Through balance sheet juggling you can off shore your profits, and show a break even, or loss here.
1
Do Americans ever compare the same working and wage conditions they do with workers in Germany? Do they get 4 weeks annual paid vacation, maternity leave, or paid sick leave with the jobs?
15
How much are you supposed to make on an assembly line? These workers all learned their jobs on the employer's dime and none of the work requires them to spend the quarter million dollars in tuition that goes hand in hand with an opportunity to make a decent living.
2
Apparently you just dont get it. Other countries are using us just as we have used them. THEM is people who deserve similar compensation and benefits. I think it will be union time soon - long overdue. A little dose of socialism to temper the capitalist oligarchs would be my suggestion - some balance, eh?
Or maybe you enjoy the idea that a German has a better lifestyle performing the same work as an American...
Or maybe you enjoy the idea that a German has a better lifestyle performing the same work as an American...
14
To "make America great again" it's going to take more than union-busting wages and deficient infrastructure. It's a choice between "how do we revitalize the middle class?" and a tendency towards a banana republic. #Sad.
8
These are exactly the mid- skill level jobs Obama and the Dems. helped bring to the South (skilled manufacturung. 3d printing etc.) The same ones Hillary wanted for Coal Country. Obama went on many a tour- also here in NC - to showcase them being implemented.
Doesn't look like any of the people who benefited got the picture. Like the ACA repeal - yet another case of Trump voters waking up to the fact they voted against their own interests.
It's infuriating to see light bulbs just now going off even in the minds Mayors, owners and management. Let em' eat tractors.
Doesn't look like any of the people who benefited got the picture. Like the ACA repeal - yet another case of Trump voters waking up to the fact they voted against their own interests.
It's infuriating to see light bulbs just now going off even in the minds Mayors, owners and management. Let em' eat tractors.
13
Wouldn't have happened under Billary.
2
Workers Comp Carrier for Southeast Mahindra may have something to say if they see the picture of Bill Phillips under a vehicle, hammer nearby, without eye protection.
4
No Unions or oversight in the South. They like it that way.
10
A worldwide workforce has been coveted by the industrialists since the end of ww2. Look up the history of gatt,nafta, and the wto.
2
Hey Patricia Cohen what are your thoughts on this as well. I love foreign investments in America as well.
1
Im sure that the $3 billion in tax breaks given to Foxconn also help a foreign company to compete and destroy small business in America.
Are we really going to have to pay companies like Foxconn over $1000 for every job they create? Whose paying my small business $1000 when I hire an employee? Oh right, no one. In fact, my tax bill gets to go up so my taxes can go to help pay Foxconn to create jobs and funnel the profits back to China.
Are we really going to have to pay companies like Foxconn over $1000 for every job they create? Whose paying my small business $1000 when I hire an employee? Oh right, no one. In fact, my tax bill gets to go up so my taxes can go to help pay Foxconn to create jobs and funnel the profits back to China.
13
Two things stand out in the attached pictures, the rusted out bridge the train is on and the guy laying on his back on the concrete floor doing mechanical work with no gloves. Really great infrastructure on the train pics, and really great safety equipment on the worker.
11
Why does the left so love job killing regulations?
1
Because they keep people healthy and alive.
15
Other reasons for moving to Chattanooga: great BBQ, country ham, river running, whitewater rafting and kayaking, road and mountain biking, climbing, hiking, hunting. fishing, and more sporting opportunities than a New Yorker ever dreamed of.
2
Many people in the South (who usually haven't been to NY ) falsely assume people in NY don'y know what nature is. The Catskills are 1 hour from NY and have all that plus world class trout fishing. They kayak every day right on the newly clean (thanks EPA clean water act) Hudson River in NYC. Nature preserves in the city limits.
Chattanooga - spent some time near the College. Drunk, white frat boys being belligerent is what I remember. Almost all white. Birthplace of the Clan.
No thanks.
Chattanooga - spent some time near the College. Drunk, white frat boys being belligerent is what I remember. Almost all white. Birthplace of the Clan.
No thanks.
6
I agree with the person from WI who was critical of Foxconn & the Jobs that Gov. Walker in the past promised. Also, when the robots take over jobs more-you'll wish you had protection. My comment refers to P. Cohen's ariticle (8/6/17) under Econ. that starts with "When Foreign Co. Are Making...."
1
What about corporate profit reinvestment?
@bnc,
Even the highly hated and despised multinational oil companies reinvest their profits into finding future oil deposits and developing new and hopefully safer and more reliable tools for reaching and extracting the oil from ridiculous parts of the world. I find it hilarious that people feel they have the right to vilify other people and corporations wealth.
Even the highly hated and despised multinational oil companies reinvest their profits into finding future oil deposits and developing new and hopefully safer and more reliable tools for reaching and extracting the oil from ridiculous parts of the world. I find it hilarious that people feel they have the right to vilify other people and corporations wealth.
2
No they don't reinvest! They use government subsidies for that and when they do reinvest they get tax breaks. We the taxpayers pay for what ever "reinvestment" is done. As to safer, what a crock. Corporations don't care about safer...never have and never will. Workers are extendible now more that they have been for decades. We are going back to the 1900s in terms of workers rights!
5
While I understand why the NYT is so worried about tariffs, I have no idea why it is stuck on the whole "Buy American" trope in its reporting. No one is talking about that.
What people ARE talking about is increasing wages, improving working conditions, giving people more say in their work schedules and returning the standard of benefits that once existed in the U.S.
These things have absolutely NOTHING to do with trade policy. The fact that other countries are run as juntas does not mean we should run our country as a junta.
What people ARE talking about is increasing wages, improving working conditions, giving people more say in their work schedules and returning the standard of benefits that once existed in the U.S.
These things have absolutely NOTHING to do with trade policy. The fact that other countries are run as juntas does not mean we should run our country as a junta.
4
What about this ft report
https://www.ft.com/content/c59ff274-297a-3677-9def-5bdccdb54e4f
"Chinese controlled firms employed 141,000 Americans at the end of last year, a 46 per cent increase over 2015 according to new research published on Tuesday"
https://www.ft.com/content/c59ff274-297a-3677-9def-5bdccdb54e4f
"Chinese controlled firms employed 141,000 Americans at the end of last year, a 46 per cent increase over 2015 according to new research published on Tuesday"
2
Obama's fault
1
It seems that the way to bring foreign companies to the U.S. is to get rid of labor unions, loosen worker protection regulations, give big tax cuts, & provide cheap labor. Now, we are the cheap third-world country. Southeast Mahindra pays a wage of $12 and hour with a chance over time to work up to $20 an hour. A $12/hour job brings in a gross of under $25,000 a year. If this income is for a husband & wife with 2 children, it is fractionally over the federal poverty level (by less than $1.00 a day). If you are 2 parents & 3 or more children,, you are working full time & are still below the poverty level. Even $20/hr is below the poverty level with 6 kids. You can't just count jobs & not look beyond to see if the jobs are being created because so much union-busting & deregulation is suppressing wages to poverty wages. We are becoming the same kind of third-world country we have traditionally outsourced jobs to. More people may now be getting essentially menial jobs (in terms of wages, at least), but a goodly share of the companies' profits are going to their home countries, & the tax breaks that lured them here mean little revenue for the US.
In Germany, with one of the strongest economies and trade surpluses, the mean salary for a worker is around $55.00/hr. Yet they compete successfully against all comers. Whether it is cars, electronics, clothing, or parts that end up in "American-made" products, the Germans have no trouble paying a comfortable living wage.
In Germany, with one of the strongest economies and trade surpluses, the mean salary for a worker is around $55.00/hr. Yet they compete successfully against all comers. Whether it is cars, electronics, clothing, or parts that end up in "American-made" products, the Germans have no trouble paying a comfortable living wage.
24
Germany has an emphasis on vocational and technical schools. That paired with a strong education system creates a strong work force. The US does not emphasize vocational and technical schools or public education. With automation making further and further strides jobs in manufacturing will be more and more technically oriented. Therefore a strategy of accepting change and bolstering these education areas in the long run will be a better strategy.
5
Beartooth,
Germany has a total population of Calif, NY, Ill, Florida combined. 4 states out of 50. Also imports into Germany are below exports." In 2015, Germany exported $1.24T and imported $989B, resulting in a positive trade balance of $252B. In 2015 the GDP of Germany was $3.36T and its GDP per capita was $48k." "In 2016, total U.S. trade with foreign countries was $4.9 trillion. That was $2.2 trillion in exports and $2.7 trillion in imports of both goods and services." We have become a nation of imported goods. It seems our biggest export is technology with the end product being produced elsewhere and then imported back in. I know people are going use the US wealthy and corporations are hoarding the profits, but I can guarantee you the same wealthy and corporations are in Germany with the same obscene as people call it profits!
We've become a nation of users instead of producers, and also a nation who feels we are to good to sweat for a honest days pay, we have immigrants for that, legal and illegal!
Germany has a total population of Calif, NY, Ill, Florida combined. 4 states out of 50. Also imports into Germany are below exports." In 2015, Germany exported $1.24T and imported $989B, resulting in a positive trade balance of $252B. In 2015 the GDP of Germany was $3.36T and its GDP per capita was $48k." "In 2016, total U.S. trade with foreign countries was $4.9 trillion. That was $2.2 trillion in exports and $2.7 trillion in imports of both goods and services." We have become a nation of imported goods. It seems our biggest export is technology with the end product being produced elsewhere and then imported back in. I know people are going use the US wealthy and corporations are hoarding the profits, but I can guarantee you the same wealthy and corporations are in Germany with the same obscene as people call it profits!
We've become a nation of users instead of producers, and also a nation who feels we are to good to sweat for a honest days pay, we have immigrants for that, legal and illegal!
7
@Raff,
Actually there are many vocational and technical schools throughout the country. Many are struggling to stay open because of lack of interest. People aren't interested in learning a blue collar trade, and in the Bay Area where you and I live its too expensive for schools to even open, and the ones that have been here are closing.
Actually there are many vocational and technical schools throughout the country. Many are struggling to stay open because of lack of interest. People aren't interested in learning a blue collar trade, and in the Bay Area where you and I live its too expensive for schools to even open, and the ones that have been here are closing.
2
interesting but ahistorical survey of Chattanooga's economic history. What's left out? for starters, this spring the Altom plant closed. It was once a boiler factory called Combustion Chattanooga, and at its height employed 6000 workers. It was even unionized. Such factories paid much more than 12 dollars per hour, in inflation-related dollars. Two of the largest bottling plants in the U.S. were located in Chattanooga, Coca Cola bottling and Johnson Bottling. They are now down to around 600 employees. As a matter of fact, in 2015, the major manufacturers in the Chattanooga area were American. They are companies in fields hard hit by "free trade" -that is, the regime of government directed trade agreements heavily tilted to create profits for investors by increasing the level of exploitation for workers, lowering wages and benefits and discouraging labor organizing. Here's a link: http://www.timesfreepress.com/news/edge/story/2015/aug/01/leaderboard-bi...
It is whirlpool, not Volkswagen, that has been making headlines in TN region by investing in new plants. But this doesn't go along with the story's implication that Trump voting workers are all working for foreign companies. That is because it isn't true.
It is whirlpool, not Volkswagen, that has been making headlines in TN region by investing in new plants. But this doesn't go along with the story's implication that Trump voting workers are all working for foreign companies. That is because it isn't true.
5
$12 an hour works out to about $25,000 a year. Assuming a family with 2 kids, If your rent is $1000 a month and your food is $500, that leaves $7000 for everything else (clothes, gas, utilities, phone, medical co-pays/deductibles..) and that assumes no taxes. Just saying.....
11
I am not sure of your point here, are you justifying $12 salary? it is OK for starter job but one needs to figure out how to get more to raise a family. You leave out the a car, insurance, music lessons, saving for college; at a pinch over $500 per month for everything else is not ideal for sleeping well.
2
You definitely don't live in the south.
Two people with that salary in a house are what the "rest of the country" just calls "Regular People" and are probably o.k. - some not sleeping well and all. It's called life for the 99%
Middle class.
And btw music lessons here are having your Aunt, Uncle or Grampa teach you guitar on the porch. Free.
Two people with that salary in a house are what the "rest of the country" just calls "Regular People" and are probably o.k. - some not sleeping well and all. It's called life for the 99%
Middle class.
And btw music lessons here are having your Aunt, Uncle or Grampa teach you guitar on the porch. Free.
3
$12/hr is $24K per year, less than federal poverty level for family of four. So you can't support a family, save for kid's education, go on modest vacation, etc. on these wages. All of which were possible on union autoworkers wages when I grew up in Detroit in '60s
13
I am amazed on the hate (jealousy) towards union. Yes union contributed but the attacks against are people that may not know the struggles, weekends off or additional pay for weekend coverage for example.
Call a plumber, carpenter or most any trade; cost is usually more for night/weekend and most definitely holidays but too many states are against minimum wage it is astounding; they they have tons of openings at $12 with no takers, then they bemoan the quality of the applicant; no one is going to relocate their family for $12 hr.
Call a plumber, carpenter or most any trade; cost is usually more for night/weekend and most definitely holidays but too many states are against minimum wage it is astounding; they they have tons of openings at $12 with no takers, then they bemoan the quality of the applicant; no one is going to relocate their family for $12 hr.
4
And no property or income taxes so they suck up local infrastructure with no direct contribution. Are they paying any federal income taxes on their profits as say Apple does on profits in Ireland. And Tennessee has serious health care issues among less affluent state residents because they opted not to expand medicaid.
Personally I would prefer the rules for people benefitting from unions but not paying dues be this.
If you do not pay dues, as in "right to work" fine. You lose all union negotiated benefits - pay, benefits and a union Rep for disciplinary issues.
You, infividually, negotiate with mgt for every thing all by your self. Of course you can bring an employment lawyer with you but you have to pay. It would be interesting to see how that works out for the parasite class.
Personally I would prefer the rules for people benefitting from unions but not paying dues be this.
If you do not pay dues, as in "right to work" fine. You lose all union negotiated benefits - pay, benefits and a union Rep for disciplinary issues.
You, infividually, negotiate with mgt for every thing all by your self. Of course you can bring an employment lawyer with you but you have to pay. It would be interesting to see how that works out for the parasite class.
4
The tax cuts are there to balance out the competitive disadvantage of American manufacturing companies caused by higher labor costs, much like a tariff but in the form of a subsidy. It makes sense if used as a tactic to buy time, while workers retrain to transition into higher-value jobs. Manufacturing wages will never keep up with rising costs caused by increasing and more concentrated wealth levels, larger income inequality and the structural economic shift towards higher-earning labor-light industries. We all agree that technology calls for a more nimble work force. If American laborers are not quick to change, then they will rely on protectionism (immigration, tariffs etc..) or welfare to survive; all of which are not good for the overall health and future of the US economy.
2
ok, so the slogan just needs to change from "buy American" to "buy American built"...message remains the same, create jobs here in the U.S. regardless of if the multinational corporation is U.S. or foreign based.
4
And foreign firms pay income taxes here and local property taxes here.
2
Do they? most times we hear of these international companies landing on our shores with huge concessions, companies then realize they have been had; because they are expecting a higher level of education for their applicant pool, then these companies try to entice graduates and experience talent from other states to learn that TN is not exactly where youth/talent flock to.
2
This article illustrates the difference between politics and reality. Trump charged up his base with slogans and hats, but his policies when put into action will actually hurt the same people who supported him. The sad part is that they don't know the reality, and are persuaded by the con. The weird part is that all these smart guys like Bannon, Trump, Miller and Kushner either don't understand or don't really care about Americans.
21
They belong to the "me only" class of people. As long as they are getting what they want, no one else matters.
3
Do the tax concessions and increased service costs on the affected states compensated by commensurate improvement in education and health care? Is Tenn. just another third world country giving its human resources for "a few beads."
10
“it’s still a job,”
Will one day replace "e pluribus unum."
Will one day replace "e pluribus unum."
10
Trump isn't denying that globalization exists. He's advocating for a stronger US hand in globalization and better protections for the American worker. This article makes little sense to me.
1
Ha.
Sell that story to people that are not aware that Trump is all for staffing his properties with low wage imported workers, he has not even made a token effort for MadeInAmerica for his own properties. And his better protections; his art of the deal has failed with the jobs he and Pence claims to have created cost the states large amounts of money... Carrier is an example.
45 track record of everything from Trump University to importing labor to build his properties does not support your argument in the lease.
Yep he talks a lot; most of it lies; let us work in facts, something that can be documented.
45 is a Charlatan by choice.
Sell that story to people that are not aware that Trump is all for staffing his properties with low wage imported workers, he has not even made a token effort for MadeInAmerica for his own properties. And his better protections; his art of the deal has failed with the jobs he and Pence claims to have created cost the states large amounts of money... Carrier is an example.
45 track record of everything from Trump University to importing labor to build his properties does not support your argument in the lease.
Yep he talks a lot; most of it lies; let us work in facts, something that can be documented.
45 is a Charlatan by choice.
6
Joke, this article.
All att slave labor wages.
All att slave labor wages.
7
Ridiculous remark. What is the feel good" wage rate for light assembly?
1
Slave-labor wages for Massa-Taxa-chusetts, but living-high-on-the-hog wages here in low-cost-of-living, no-income-tax Tennessee. Taxation is theft (https://www.libertarianism.org/columns/is-taxation-theft) just as slavery was theft when it was lawful in America and endorsed in the Constitution. The slave masters relationship to the slaves was nearly identical to your relationship to your tax master politicians and bureaucritters up there in Yankee-doodle land. Of course Tennessee has its own taxaholics in Nashville, who have instituted the highest sales tax in America.
Anything under 20 dollars an hour is slave labor.
2
Hello, Puerto Rico. This is the " Tennessee Plan" that the Rossello government should be pursuing and implementing ASAP. This, in contrast to the silly charade currently staged in the DC Resident Commissioner's office, is a current update on globalization and competetive business practices that the island would do well to emulate as opposed to scratching around DC for Medicaid and other marginal welfare remnants.
2
No sane person in Wisconsin is holding her breath for 3,000 jobs out of any Foxconn deal. The operative word when it comes to this "entity" is CON, not actual job creation. By the way Scotty, still waiting on those 250,000 new "jobs" you promised us back in 2010. As for the South having this manufacturing boom and workers thinking they don't need unions, just wait until they start to get replaced by robots, one by one, then by the hundreds. Coming to a factory near you, much sooner than you think, you foolish, foolish short-sighted people.
15
Wisconsin signed a "right to work" law in 2015 basically neutering labor unions. It is no coincidence that FoxConn found WI so attractive. Like their Tennessee industrial neighbors, FoxConn can pay workers slave wages and provide minimal benefits while maximizing profits. All with a $3 billion state "incentive" package which is projected to PAY FoxConn $250 million a year in state taxpayer funds for decades. Not to mention being exempted from state environmental regulations Wake up, America. Why do you think these foreign companies are moving to the U.S.? Lower wages and benefits than they have to pay in their own countries. Little to no regulations compared to their own countries. And fat "incentive" programs that lower their operating costs compared to their own country. The U.S. is just another third world country to them.
5
You're so correct. W know in WI what's happened in this state & that Trump, Walker, and Ryan used the Foxcann by Taiwan (China corp) deal to insure Walker & Ryan's winning the next election. That Tax Burden of $3 Billion is going to cost WI Taxpayers a lot more than reazlized.
1
Kind of ironic that the caption on the last picture starts with 'Chattanooga's reliable utilities and infrastructure' with the picture showing rusty railroad cars on an old rusty railroad bridge looking like it's ready to fall into the river. And no more talk of infrastructure from you know who!
12
Yes they have jobs but gave up all and any corporate contribution to the infrastructure needed by that foreign firm. Hope the taxes paid by workers make up for it.
4
To amplify what R. said... It's easy to imagine a world in which Big Business runs just about everything, without having to take social and financial responsibility for its presence in a community.
6
We need tax cuts for business so money that is overseas will remain here. Please tell the democrats as they do not understand business.
1
Democrats do understand business. They also understand the need for all Americans to have access to health care.
4
Don't you just love it how we are so proud that our workers can be mistreated, underpaid and exposed to unhealthy conditions just like in China! I'm so proud.
It's a "selling point" that workers have no rights! German companies like Volkswagen thrive in German with unions and strict environmental and other proctects for human beings but we are happy to tell them come to the US our workers are less important than yours! Do what you want to them.
The subsidizing of FOXON to the tune of $3 billion plus is an appalling example of how morally bankrupt we've become. Do you know what they did when employees started committing suicide because of work stress? Change the environment? No, they put up nets to catch them when they jumped. Yep, just the kind of employer we need. "God bless America!"
It's a "selling point" that workers have no rights! German companies like Volkswagen thrive in German with unions and strict environmental and other proctects for human beings but we are happy to tell them come to the US our workers are less important than yours! Do what you want to them.
The subsidizing of FOXON to the tune of $3 billion plus is an appalling example of how morally bankrupt we've become. Do you know what they did when employees started committing suicide because of work stress? Change the environment? No, they put up nets to catch them when they jumped. Yep, just the kind of employer we need. "God bless America!"
19
Yes - the subsidy comes to $66,666.67/job per year for 15 years. And a highway has to be built at taxpayer expense (I am betting it will be classified as some part of the Interstate system to qualify for federal gas tax dollars), and city water, sewer, electricity, solid waste pick-up.
Will FOXCONN pay any income taxes.
It will be interesting to see how it all plays out.
Will FOXCONN pay any income taxes.
It will be interesting to see how it all plays out.
2
Now we need an article about the American job creators who keep getting all those tax cuts.
6
They come here especially to the southeastern states due to cheap uneducated labor. States who hate labor unions. Sweetheart tax incentives. Illegal immigrants we sort of look the other way. If they come here it is because it is making a profit for them in their country. Would you rather have your car made in Japan or Tennessee???? Germany or South Carolina. Sweden or Alabama. Most American cars And trucks cannot get past 100k without falling to pieces. Shoddy quality control and cheap Chinese knock off grey market parts. Sure it all looks great to the trumpets but don't be fooled. This isn't your fathers Oldsmobile.
7
Then again trump berated Ford for building a new plant and moving production of the Focus to Mexico, So Ford complied and gave up on building the billion dollar Mexican plant. They're now moving Focus production to China.
2
It's hugely ironic that companies are locating in the US union "free" south and partly doing so for the lower wages and benefits. The American union worker in the north priced himself out of the global market when for decades he went on strike for higher wages so that in the end assembly line workers at Ford were making huge salaries totally out of synch with their high school qualifications. Meanwhile business shifted to Asian countries and Mexico paying far less. The US complains they pay workers too little whereas the real story is that the US pays its workers too much, or did so u tilt the revamping of the industrial contract and move to the US south. Blame the unions for all this. Greedy u union bosses made fat cat salaries while they priced American workers out of the global market.
1
Alan - and these states, who uniformly did not expand Medicaid, have the sickest, poorest, least educated populations at large in the nation.
When workers are injured or disabled or killed on the job by unsafe work conditions these firms dump the no longer usable workers on the state. They dump them, hire a replacement and move on. Are you really okay with that. It is what the do in their own countries after all.
Do you really want to give up municipal water, sewers, fire protection, law enforcement, interstate highways? What exactly will you forego to get your pork chop or auto a littler cheaper.
When workers are injured or disabled or killed on the job by unsafe work conditions these firms dump the no longer usable workers on the state. They dump them, hire a replacement and move on. Are you really okay with that. It is what the do in their own countries after all.
Do you really want to give up municipal water, sewers, fire protection, law enforcement, interstate highways? What exactly will you forego to get your pork chop or auto a littler cheaper.
1
Yes trade is good, and there are winners and losers in every business era and cycle.
The issue is really what is a nation for, and how does a nation treat its winners and losers in the see saw of trade.
Ideally A nation would give healthcare, schooling, basic food & shelter to all. The winners can pay extra themselves for the 100 million dollar homes, eat in over priced restaurants, fly in private planes, pay for concierge doctors etc etc etc. The "loosers" in the trade game, in a democratic nation, get the chance to keep their health and their family's, get retrained and try something else. Sounds simple; but, the Democrats and Republicans have not figured it out yet.
The issue is really what is a nation for, and how does a nation treat its winners and losers in the see saw of trade.
Ideally A nation would give healthcare, schooling, basic food & shelter to all. The winners can pay extra themselves for the 100 million dollar homes, eat in over priced restaurants, fly in private planes, pay for concierge doctors etc etc etc. The "loosers" in the trade game, in a democratic nation, get the chance to keep their health and their family's, get retrained and try something else. Sounds simple; but, the Democrats and Republicans have not figured it out yet.
1
All those Trump supporters and so-called nationalists who have a knee-jerk reaction whenever they hear the word 'GLOBALIZATION', have no clue that it's not the boogeyman. And besides that, it's here to stay.
On the one hand, since the U.S turned into a consumer nation instead of a manufacturing one, it has lost out on the world market -- a slot that countries like China, India, and Viet Nam have been more than willing to fill.
And on the other hand, by often having an largely unqualified worker-base, many of the newer high-tech jobs have simply been difficult to fill.
No sense in blaming foreign companies where we just fail to pick up the slack.
Time to get to work.
On the one hand, since the U.S turned into a consumer nation instead of a manufacturing one, it has lost out on the world market -- a slot that countries like China, India, and Viet Nam have been more than willing to fill.
And on the other hand, by often having an largely unqualified worker-base, many of the newer high-tech jobs have simply been difficult to fill.
No sense in blaming foreign companies where we just fail to pick up the slack.
Time to get to work.
1
A point to keep in mind is public infrastructure investment or not. China, rest of South East Asia, Philippines, India, South and Central America, Mexico, Midfke East (excluding Israel) and all of Africa have one thing in common.
Their governments do not and never have invested in public infrastructure as Western European countries, Canada, & USA have. Chronic gross corruption by elected officials and their friends and family syphon off money for self enrichment.
A proper use of tariffs is to penalize that refusal to invest in their own citizens at large. These serve to internalize the externalities these countries dump on everyone else.
Do you really want to drop municipal infrastructure until you do not have running water in your home? Or sewer service? Public schools? Law Enforcement? Fire Protection? EMTs, paved streets or side walks? Interstate highways?
What do you want to give up to get an iPod or pork chop a few cents cheaper? List them out. I would be fascinated to know.
Their governments do not and never have invested in public infrastructure as Western European countries, Canada, & USA have. Chronic gross corruption by elected officials and their friends and family syphon off money for self enrichment.
A proper use of tariffs is to penalize that refusal to invest in their own citizens at large. These serve to internalize the externalities these countries dump on everyone else.
Do you really want to drop municipal infrastructure until you do not have running water in your home? Or sewer service? Public schools? Law Enforcement? Fire Protection? EMTs, paved streets or side walks? Interstate highways?
What do you want to give up to get an iPod or pork chop a few cents cheaper? List them out. I would be fascinated to know.
@Tominey
I repeat. Globalization isn't the enemy.
An uneducated and untrained American work force is.
And if you think this country has kept up with maintaining its infrastructure, I suggest you read about the subway and rail problems we're currently experiencing here in New York.
I repeat. Globalization isn't the enemy.
An uneducated and untrained American work force is.
And if you think this country has kept up with maintaining its infrastructure, I suggest you read about the subway and rail problems we're currently experiencing here in New York.
Local content ratio is vital. I notice there are no figures cited in the article. Did the reporter even ask? Did everyone decline to answer?
2
This story is correct but boy, New York Times, your biases are showing. Ricardo "proved" and many have elaborated on the fact that free trade creates greater material wealth and, along traditional definitions of economic benefits, benefits everyone. But no one has shown that free trade served the environment or that free trade creates the best distribution of economic opportunities across labor inputs. The Times and its readers comments eviscerate Wal-Mart at every opportunity but now because Trump is against it we're all for free trade? Really?
It's a lot more complicated than this sophomoric piece allows.
It's a lot more complicated than this sophomoric piece allows.
time and again these articles from the nytimes are deceiving and not true in many instances. we can't believe the nytimes anymore. they are fake news and I say this because you read anything from these people and the firsts rating that comes to mind is: are they being honest and truthful? is what is being said here true or another barbaric and brutal attack by the nytimes to what journalism should be?
1
Let the US congress keep up with sanctions, and you will sooner or later find that those other countries will see to that the US is just cutting the branch they sit on. Trying to tell others who you shall deal with is never a particularly smart strategy!
1
Automation is relentless. Resistance is futile. Even Chattanooga will be assimilated.
1
Trump touts the new Toyota/Mazda collaboration, yet they intend to build electric vehicles, just what his friends the Kochs are fighting to suppress.
Oh, the irony!
Oh, the irony!
4
Of course all these foreign companies are locating in the south, Trump country, where workers are both ignorant and desperate, and will build tractors and cars for $12.00 an hour. Randy Topping says, his is a close margin business. Let's take a look at his home, what he drives, where he vacations, and then we'll see if it's a close margin business or if he's just taking advantage of workers with few other options.
10
Just another unsophisticated guess here, but I'd wager that the economic complexities of contemporary global commerce lie a tad outside the mental wheelhouse capacity of the big wheel in today's White House.
4
They have better internet than other States where cable companies are giving you the slowest speeds possible and fiercely fighting the likes of Google.
3
Chattanooga has a Democratic mayor who has turned the city into a progressive and clean "Best Place to Retire" oasis.
As an example of how such forward-thinking can have an effect, look no further than the fact that a few years ago, Volkswagen workers nearly voted to unionize, i.e. there was a very slim window between "yes" and "no."
There's no going back, conservatives. Progress takes time, but it eventually takes hold firmly and permanently, certainly more so than does the conservatives' get-rich-quick carnival barker approach to public service.
Then again, if conservatives' ideas are as good as they claim, let's ungerrymander all districts and tally the votes accordingly.
What could possibly go wrong for you, conservatives?
As an example of how such forward-thinking can have an effect, look no further than the fact that a few years ago, Volkswagen workers nearly voted to unionize, i.e. there was a very slim window between "yes" and "no."
There's no going back, conservatives. Progress takes time, but it eventually takes hold firmly and permanently, certainly more so than does the conservatives' get-rich-quick carnival barker approach to public service.
Then again, if conservatives' ideas are as good as they claim, let's ungerrymander all districts and tally the votes accordingly.
What could possibly go wrong for you, conservatives?
5
Globalization will continue whether Mr. Trump wants it to or not, because it's good for business.
Every high school and college student needs to take a field trip to the ports at Charleston, Savannah, Long Beach or Seattle. By and large the 3000 foot ships come into the harbors full of products and they leave either empty or full of raw materials. Metaphorically the ships leave with our money and our jobs.
The US has been economically 'raped' for two generations and then you write a story highlighting one state who has benefited with low-wage jobs. What about the millions of jobs lost at Ford or GM plants or the Joe hm Deere or Case factories. It was theose manufacturing jobs that built the middle class and it has been the loss of those manufacturing jobs that is destroying it. Does anyone believe that $12.00 an hour, $480 a week $28,000 a year is middle class?
The US has been economically 'raped' for two generations and then you write a story highlighting one state who has benefited with low-wage jobs. What about the millions of jobs lost at Ford or GM plants or the Joe hm Deere or Case factories. It was theose manufacturing jobs that built the middle class and it has been the loss of those manufacturing jobs that is destroying it. Does anyone believe that $12.00 an hour, $480 a week $28,000 a year is middle class?
6
28K isn't much to support one's family, but don't forget that (so far unless Trump, Ryan, McConnell etc have their way which will make matters even worse) you might be eligible for food stamps and medicaid (I assume that the benefits are as meager as the salary). So these Tennessee jobs are in fact highly subsidized in addition to the tax cuts they already enjoy to settle there.
Also what will happen when nearly everything is robotized?
Also what will happen when nearly everything is robotized?
5
Actually, Donald Trump is responsible for the low unemployment rate in Tennessee. Just ask him. (sarcasm)
2
US multinational companies are opening factories around the world. Foreign companies do the same. In a world where shareholders of Ford may live in India or Italy and shareholders of Nissan may live in Miami we should welcome these factories with open arms. I think the real source of objections are the labor unions which hate the fact that all these factories are built in the right to work south and their attempts to unionize have been universally dismal failures. That these are good paying non union jobs just shows the ever increasing irrelevance of private sector unions in our country.
1
The Republicans claim they want government out of our lives (except, apparently when it comes to women's health) yet Trump is out there threatening huge tariffs, boycotting foreign manufacturers (unless they make his stuff), and insulting countries like Germany. After reading this article, it sounds like the local business owners and workers know far more about foreign trade than the "great deal maker" knows. Maybe Trump should butt out until he reads up on actual international trade.
4
It seems that "first world" companies moving operations to low-paying ("low cost") jurisdictions to set up shop now works globally. The shift drove down labor costs in the first-world countries, and now companies internationally are opening operations in the US and other Western countries to take advantage of lower costs. The playing field is being leveled.
The goals of globalization are therefore being realized: distribution of decent jobs to all nations; a rise in middle classes worldwide, not just in the original "developed" countries; and improved economies in previously poor countries, along with stronger government tax bases, which leads to improved educational opportunities, infrastructure and so on.
An invisible benefit is the humbling of the former "first world" populations (with predictable resistance) and the elevation of the former "third world" populations (with predictable enthusiasm).
Now, if the "first world" countries can focus on pacifying conflict in the wilder remaining regions instead of fomenting it and destabilizing entire societies for their own geopolitical advantage, maybe even the world's most intractable regions will come along as well.
In this light, Trump looks like King Canute standing in front of his faithful followers on the shore and ordering the incoming tide to reverse itself (the important difference being that Canute knew it was futile).
The goals of globalization are therefore being realized: distribution of decent jobs to all nations; a rise in middle classes worldwide, not just in the original "developed" countries; and improved economies in previously poor countries, along with stronger government tax bases, which leads to improved educational opportunities, infrastructure and so on.
An invisible benefit is the humbling of the former "first world" populations (with predictable resistance) and the elevation of the former "third world" populations (with predictable enthusiasm).
Now, if the "first world" countries can focus on pacifying conflict in the wilder remaining regions instead of fomenting it and destabilizing entire societies for their own geopolitical advantage, maybe even the world's most intractable regions will come along as well.
In this light, Trump looks like King Canute standing in front of his faithful followers on the shore and ordering the incoming tide to reverse itself (the important difference being that Canute knew it was futile).
1
Seems the only "humbling" you speak of is happening in the middle and lower working classes.
Given that they didn't design the policies you cite, do they deserve this.
Your analysis seems quite callous.
Given that they didn't design the policies you cite, do they deserve this.
Your analysis seems quite callous.
1
How else do you think former third-world countries could ever enjoy the benefits of higher levels of decent-paying employment? Do you prefer things the way they were, when the world was harshly divided between the haves and the have-nots? That would be callous in my view.
Sharing the wealth only sounds callous to those who don't think they need to give up anything so others may benefit.
Blaming the undeniable pain of the shift for middle- and-low income Westerners on the so-called elites who make policy and/or own the companies is misguided. Of course the few benefit more than the many and of course some are immune to the shift in wealth and opportunity. The universe isn't "fair."
"Humbling" isn't a bad thing; it just means losing one's sense that one is better or more deserving than others. That puts you in a better place than those among the "elites" who still think they're superior (not all do).
Sharing the wealth only sounds callous to those who don't think they need to give up anything so others may benefit.
Blaming the undeniable pain of the shift for middle- and-low income Westerners on the so-called elites who make policy and/or own the companies is misguided. Of course the few benefit more than the many and of course some are immune to the shift in wealth and opportunity. The universe isn't "fair."
"Humbling" isn't a bad thing; it just means losing one's sense that one is better or more deserving than others. That puts you in a better place than those among the "elites" who still think they're superior (not all do).
Looks like the world will wind up with "communism" of the corporate/capital kind. A few worldwide companies that are run by socially unconscious people who will do anything for profit. When they decide they it's no longer "profitable" to create something they will simply close down the operation.
Does this sound like the kind of world YOU want to live in? Not me. The answer is for local governments to take over the BIG corporations in their towns/cities and create true employee-owned companies where everyone shares responsibility and profit equally. Janitors care just as much about the success of a company - maybe more - than the CEO because they have to feed their families.
Another answer is employee/corporate councils where all have an equal say in the direction of a company.
One thing is certain. Only destruction will come if we allow unbridled, unregulated capitalism to flourish as it's done since Reagan. Who knew that the Robber Baron's real goal was/is to destroy America?
Now we know.
Does this sound like the kind of world YOU want to live in? Not me. The answer is for local governments to take over the BIG corporations in their towns/cities and create true employee-owned companies where everyone shares responsibility and profit equally. Janitors care just as much about the success of a company - maybe more - than the CEO because they have to feed their families.
Another answer is employee/corporate councils where all have an equal say in the direction of a company.
One thing is certain. Only destruction will come if we allow unbridled, unregulated capitalism to flourish as it's done since Reagan. Who knew that the Robber Baron's real goal was/is to destroy America?
Now we know.
14
Perhaps you are recommending a Venezuelan model?
sjaco,
There is an "in between", don't be obtuse.
Multi-national corporations owe allegiance to no country.
There is an "in between", don't be obtuse.
Multi-national corporations owe allegiance to no country.
3
Yes, I see your logica, how could I have not seen it. The janitor contributes equally to the sales succes adnr evenue of a company as the marketing department or the CEO with his 70 hour work weeks
The world is far too complex for Trump's simplistic "America First" mindset. Who would have thought that global economics could be so complicated?
7
My problem is this -and yet this author barely touches on the subject; politicians handing these conglomerate foreign entities, egregious and insidiously hurtful over-the-top tax breaks which only further emboldens them down the line to behave, act in the most tax-avoiding, worker unfriendly ways that they believe they can legally get away with. The message? Come and invest in America- we will practically pay YOU to come here, and our hugely loop-holed pro-business political system will absolutely help you waive your middle finger at both the workers AND their crumbling infrastructure, but more importantly, their failing, and deeply underfunded public schools.
I don't think anyone is truly 'against' foreign business investment in simple terms. Me included. But we need a leader who understands the dangers inherent in giving carte blanche, tax-free foreign access to our workers, and our society. We've already found out how nasty the communist Chinese operate. Do we really want to ramp up giving such easy investment access where danger exists for being turned into the next third world nation.
I don't think anyone is truly 'against' foreign business investment in simple terms. Me included. But we need a leader who understands the dangers inherent in giving carte blanche, tax-free foreign access to our workers, and our society. We've already found out how nasty the communist Chinese operate. Do we really want to ramp up giving such easy investment access where danger exists for being turned into the next third world nation.
31
Spot on. Too many Americans do not realize what separates third world economies from first world economies is intellectual property. Merely assembling something on the US does not bring about the same prosperity as designing something in the US. The race to the bottom with states starving education to get firms to settle in the state because of tax breaks, will damage the US in the long run. The Fords, Boeing's, Microsoft's and GM's need engineers and all
sorts of techies. Following the business and societal model described in the article will make that problematical.
sorts of techies. Following the business and societal model described in the article will make that problematical.
8
I don't think anyone is truly 'against' foreign business investment in simple terms. Me included. But we need a leader who understands the dangers inherent in giving carte blanche, tax-free foreign access to our workers, and our society...............'
...............
Perhaps this makes more sense if we get a follow-up article detailing this in reverse. How many American companies have set up shop in Germany or France or Ireland and what do they do and how is their presence offset in that environment.
The long term problems with "outside investment" is that there is influence creep--just like the "chain-immigration" that Americans complain about and soon enough there is simply nothing American left. It isn't that we are against others--we just don't want to be replaced in toto. What are the limits we have established? What are the national policies employed to prevent being over-run?
NYTIMES, this is a start but explore this topic to see if there is a quid pro quo. Apparently not with Germany but many people around the world don't waste money buying the kind of junk we do, they live in smaller spaces and generally things are more expensive.
...............
Perhaps this makes more sense if we get a follow-up article detailing this in reverse. How many American companies have set up shop in Germany or France or Ireland and what do they do and how is their presence offset in that environment.
The long term problems with "outside investment" is that there is influence creep--just like the "chain-immigration" that Americans complain about and soon enough there is simply nothing American left. It isn't that we are against others--we just don't want to be replaced in toto. What are the limits we have established? What are the national policies employed to prevent being over-run?
NYTIMES, this is a start but explore this topic to see if there is a quid pro quo. Apparently not with Germany but many people around the world don't waste money buying the kind of junk we do, they live in smaller spaces and generally things are more expensive.
2
I note that the top ten investing countries in Tennessee are all, without exception, developed democracies. Their populations, put together, are less than half of China's.
China, despite its rhetoric about moving away from export dependency, has great plans to dominate the world in a long list of crucial products, Made in China 2025. It's official policy.
Bringing China into the global trade regime in hopes of either 1) changing China from within or 2) western firms making money there, was the single biggest mistake we ever made.
China, despite its rhetoric about moving away from export dependency, has great plans to dominate the world in a long list of crucial products, Made in China 2025. It's official policy.
Bringing China into the global trade regime in hopes of either 1) changing China from within or 2) western firms making money there, was the single biggest mistake we ever made.
6
It's significant that this article uses Tennessee as its focus. These companies go to low-wage, low tax, non-union places throughout the south. They are courted with huge public subsidies, "regulatory relief", and infrastructure. The companies exploit the desperation of the people and fecklessness of their representatives to negotiate a sweetheart deal.
No doubt these people need jobs and community stability. But these kinds of deals perpetuate the south's historic penchant foe poor public services and low educational and health quality by letting companies off the hook for paying their fair share.
No doubt these people need jobs and community stability. But these kinds of deals perpetuate the south's historic penchant foe poor public services and low educational and health quality by letting companies off the hook for paying their fair share.
33
Actually, these kinds of deals bring jobs and help Southern cities like Chattanooga thrive and become model places to live. And urban school districts in NJ - Newark, Paterson - are some of the most well-funded in the nation.
1
Yes, the only answer is for local lawmakers to DEMAND social corporate participation through serious taxation to help pay for the infrastructure. Otherwise WE are simply paying for the "jobs" they bring and when they leave WE are stuck with the damage - both economic and social. Otherwise the entire United States of America will look like Detroit.
We must demand that they stop allowing destruction of OUR towns and cities with corporate welfare. We can clearly see the toll it takes on OUR society.
We must demand that they stop allowing destruction of OUR towns and cities with corporate welfare. We can clearly see the toll it takes on OUR society.
3
This is exactly what American companies have been doing in third world countries for decades. " When the shoe is on the other foot "
To deny globalization is to deny reality. Even Trump, who preached bringing jobs back to America, manufactures his products overseas. As globalization continues, and overseas workers begin to push for a fair wage and working conditions, the balance between countries will begin to be restored. The process will be slow, but globalization cannot be denied. Our government needs to use some critical thinking to plan for our place in the future of a globalized economy rather than hanging on to nationalism.
10
"overseas workers begin to push for a fair wage and working conditions, the balance between countries will begin to be restored."
Do you realize how long that's gonna take? Meanwhile parents watch their children's living standards go backwards?
Why is it a given that a worker here has to compete with a worker in China, where, even though wages have risen they are still a fraction of what they rose to here AND those workers have no benefits. Their ability to "push for a fair wage", as you say it, is illegal in that country.
Please note the top ten investing countries in the table are all developed economies with wages comparable to our already.
Do you realize how long that's gonna take? Meanwhile parents watch their children's living standards go backwards?
Why is it a given that a worker here has to compete with a worker in China, where, even though wages have risen they are still a fraction of what they rose to here AND those workers have no benefits. Their ability to "push for a fair wage", as you say it, is illegal in that country.
Please note the top ten investing countries in the table are all developed economies with wages comparable to our already.
1
Why Democrats didn't emphasize how many jobs had been created by foreign car makers when Trump was claiming foreigners were stealing our jobs still bewilders me.
10
“You Get What You Pay For”. Another shining example of voting against your own interests. Hamilton County, TN votes for Trump knowing full well that eliminating trade agreements and imposing tariffs on imports would have a severe negative impact on Chattanooga’s businesses and employment. But they went ahead and supported the candidate that promised to do just that. And if Trump were to run again in 2022 and Chattanooga’s unemployment rose to 7% because of tariffs and import restrictions, would they vote for him again. Absolutely!
Just can’t get my head around why they do this.
Just can’t get my head around why they do this.
25
The picture of rusted overpasses and dilapidated rail cars don't spell reliability. Rather it emphasizes the need for infrastructure repair, improvement, and development if American business are to succeed. The idea of buy American is just more hot air unless we gather the political will (higher taxes) to address those needs and invest in the future.
16
I had the same thoughts. That bridge looks like WPA era construction.
1
Glad we could help!
1
Thank you. Now you had better help yourselves.
Good luck with BREXIT.
Good luck with BREXIT.
I always wonder about comments about "where do the profits go" when foreign companies invest in the US? They go to shareholders and where capital investments are made. Let's take Toyota and GM. An American can buy the stock of both companies. If the Toyota is made in Kentucky, a capital investment is made and the people who work there go home to a house made in America and buy things in stores employing Americans and eat in restaurants employing Americans.
Now let's take two Buicks, both designed in Asia, one made in South Korea, the other in China? Would someone please tell me how buying one helps the American worker and American economy? I would really love to know how this is rationalized. The reality is, we are in a global economy. Companies like GM are not American companies, they are multinationals headquartered in the United States with no allegiance towards any citizenry. Do you really care if their CEOs have another dime in their pockets?
Now let's take two Buicks, both designed in Asia, one made in South Korea, the other in China? Would someone please tell me how buying one helps the American worker and American economy? I would really love to know how this is rationalized. The reality is, we are in a global economy. Companies like GM are not American companies, they are multinationals headquartered in the United States with no allegiance towards any citizenry. Do you really care if their CEOs have another dime in their pockets?
26
The question goes to where the capital reinvestment occurs. If you don't have the physical infrastructure, there is no maintenance, no local taxation for local infrastructure, payroll taxes to fund SS/Medicare and no spending locally for housing, schools, etc.
There is this idea that it is possible to have a large contingent of workers that are run remotely from half way around the world. Anyone who has tried to do this knows how difficult this. When you have a local work force, you also develop local expertise in management and technical trades. There is a self-reinforcing dynamic. If you are just an academic and you think that people are cogs, this is something that is missed. People are not interchangeable and and they are not infinitely adaptable.
You can make any stupid theory work as long as you remove all real world constraints that would make it fail. I suggest you actually try to do it yourself before making any broad statements.
There is this idea that it is possible to have a large contingent of workers that are run remotely from half way around the world. Anyone who has tried to do this knows how difficult this. When you have a local work force, you also develop local expertise in management and technical trades. There is a self-reinforcing dynamic. If you are just an academic and you think that people are cogs, this is something that is missed. People are not interchangeable and and they are not infinitely adaptable.
You can make any stupid theory work as long as you remove all real world constraints that would make it fail. I suggest you actually try to do it yourself before making any broad statements.
Why, I made $12 an hour when I first was employed at a corporation (salary equivalent): it's good to know that wages have increased over those 40 years!
I hope the mayor of Chattanooga brings over that Japanese tractor manufacturer Iseki, so that my supply chain of parts won't span across The ocean, with international shipping… Possibly less expensive to ship something across America (That's a possibility I said not an assured fact). It's not the best design, but I've replaced a pinion gear in the differential and now I have to do the clutch and change out of the front axles; they need replacement when you abuse it's like a beast on the hillside…
I hope the mayor of Chattanooga brings over that Japanese tractor manufacturer Iseki, so that my supply chain of parts won't span across The ocean, with international shipping… Possibly less expensive to ship something across America (That's a possibility I said not an assured fact). It's not the best design, but I've replaced a pinion gear in the differential and now I have to do the clutch and change out of the front axles; they need replacement when you abuse it's like a beast on the hillside…
2
Maybe the GOP is serving as a conduit for cheaper labor against the interests of its largely white and often distressed voters.
For those who think this is progress, consider the Organization Todt, which provided "contract" labor from concentration camps. Todt made the profits, and the quality of work was bad, especially on sensitive war materials.
In stark contrast was the civilian and military contractor Henry J. Kaiser. He provided healthcare for his workers back in the 1930s, when many workers on the great infrastructure projects presented chronic health problems which could be easily addressed, facilitating a more productive day. This only accelerated during World War II, when Kaiser built Victory ships in his shipyards. The healthcare plan spun off as Kaiser Permanente, a non-profit health insurer with a sterling reputation with its subscribers.
Where are the Henry J. Kaisers today, when we really need them?
For those who think this is progress, consider the Organization Todt, which provided "contract" labor from concentration camps. Todt made the profits, and the quality of work was bad, especially on sensitive war materials.
In stark contrast was the civilian and military contractor Henry J. Kaiser. He provided healthcare for his workers back in the 1930s, when many workers on the great infrastructure projects presented chronic health problems which could be easily addressed, facilitating a more productive day. This only accelerated during World War II, when Kaiser built Victory ships in his shipyards. The healthcare plan spun off as Kaiser Permanente, a non-profit health insurer with a sterling reputation with its subscribers.
Where are the Henry J. Kaisers today, when we really need them?
17
The real question here is what are these companies doing to make sure their workers know that they rely on foreign investment, and what Trump's policies would mean for them? The owners of these companies and their American partners need to ensure that people are aware of where they jobs come from. They need to know that they exist because of Brazil, India etc. and what policies might prevent them from happening. The 'hush hush' approach of businesses nowadays to simply avoid any discussions or information with workers is part of the reason you have communities like that voting against their own companies, most likely unintentionally. Start discussions and promote awareness of your business and profits if you want to improve the understanding of your workers of how the world works around them.
9
I live in the Chattanooga area, and have seen the plants and jobs created Not only do companies bring jobs, both professional/managerial as well as blue collar but they support and create jobs in locally-owned companies. Wacker purchases and uses chemicals made by local Olin Chemical - that was, in return, incentivized largely by this business relationship to convert their plant to mercury-free production. A big win for the area both in jobs and environmental impact. My spouse is employed in a professional capacity at a healthcare products company in Chattanooga which is part of a global French-based pharma corporation - their supply chain from raw materials to marketing supports many US based businesses. The presence of all of these companies ripples through the economy.
The real irony is that a majority in this area who are clearly reaping the benefits - from jobs to improved environment, education, infrastructure - are the very ones who voted for a President and legislators who are intent on hindering global trade, deregulating environmental protections, degrading public education, and generally moving backwards ("clean" coal?!) rather than into the future. If any of them are concerned about their futures with these companies under the Trump regime they obviously paid no attention when they went to vote. They may very well get what they voted for. ("Sad!")
The real irony is that a majority in this area who are clearly reaping the benefits - from jobs to improved environment, education, infrastructure - are the very ones who voted for a President and legislators who are intent on hindering global trade, deregulating environmental protections, degrading public education, and generally moving backwards ("clean" coal?!) rather than into the future. If any of them are concerned about their futures with these companies under the Trump regime they obviously paid no attention when they went to vote. They may very well get what they voted for. ("Sad!")
74
"Assembled in USA" is not the same as "made in USA". Vehicles sold in US show their "North American Content" percentage (on the price sticker) which gives some idea about this. Tractors and other equipment probably are not required to do so. If a company's stock is publicly traded on any exchange then US investors can presumably share in the profits, which would provide an ultimate bottom line to this economic equation.
3
Globalism is a done deal, and Trump or Bernie, or the man in the moon cannot change this fact.
No mention in this article of American companies doing business abroad in the same manner. Coca Cola headquartered in Atlanta now gets 88% of their revenue from abroad. McDonald's the same. American Big Pharma now gets over 50% of their revenue from broad and that percentage is growing rapidly. American medical device makers same as above. Look at Apple, Google, Netflix, Facebook all American companies who have way more non American customers and revenue than they do American. And on and on and on.
The American consumer is no longer the engine that drives the world economy with only 5% of the world's population America alone cannot consume itself to prosperity even if we become protectionist.
Our only alternative is to embrace globalism and gain as much access as we can to the other 95% of the consumer market for our businesses and make sure our businesses as competitive as possible. This is what Obama, Clinton, establishment Republicans, about have the Democrats have come to accept.
Maybe our trade deals need to be revised. Maybe our tax and regulatory environment runs contrary to the ability of American companies and workers to compete.
But make no mistake, the rest of the World is going to move on with or without us.
No mention in this article of American companies doing business abroad in the same manner. Coca Cola headquartered in Atlanta now gets 88% of their revenue from abroad. McDonald's the same. American Big Pharma now gets over 50% of their revenue from broad and that percentage is growing rapidly. American medical device makers same as above. Look at Apple, Google, Netflix, Facebook all American companies who have way more non American customers and revenue than they do American. And on and on and on.
The American consumer is no longer the engine that drives the world economy with only 5% of the world's population America alone cannot consume itself to prosperity even if we become protectionist.
Our only alternative is to embrace globalism and gain as much access as we can to the other 95% of the consumer market for our businesses and make sure our businesses as competitive as possible. This is what Obama, Clinton, establishment Republicans, about have the Democrats have come to accept.
Maybe our trade deals need to be revised. Maybe our tax and regulatory environment runs contrary to the ability of American companies and workers to compete.
But make no mistake, the rest of the World is going to move on with or without us.
54
Yes indeed..........
Economists are great at analyzing a country through the lens of its economy. In relentless pursuit of free trade, they argued that American low-end jobs should be offshored because the numerous efficiency gains that would result. They did seem to take account how these job losses would decimate local communities and how comparable jobs would never return. Now, the US is in the position of having to expend great amounts of money just to have a modest number of those low wage jobs return, usually with none of the benefits of the jobs that left.
5
..." just to have a modest number of those low wage jobs return"...
I'm not sure that is entirely correct. Most of the jobs returning to the areas referenced in the article are as good as, or better than, the textile and furniture making jobs that left 30 or 40 years ago.
I'm not sure that is entirely correct. Most of the jobs returning to the areas referenced in the article are as good as, or better than, the textile and furniture making jobs that left 30 or 40 years ago.
4
Exactly right, Matt.
America won the race to the bottom.
Economists have an awful lot to answer for.
America won the race to the bottom.
Economists have an awful lot to answer for.
Of course foreign companies will create some jobs as they "follow their customers".
But globalization has been a spectacular failure that has destabilized societies across the developed world, as even the elites now acknowledge. The data are simply irrefutable.
Globalization can and should be a "win/win" as the economists have been saying it is from their ivory towers, in their textbooks, and in their "white papers for hire" for the past thirty years.
It wasn't.
And that explains Trump, Brexit, Macron, and the ongoing collapse of the post-WWII geopolitical architecture. And China completely out-maneuvered all of our "shrewd American capitalist businessmen" at every single turn.
Approx 40% of the jobs in the chart are in the auto industry. Unfortunately, we've reached "peak auto"; it's all downhill from here as things like the sharing economy improve the utilization rate of cars, so far fewer of them will be necessary. And thanks to the downward pressure on wages from 30 years of failed globalization, fewer and fewer Millennials have the disposable income to buy new cars every few years. Fewer sales, fewer jobs. Also, those jobs left will continue to be automated, more and more.
And 3D printing is about to revolutionize global supply chains.
We're now entering a new era of globalization driven by tech platforms. We have an opportunity to course-correct with the Jack Ma vision of bottom-up globalization, which is our only hope of avoiding massive social unrest.
But globalization has been a spectacular failure that has destabilized societies across the developed world, as even the elites now acknowledge. The data are simply irrefutable.
Globalization can and should be a "win/win" as the economists have been saying it is from their ivory towers, in their textbooks, and in their "white papers for hire" for the past thirty years.
It wasn't.
And that explains Trump, Brexit, Macron, and the ongoing collapse of the post-WWII geopolitical architecture. And China completely out-maneuvered all of our "shrewd American capitalist businessmen" at every single turn.
Approx 40% of the jobs in the chart are in the auto industry. Unfortunately, we've reached "peak auto"; it's all downhill from here as things like the sharing economy improve the utilization rate of cars, so far fewer of them will be necessary. And thanks to the downward pressure on wages from 30 years of failed globalization, fewer and fewer Millennials have the disposable income to buy new cars every few years. Fewer sales, fewer jobs. Also, those jobs left will continue to be automated, more and more.
And 3D printing is about to revolutionize global supply chains.
We're now entering a new era of globalization driven by tech platforms. We have an opportunity to course-correct with the Jack Ma vision of bottom-up globalization, which is our only hope of avoiding massive social unrest.
7
My great nephew starts community college in the fall with the Tennessee Promise program. He will be the first person in the family my sister married into to get a post-secondary education. I am so happy because, even though nothing in life is guaranteed, he is on his way to a middle class life. When he graduates, his wages from a factory will be almost twice what he would get starting straight from high school. Tennessee is so smart to start this free tuition program. A couple years of support versus a life time of food stamps, Medicaid, disability payments, drug addiction, and early death is a pretty good investment. Having seen the drama and stress from poverty in my sister's family, I could not be happier that foreign companies are opening factories near Chattanooga.
29
I wish your nephew luck, but if you voted for Trump you voted for the guy whose proposed budget would yank much needed federal funds for your Tennessee Promise program. Do you think Tennessee is supporting this program without the federal government? Don't believe me, research it yourself, google "is Tennessee Promise program under threat by Trump budget." Read about it for yourself in your local newspapers.
Fortunately for you, Democrats will fight tooth and nail against any budget that takes away funds for education.
And you'd better revise your expectations for "middle class life" way downward.
Fortunately for you, Democrats will fight tooth and nail against any budget that takes away funds for education.
And you'd better revise your expectations for "middle class life" way downward.
3
Why do you assume that I voted for Trump? I am a progressive and I live near D.C. In a neighborhood that has a reputation as a haven for liberals. My sister married the impoverished redneck, not me. I also know that the Tennessee Promise is a supplement to federal Pell grants. My hope is that the program stays in place long enough to get my nephews through school. The drama and stress from poverty in my sister's family is heartbreaking and I hope the next generation has more opportunity.
But where are wages? Going nowhere, as usual.
13
Did I miss your coverage of the significant tax breaks provided by the state and local governments? The competition among jurisdictions to lure companies by forgoing tax revenue? The research -- or lack thereof -- as to the overall fiscal impact of tax policies geared to attracting businesses?
80
Perhaps the loss of tax revenues is less than the cost of welfare, unemployment, and community blight? Give it a chance.
4
You notice none of these countries are "slave labor" countries.
The problem is not these countries but countries like China, Vietnam, Mexico, India etc.
We cannot compete with these countries. We should impose a fair, non onerous tariff, plus tax breaks and increased worker productivity to bring these jobs back that the reps. (and dems) farmed out decade after decade.
The problem is not these countries but countries like China, Vietnam, Mexico, India etc.
We cannot compete with these countries. We should impose a fair, non onerous tariff, plus tax breaks and increased worker productivity to bring these jobs back that the reps. (and dems) farmed out decade after decade.
10
A substantial portion of the article was about Mahindra an Indian company with a plant in Tennessee. There was also a mention of Haier a Chinese company employing 1500 people. Not sure how you missed those.
1
I have been importing from Vietnam for 14 years and they are not slaves. Everyone gets a living wage, hot lunch, a clean shop floor and oh, free health care. Guess what? I found a company in Chattanooga that can match and even beat Vietnam prices! Maybe we have become the wage slaves. But we can compete and that is a fact!
Mahindra, whose tractors are pictured, is an Indian company.
This is a good illustration to the limits of those who think of nationalism in absolute terms. Capital does not care about borders. Its main goal is profit or its self valorization. Labor productivity tends to be higher in the US than in India. Indian capital knows that it is more productive here than in its "native" country (in reality capital does not have loyalties to any country). If it left it to itself in India it would not prosper as much as in the US. There is always a transfer of value from less developed to the more developed countries. The only exception to this rule maybe China with its own autonomous tendency. However, we don't know the end of this story. 400 years of capital production confirm that capital always seeks the more productive places of production (Florence, the Netherlands, England, the US in that chronological order). The question is whether China will be able to get capital out of the stagnation it finds itself stuck in. In the meanwhile politicians will feed cheap nationalism for their own selfish purposes.
7
The creation of good jobs by foreign companies in Chattanooga is obviously a positive for the region and the workers there. That said it is disheartening to see the profits flow overseas and the US become more like a third world country seeking foreign investment to stay afloat. I remember when American companies produced everything here. That was not that long ago. One has to ask if a foreign company can make money opening a factory her why can't an American company do the same? Why are we seeing so little investment by these companies at home? Does it matter? I would say yes. The more jobs created by overseas companies the less able we are to say "no" to them in both domestic and international issues. This weakens us as a country.
40
I have wondered about the same inconsistency for a long time too. But you know what? The economists are too busy arguing about tariffs and ancient history like Taft Hartley to care (it's ancient because the global situation in the 21st century are NOT the same as they were in 1890).
I personally think the academic world is stuck in a rut unable to adapt to the reality of the modern, technological world. It is why they have no response to it. They are still working with 100 year old techniques. it is almost like economics has become a priesthood that passes down its teachings from one generation to the next without expansion or adaptation. Imagine if we were still using Newtonian physics in the 21st century when we know that Einstein's body of work existed.
I personally think the academic world is stuck in a rut unable to adapt to the reality of the modern, technological world. It is why they have no response to it. They are still working with 100 year old techniques. it is almost like economics has become a priesthood that passes down its teachings from one generation to the next without expansion or adaptation. Imagine if we were still using Newtonian physics in the 21st century when we know that Einstein's body of work existed.
I guess foreign entities know were to go for their cheap labor. Not only about wages but also working conditions. Cheap as synonymous with red, republican states.
97
Take a tour though a foreign owned plant in the south, ask about wages and benefits and look at working conditions.
15
You've obviously never visited BMW's largest manufacturing facility in the world, located in Greer, South Carolina.
2
Most of America is purple. It is a mosaic that shifts and ebbs locally with time and each election cycle. The Red/Blue dichotomy is incorrect and divisive.
I don't see Mexico, China, South Korea or any of the nations represented in the Trans Pacific Partnership in the list of those creating employment in the US, for obvious reasons. This article should not be trying to compare apples with oranges.
13
Japan and South Korea were prominent in the table of foreign countries creating thousands of jobs in the US and were also the central members of TPP. I'm afraid that most people who rejected TPP were similarly based/blind in their research of its pros and cons.
8
Just because you don't see manufacturing plants from certain countries in upstate New York does not mean they don't exist. If you were to drive from Montgomery, Ala. to Atlanta in a Kia or Hyundai car, you would drive past factories where the vehicles are assembled by these South Korean companies as well as many parts manufacturers owned by South Korean and Chinese companies. Many of these companies also supply parts to manufacturing plants in Mexico.
4
China is not in TPP. Japan is the largest economy in TPP(now that we've dropped out). Do some research before commenting please. It's real easy on the interweb!
One needs to consider jobs, wages, and benefits. A Toyota plant in WV hires people as temporary workers for 11 months and 29 days, then lets them go only to hire another temporary worker. This way the employee is never given full health and retirement benefits.
Employment statistics need to include more than just employment. They should include wage growth, percentage of full-time workers with health benefits and percentage of workers with retirement 401Ks that are fully matched by their employer.
Employment statistics need to include more than just employment. They should include wage growth, percentage of full-time workers with health benefits and percentage of workers with retirement 401Ks that are fully matched by their employer.
126
Great point! Another factor to consider is the total value of these tax breaks for companies that are also taking advantage of American infrastructure. These companies enjoy the transportation, stable electrical supply, and low or no property or income taxes, and business friendly tax rates. But is the state bringing in enough revenue to maintain the infrastructure that is exposed to continuous wear and tear, much if which comes from commerce?
In NY the Cross Bronx expressway might as well be a private business highway. It's wall to wall big rigs most of the day and night. Many businesses use our highways and railways, which are in desperate need of upgrades and repair throughout the country. Or even the public transportation system that allows employers to access workers convienent to their location, but has deteriorated greatly from decades of underfunding, even as workers struggle to afford the fare that keeps rising.
In NY the Cross Bronx expressway might as well be a private business highway. It's wall to wall big rigs most of the day and night. Many businesses use our highways and railways, which are in desperate need of upgrades and repair throughout the country. Or even the public transportation system that allows employers to access workers convienent to their location, but has deteriorated greatly from decades of underfunding, even as workers struggle to afford the fare that keeps rising.
21
Agreed!
It seems that jobs should be classified A, B, C, etc. A class A job would come with a middle class wage and benefits including good health insurance, some type of pension/retirement account, paid sick time, and so on. A class B job has a lower wage, fewer benefits, down to class D; minimum wage, no benefits.
Every class A job creates demand for other jobs of all classes. Therefore, if the government focused just on the creation of class A jobs, i.e. through infrastructure upgrade, the other jobs would take care of themselves.
Lumping all jobs together to a single number of "employed" does not provide an accurate picture of reality.
It seems that jobs should be classified A, B, C, etc. A class A job would come with a middle class wage and benefits including good health insurance, some type of pension/retirement account, paid sick time, and so on. A class B job has a lower wage, fewer benefits, down to class D; minimum wage, no benefits.
Every class A job creates demand for other jobs of all classes. Therefore, if the government focused just on the creation of class A jobs, i.e. through infrastructure upgrade, the other jobs would take care of themselves.
Lumping all jobs together to a single number of "employed" does not provide an accurate picture of reality.
3
I think your idea is great Ralph Averill. When Trump was running for President he made a meal out of the fact that although unemployment was very low, so many people were struggling to make ends meet on jobs with no security, little if any benefits, and stagnant wages. Even people with class A jobs are struggling and stressed about finances. I think a classification system would give a more accurate picture of our economy and also the financial stability of our population.
And you note that a class A job creates demand for other jobs of all classes. I agree. I wonder if too many class D and C jobs creates the opposite situation, and contributes to the loss of class A and B jobs, as these workers are increasingly less able to afford many products and services?
And you note that a class A job creates demand for other jobs of all classes. I agree. I wonder if too many class D and C jobs creates the opposite situation, and contributes to the loss of class A and B jobs, as these workers are increasingly less able to afford many products and services?
3
The other side of this coin is the deep roots that American companies have had for decades abroad. Everybody knows about Coca Cola. GM is among the largest auto manufacturers in China. Caterpillar and Deere have had plants overseas for decades. McCormack isn't a player in the US mayo business but sells huge quantities of "mayonesa" in Latin America. The list is long. I remember a British au pair who lived with us 25 years ago who fervently believed Heinz was actually a British company (they have operated in the UK for over a century). She spoke often how she missed Heinz "Salad Cream", something I'd never heard of. When she found some at a store that sold British items and brought home a bottle, I discovered it was basically a somewhat more liquid version of Miracle Whip.
8
Do you know that every American factory in China is owned also by a Chinese company in a 50/50 venture. The Chinese would never let American companies come in and import or build products in China without the Chinese benefitting mightily. Only in America do we let foreign companies bring their products in and destroy American jobs and families.
60
The United States has been looted over the last 40 years. During the summers of my college years I umpired a third shift softball league with dozens of teams. Now there is no longer any third shift, the factories who supplied the third shift jobs are gone too. The products are still being made, just in an Asian country or Mexico.
Drive through New England and see the empty factories, or through the Carolinas, or certainly through the Midwest.. Your article makes it seem like foreign companies investing in Amaerica with a thousand jobs are better than American companies in America with thousands of jobs. Remember even when the products are assembled here, most of the support jobs, upper management jobs and the profits go back through Asia or Europe.
Drive through New England and see the empty factories, or through the Carolinas, or certainly through the Midwest.. Your article makes it seem like foreign companies investing in Amaerica with a thousand jobs are better than American companies in America with thousands of jobs. Remember even when the products are assembled here, most of the support jobs, upper management jobs and the profits go back through Asia or Europe.
63
Those textile factories in New England were emptied out when production moved to North Carolina, not overseas; the jobs were replaced with much better tech based jobs, a period called the "Massachusetts Miracle" (remember Wang word processors?
They used those old textile factory buildings in Lowell). Some of these were again replaced by other economic activity. Later on North Carolina was emptied when the textile jobs actually did move abroad, but again were replaced with better jobs. This is an inevitable and endless evolutionary process, and trying to stop it is like trying to prevent the tides from coming in. The right response is to accept change and seize the opportunities created.
They used those old textile factory buildings in Lowell). Some of these were again replaced by other economic activity. Later on North Carolina was emptied when the textile jobs actually did move abroad, but again were replaced with better jobs. This is an inevitable and endless evolutionary process, and trying to stop it is like trying to prevent the tides from coming in. The right response is to accept change and seize the opportunities created.
34
Equating moving jobs to the American south with moving jobs abroad is a completely false analogy. Jobs that stay in the US have to meet the same general minimum wage, environmental, and health and safety standards. Jobs that go outside the USA do not.
11
I understand the argument about the profits and management jobs remaining in foreign countries when they manufacture in the US, but honestly, so what? Would we prefer Volkswagon just keep the manufacturing in Germany so we don't get the assembly jobs either? Foreign automakers locate manufacturing here in the US to shorten their supply chains - this type of arrangement really is a win-win. They save on shipping and logistics, we get good manufacturing jobs. I agree though that a lot of American companies (like Medtronics) have been extremely unpatriotic in shifting jobs overseas and doing corporate inversions to save on their tax bills, even while they were profitable before.
7
In the beginning of the industrial revolution, Britain exploited the prime cotton-growing conditions and cheap labor in the global South to feed it's mechanized textile industry. At that time the U.S. had it's own "global South" with prime growing conditions and free slave labor (c.f. Beckert, "Empire of Cotton"). It's striking that these companies are locating in the U.S. now that wages have been driven down and unions have been repressed, particularly in the South (and in Wisconsin, with it's new anti-union laws!) In the 1930's the South was effectively a third-world country. It still is.
83
A part of me feels uncomfortable when foreign companies provide jobs in the U.S. Yes, they help American workers, particularly the poor find jobs. But that should not be the end all be all. Where are the accountants, lawyers, other white collar jobs that should grow in correlation to the number of blue collar jobs that have been outsourced? How have those who have had their jobs taken away fared afterwards? Those deprived of low level skilled wage labor should have been taken care of.
18
The loss of High end jobs is less of a problem in the US. In the Bay Area and to some extent in Seattle many foreign companies have opened R&D facilities . E.g. Toyota claims it will spend a billion on such a facility in the Bay Area, off-hand other example include Bosch, Samsung, Ricoh,
According to Mr .Kilbride of the Chattanooga Chamber, “If you’re concerned about anything, you sit it out.” Trump's instability is a cause for concern, so we can expect foreign investors -- and U.S. investors -- to wait to invest. We should know by the 2020 campaign and can vote accordingly.
8
disagree with you, the Jobs are coming BECAUSE of Trumps involvement. The Economy is growing like a locomotive rolling down the tracks. If the Election were today Trump would win by a larger landslide than he did because of 3 factors, economic growth, Liberal and left wing hate and the main stream media's hate for Trump. He is now reaching a cult figure beause of the Media's lies and ugly behavior.
Oh, for heaven's sake Alan, these jobs came during the Obama years. they didn't come in the last six months, and if you read the article you'll notice Tennessee is worried Trump will screw the whole thing up with his "America first" nonsense. The economy is going like gangbusters as a result of Obama's bringing this country back from the brink of collapse in 2008. Any economist worth anything will tell you that. Wake up.
That being said, these jobs are not the quality of jobs we had decades ago when they resulted in more than a barely living wage and had more benefits. The website livingwage.mit.edu will give you the rundown on what it takes in earnings to live in various parts of this country now. Of course, it's MIT so they're just part of the overeducated liberal elite and they're lying to us all day long, right?
That being said, these jobs are not the quality of jobs we had decades ago when they resulted in more than a barely living wage and had more benefits. The website livingwage.mit.edu will give you the rundown on what it takes in earnings to live in various parts of this country now. Of course, it's MIT so they're just part of the overeducated liberal elite and they're lying to us all day long, right?
3
The ones-sided emphasis of this article is misleading.
There is nothing wrong with free trade between high-wage industrialized nations. Trade between comparable nations bolsters the economies of both.
But there is something very wrong with free trade between high-wage and low-wage nations, which has been devastating to workers in the high-wage nations.
Partly that's because trade agreements are intentionally skewed to favor the low-wage nations, but mostly, it's because when globalization introduced hundreds of millions of unskilled workers into our economy, factories moved overseas and the wages of blue collar workers in the US declined.
In the short run, protectionist measures can be painful for both sides, but in the long term and on balance, they would be strongly beneficial to the people and economy of the United States and the other industrialized countries.
There is nothing wrong with free trade between high-wage industrialized nations. Trade between comparable nations bolsters the economies of both.
But there is something very wrong with free trade between high-wage and low-wage nations, which has been devastating to workers in the high-wage nations.
Partly that's because trade agreements are intentionally skewed to favor the low-wage nations, but mostly, it's because when globalization introduced hundreds of millions of unskilled workers into our economy, factories moved overseas and the wages of blue collar workers in the US declined.
In the short run, protectionist measures can be painful for both sides, but in the long term and on balance, they would be strongly beneficial to the people and economy of the United States and the other industrialized countries.
21
Restricting trade to high productivity economies carries no economic advantage to these producers. Commodities produced in highly productive countries contain less value per commodity than those produced in countries with lower productivity. Thus, their competitive prices and the bankruptcy of those less productive. England and the US became dominant in their time by exporting commodities to other countries for that reason.
If you deprive American workers of cheap means of subsistence produced in China, you could not afford to compete with those who don't. In this matter, American companies have no choice. From a moral point of view, Americans deserve better wages. However, it is a political question that moral protectionism would not solve. Within the frame of capitalist production your proposal would require that American capital sacrifices its own needs for self aggrandizement.
What we need is to question who benefits from the current arrangement and what do we need to change to improve the lives of American workers. No politician with a narrow protectionist view can solve this question.
If you deprive American workers of cheap means of subsistence produced in China, you could not afford to compete with those who don't. In this matter, American companies have no choice. From a moral point of view, Americans deserve better wages. However, it is a political question that moral protectionism would not solve. Within the frame of capitalist production your proposal would require that American capital sacrifices its own needs for self aggrandizement.
What we need is to question who benefits from the current arrangement and what do we need to change to improve the lives of American workers. No politician with a narrow protectionist view can solve this question.
Indeed, England could not have been the capitalist superpower without its colonies. These were the necessary markets for its highly productive economy. India and other English colonies had low comparatively wages because of their low productivity. Thus the Indian textile industry was ruined by the British. Conversely, the English textile industry could not confine itself to the highly competitive context in Western Europe. Others would have taken its position in the world market (a polite name for its expansionist gun diplomacy).
Without the American revolution the destiny of the US would have been different. This historical event triggered the rapid industrialization of both agriculture and industry by breaking the British stronghold on American productivity. The Indian and Chinese people got their revolution at the end of the 1940s. Only China seems successful in promoting protectionism from a low productivity standpoint and their wages and productivity are raising. Protectionism only works in that sense. In the current context it would entail the further impoverishment of American workers.
Without the American revolution the destiny of the US would have been different. This historical event triggered the rapid industrialization of both agriculture and industry by breaking the British stronghold on American productivity. The Indian and Chinese people got their revolution at the end of the 1940s. Only China seems successful in promoting protectionism from a low productivity standpoint and their wages and productivity are raising. Protectionism only works in that sense. In the current context it would entail the further impoverishment of American workers.
Driving a 2017 Passat that was assembled in Chattanooga, we look for its counterpart in Germany--in vain. The vehicles being put together by VW are not the same as those German cars still made in Wolfsburg by Hannover. Having won awards as a contractor for BMW's Greer, South Carolina manufacturing, and having been instrumental in changing the sections of the United States Code of Federal Regulations that pertain to the customs entry process, to facilitate the importation of new assembly lines, I can see 20 years on that my work and that of others in logistics has boosted employment in places like Tennessee who were needy enough to take the risks to attract foreign investment and business.
6
Trump's promise to get rid of costly labor/environmental regulations and a cheap dollar plays another important factor. As far as the automobile industry bottom line goes, the US is now a low-cost producing country. No need to move production overseas.