Quote:
I don't think the unions priced products out of the market--Fords and GMs have been cheaper than Japanese and German imports for a long, long time now, yet they still can't sell cars. Only import I can think of that is street-legal and cheaper than USAian cars is a Yugo, and those didn't sell so well either. It's a quality thing, Ford & Mopar did not keep up with engineering improvements and style the way the Japanese companies did.
There are lots of union brands available that are available at the local mall and selling well even in these hard times: Brooks Brothers, Carhartt, Ellen Tracy, etc. And that's just clothing; Calgon, Clorox, Colgate, Dow, DuPont, Eastman (makes Minwax and paints), Farberware, all have products sold at
Wal-Mart that you've probably bought. The reason executives took things overseas is because their profit margin is larger--even after the companies moved overseas,
the prices of goods stayed the same or increased. They did not pass their savings on to consumers as promised, they took the money and pocketed it. I don't know why anyone was surprised by this, it is part of their corporate charter to make the largest profit margin for their shareholders that they can. If you can price a product at $3 and not lose sales, even though your overhead costs have gone from $1/bottle to $0.25/bottle, then as a CEO it is your job to reduce your overhead costs--regardless of the cost to communities, country or overall economy,
even though they were already making profits aplenty. That's just how microeconomics works, I'm afraid. There is no such thing as "enough" once you've got shareholders.
You have it exactly right. It's not that they can't afford to operate in America. It's just that in America the CEO's can only make 2 to 3 million a year. If they operate in China they can make 100 million a year. It's all about greed. I could have cared less about Clinton and Monica but Clinton and Nafta was the beginning of the end for the US as we know it. Now we are so in debt to China that there is no choice but to honor our trade agreements. That's how we get China to lend us all the money that they have in the past and that we plan to borrow from them in the future. So there won't be any jobs coming back anytime soon.