product available anywhere in the world, Germany doesn't have cheap labor costs, Japan doesn't either and neither does Korea and they are heavily unionized countries, but they have thrived in a global economy and have become global manufacturing giants, Why? Research and development, a relentless attention to quality, and industrialization. Look at what China is doing now and you will get a glance at to what it takes to go forward in the next 30 to 50 years, they are throwing money at the best minds they can possibly hire from all over Asia and the rest of the world, they are investing in their human resources like crazy with more Chinese young scientists and engineers in school now than all of the western world combined, If you think that they will continue their growth based on making cheap toys then you are very naive. Industrialization, research and development, investment in human resources (and that includes well paid and motivated employees) that will bring back the sense of pride and competition that produces high quality.

 

[Donald]

the profits go back to Japan, Korea, & Germany, not here

Not all of it. They pay our workers with some of it. I'm sure they pay rent, property taxes, maintenance and upkeep of the facility, etc.

I agree it is disgusting that some top execs get huge bonuses when their company is losing money. However, if we are going to make it illegal, lets make sure we hit entertainers as well. The last time I took my family to a professional football game, it cost me $400. I used to go to movies a lot more too.

 

[Dumb Pilot]

I bought a 2008 Toyota...built in San Antonio. Would I have helped our nation more buying a Ford? It's not a rhetorical or smart -ss questions...I really wonder.

[FONT=Arial, Helvetica, sans-serif]When was the last time you took that Toyota to the shop? besides regular maintenance that is, I have a feeling that the economy is not getting too many of your dollars on repairs. We have to go back to the days when we bought American products because they were the best of the best, we have to stop thinking about "protectionism" and all those unrealistic strategies and go back on the attack with quality and production, If we go back to the manufacturing days, the economy will follow, [/FONT][FONT=Arial, Helvetica, sans-serif]transferring to a consumer based economy was a mistake that needs to be reversed[/FONT]

 

[AC560]

It has? That is why they were called upon recently to infuse money into the European economy because their economy is in the toilet?

The Japanese economy is not what I would call a great picture since the mid 80's. Does it remind you of another country which has double digit growth but an overall negative population growth and an aging population that starts with a C and ends with an a?

Are you sure? How much of the U.S. debt have Japan, Korea & Germany taken on?

Japan @ $956B
Korea @ $33B
Germany @ $58B

Roughly $4.7Tn of our @ $15Tn in debt is in T-Bills owned by foreign countries. 99% of Japans debt is owned by Japanese who are retiring and cashing it in, see the problem with owning all your own debt?

[FONT=Arial, Helvetica, sans-serif]If we go back to the manufacturing days, the economy will follow, [/FONT][FONT=Arial, Helvetica, sans-serif]transferring to a consumer based economy was a mistake that needs to be reversed[/FONT]

We are a manufacturing based economy, a highly skilled and expensive one. Where do you think MRI's; Boeing 747-800's; and other exceptionally complicated pieces of machinery get designed and made.

What we aren't is a country which will make a plastic drinking glass for $.0001 per unit. There is nothing an American worker can do to contribute to a better drinking glass, it is purely a price discussion.

What you confuse is the idea if we pay a worker $70 in wages and benefits to make plastic drinking glasses it somehow advances the standard of living. It doesn't it just makes a a drinking glass cost $20 instead of $.50. Don't confuse wages with quality of living.

Warren Buffet is right when he says the best day to be born in America is today. Certainly if you disagree you can always immigrate to China, get there soon so you beat the rush.

 

[Dumb Pilot]

Your lack of understanding what is happening with the world doesn't surprise me, on the mean time we are getting rides to the space station with the Russians.

 

[AC560]

Your lack of understanding what is happening with the world doesn't surprise me, on the mean time we are getting rides to the space station with the Russians.

Clearly somebody in the conversation has a lack of understanding of what is happening in the world but it isn't me. Things are not all that great in any economy these days but the American economy has weathered better than most and continues to be the strongest and best economy in the world with the highest standard of living.

 

[ackattacker]

the profits go back to Japan, Korea, & Germany, not here

A small percentage of the profits goes to pay the executive salaries and corporate headquarters staff in the home county. The rest ultimately goes to the shareholders, which could be anybody anywhere. You can easily buy stock in Toyota and reap the profit as well, it's listed on the New York Stock Exchange.

In this day and age the concept of a corporation having a specific nationality is more a matter of psychology and pride than actual economics.