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Author Topic:   Protecting People and Jobs
Jon
Inactive Member


Message 4 of 44 (649959)
01-26-2012 5:41 PM


Increasing Real Value
The alternative is to simply make U.S. products worth people's while so they'll willingly buy them in place of imported goods and despite their increased price.
Jon

Love your enemies!

Replies to this message:
 Message 5 by Perdition, posted 01-26-2012 5:51 PM Jon has replied

  
Jon
Inactive Member


Message 10 of 44 (649975)
01-26-2012 6:38 PM
Reply to: Message 5 by Perdition
01-26-2012 5:51 PM


Re: Increasing Real Value
How do you do this? If a company can do something cheaper, whether it be because of lower wages, or shorter supply chains, or just a larger labor pool in another country, what incentive do they have to stay in the US?
This really deals with two different things:
  • The market for labor, and
  • The market for goods
If the U.S. wants to make its labor market more appealing, it can do things like educate its citizens and provide them with essential skill sets that will make them worth the extra wages. If the U.S. wants to make its products more appealing, it can improve their quality and work toward innovating solutions to serious global problems such as ways to generate energy with minimal pollution output.
These things aren't conceptually difficult. But in practicality they pose quite the challenge. People like Phat will resist with a fiery passion learning new skills or taking on jobs manufacturing products they are unfamiliar with. They'll beller on and on about how it is unfair and suggest nonsense 'solutions' for their competition like "nuking them is a viable option" (Whine & Cheese, # 5).
Implementation of these solutions will face opposition at every turn and corner.
It will not be easy; but it will be worth it.
Obama proposes tax breaks for companies that remain in the US, and that might work if the tax breaks are large enough, but the larger the tax breaks, the less money the government makes and the more they'll have to get elsewhere.
He also proposes a tax on countries that produce items overseas, which might help, but does nothing to help the people that are exploited in other countries.
These aren't solutions, and their only outcome can be a slew of international relations nightmares.
Jon

Love your enemies!

This message is a reply to:
 Message 5 by Perdition, posted 01-26-2012 5:51 PM Perdition has replied

Replies to this message:
 Message 12 by Perdition, posted 01-26-2012 6:51 PM Jon has replied
 Message 16 by Phat, posted 01-27-2012 2:53 AM Jon has replied

  
Jon
Inactive Member


Message 13 of 44 (649980)
01-26-2012 7:33 PM
Reply to: Message 12 by Perdition
01-26-2012 6:51 PM


Re: Increasing Real Value
The problem is, if we can educate our citizens to do them, why can't China do the same, then still have lower wages? There doesn't seem to be anything that America can do to make its workforce more appealing that China or India can't do as well.
Then we educate them more.
Also, if we're talking amnufacturing, the raw materials are often also gotten at a cheaper rate in other countries where mining safety requirements are lower. Again, something addressing working conditions would seem to be needed.
These things cannot be helped. Resources aren't evenly distributed in the world. We can't have all the resources, but that only means we have to try that much harder to increase the global value of the resources we do have.
Often, unfortunately, the most appealing part of a foreign-made object is its price, not so much its quality.
Because the quality differences clearly aren't large enough to warrant the extra price. It only means we have to try that much harder to produce quality products that are actually worth their price.
The people who will effectivly resist innovations like this are Republicans who don't want the government doing anything with the "invisible hand of the free market."
Not at all. I mentioned one type of person who absolutely despises the notion of the U.S. competing with other nations on the ridiculous grounds that it isn't 'fair'. Do not think Phat's mentality is unique to Phat; because it is not.
I think they're a step in the right direction. They won't solve all of the problems, but it seems to be a way to impose tariffs on "American" companies.
Who will want American products if we put up barriers to importing from other nations? A nation cannot import more than it exports and expect no ill from it.
Jon

Love your enemies!

This message is a reply to:
 Message 12 by Perdition, posted 01-26-2012 6:51 PM Perdition has replied

Replies to this message:
 Message 14 by Perdition, posted 01-26-2012 8:00 PM Jon has replied

  
Jon
Inactive Member


Message 15 of 44 (649991)
01-26-2012 8:54 PM
Reply to: Message 14 by Perdition
01-26-2012 8:00 PM


Re: Increasing Real Value
As long as those other sources are cheaper, it will benefit companies to be elsewhere too.
The companies will choose inputs that maximize profits. This does not always mean cheaper labor.
But if modest increases in quality aren't worth modest increases in price, how would a large increase in quality be worth a simialrly large increase in cost.
Why does it have to come with a similarly large increase in cost?
That's why I said "effectively." Phat and others with his mentality do not have any power, except with their vote. But it's the Republicans, who share their ideas or will appear to to court their votes, who would actually be able to stop these changes from being put forth.
Republicans are people too.
Again, Obama's plan only applies to American companies, so it wouldn't affect imports. What it says is if you move your manufacturing center or your help desk off shore, you pay a higher tax than companies that stay in America. Currently, an American company can have its entire manufacturing base in another country and sell its products in America without any tariffs because it's not counted as an import. This balances that.
With that, there's no incentive for a company to have any of its operations in the U.S.
Jon

Love your enemies!

This message is a reply to:
 Message 14 by Perdition, posted 01-26-2012 8:00 PM Perdition has replied

Replies to this message:
 Message 18 by Perdition, posted 01-27-2012 10:17 AM Jon has replied

  
Jon
Inactive Member


(1)
Message 17 of 44 (650047)
01-27-2012 9:22 AM
Reply to: Message 16 by Phat
01-27-2012 2:53 AM


Re: Increasing Real Value
People who make minimum wage in this economy don't have enough disposable income to buy very many i-pads, TVs, Computers, or what have you
Why do people need to be able to buy iPads, TVs, and computers?
A poor kid from the trailer park has the opportunity to get student loans and educational grants while living on food stamps as they attend college. The rich kid also never need worry about bills...since Mommy and Daddy happily pay his education. Only the working middle class...who make just enough to not qualify for many government services...are at a disadvantage IF they dont have a liveable wage.
LOL. I have regularly said that education needs to be provided free through the college level if not beyond.
Lots of people even shop around for cheaper foreign colleges.
And they're free to find a foreign college that is more reasonably affordable because it isn't buckling under the weight of an excessively out of control 'sporting' budget. And we are free to make our universities appealing to prospective students.
Without unions, which raise the wages of everyone to a liveable level, we probably would pay less if we could even find workers who will put up with minimum wage. At my store, they always quit after a month...it simply is not worth it for them to work so hard for so little.
Minimum wage needs to be gotten rid of.
As for the rather personal attacks, I think you are just jealous that an old man like me with no formal education makes more than an educated lad like yourself or your girlfriend. My advice? Wait in line! Your turn will come.
LOL. Do you have any suggestions for helping protect American workers from foreign competition? You seem to think unions are good because they make sure you get paid more despite your lack of education, but what does that do to make the American workforce more competitive?
How is a high-paid, uneducated workforce attractive to anyone wanting to start a business?
Jon

Love your enemies!

This message is a reply to:
 Message 16 by Phat, posted 01-27-2012 2:53 AM Phat has seen this message but not replied

  
Jon
Inactive Member


Message 19 of 44 (650058)
01-27-2012 10:42 AM
Reply to: Message 18 by Perdition
01-27-2012 10:17 AM


Re: Increasing Real Value
Correct. Cheaper raw materials, shorter supply chain are all factors. But they're generally factors that play into outsourcing more then keeping jobs domestic.
You're only focusing on inputs, though. Profit is an equation that subtracts the selling price from the production cost, meaning there are two ways of increasing profit: decreasing production cost and/or increasing selling price.
It probably isn't a 1:1 ratio, but increasing quality tends increase cost. It requires more R&D, more quality control (more emplyees), higher-grade materials, more exacting equipment, etc.
The one thing that doesn't have to increase cost is quality of labor. And that will affect the cost of almost all of the inputs.
Jon
Edited by Jon, : No reason given.

Love your enemies!

This message is a reply to:
 Message 18 by Perdition, posted 01-27-2012 10:17 AM Perdition has replied

Replies to this message:
 Message 21 by Perdition, posted 01-27-2012 11:13 AM Jon has replied

  
Jon
Inactive Member


Message 23 of 44 (650072)
01-27-2012 11:37 AM
Reply to: Message 21 by Perdition
01-27-2012 11:13 AM


Re: Increasing Real Value
In general, higher quality labor demand higher wages, which increases cost to the company.
And those laborers will get exactly what they ask for then: unemployment.
As soon as some people are better trained or educated, they'll ask for higher wages, and once we get everyone to the same level, those wages will be the norm for that position, and any attempt top lower wages will result in strikes or lowered morale.
Which is why I've already mentioned that there is considerable pressure on the workforce to make itself more valuable. If the workers don't want to do that, then they are permitted to sit at home unemployed pretending they are too good for any of the jobs out there.
Yes, a company can increase profit by raising costs, but that tends to drive demand to the cheaper competitor.
Again, not if the increased cost is accompanied by a worth-while increase in quality.
Jon

Love your enemies!

This message is a reply to:
 Message 21 by Perdition, posted 01-27-2012 11:13 AM Perdition has not replied

Replies to this message:
 Message 37 by Phat, posted 01-27-2012 5:03 PM Jon has replied

  
Jon
Inactive Member


Message 27 of 44 (650081)
01-27-2012 12:22 PM
Reply to: Message 26 by Perdition
01-27-2012 12:10 PM


You really think the major international corporations would choose to just leave the American marketplace?
You're missing the point Tangle's trying to make: If the U.S. creates laws that favor keeping manufacturing in the U.S. and restricts imports from manufacturers that don't follow U.S. regulations, then the rest of the world will be encouraged to impose similar restrictions on the import of U.S.-made goods as retaliation measures.
Your proposal is isolationist, and that is not a workable position for a country in this day and age.
Jon

Love your enemies!

This message is a reply to:
 Message 26 by Perdition, posted 01-27-2012 12:10 PM Perdition has replied

Replies to this message:
 Message 29 by Perdition, posted 01-27-2012 1:08 PM Jon has replied

  
Jon
Inactive Member


Message 33 of 44 (650092)
01-27-2012 2:02 PM
Reply to: Message 29 by Perdition
01-27-2012 1:08 PM


In one of my favorite hard sci-fi novels, metanational corporations actually end up being more powerful than countries.
Compared to some countries they already are.
This leads to countries competing to make their corporate climate more corporation friendly, essentially signing away their sovereignty as well as the health of their labor force.
This is a problem beyond the scope of a few tax laws to fix. It's solution will only come from world-wide education and the knowledge that there are better ways to survive than bent over the corporate world's kitchen table.
Jon

Love your enemies!

This message is a reply to:
 Message 29 by Perdition, posted 01-27-2012 1:08 PM Perdition has replied

Replies to this message:
 Message 34 by Perdition, posted 01-27-2012 2:53 PM Jon has not replied

  
Jon
Inactive Member


Message 38 of 44 (650116)
01-27-2012 5:09 PM
Reply to: Message 37 by Phat
01-27-2012 5:03 PM


Re: Increasing Real Value
Do you really think that US workers are gonna take courses to make themselves more valuable and not demand wages to reflect their value?
Then the workers will get what jobs they want: none.
Any company that would dump us in favor of cheaper foreigners ought-ta be rode out of town on a rail.
LOL.
If corporations wont offer us what we want, as consumers we wont give them what they want either.
Which is demonstrably untrue. Consumers continue to favor imported goods over home-made ones, even as they get laid off.
We will simply all work for Walmart.
LOL. You do that.
Jon
Edited by Jon, : No reason given.

Love your enemies!

This message is a reply to:
 Message 37 by Phat, posted 01-27-2012 5:03 PM Phat has not replied

  
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