Corporations aren’t ‘obligated’ to build in US

4 thoughts on “Corporations aren’t ‘obligated’ to build in US”

  1. Profit rules, no question about it, Pied, but such decisions are complex because there are numerous other factors that affect that profit than just the prevailing wage. These would include political factors (corruption, trade laws, tariffs, etc.), social factors (work ethic, religious stability, crime), educational level and trainability of the potential work force, healthcare resources for the workforce, transportation facilities for the products, and not least, taxes.

    I believe the biggest defect in the global marketplace is the lack of a level playing field for corporate taxation. Many large companies use legal tricks to evade taxes, including something called the “double Irish Dutch sandwich”. I wrote about such in one of my posts:

    It is because of such manipulation, I submit, that the world now has the largest disparity of income between the haves and the have-nots since the age of the Robber Barons. They had best be careful and should learn from Henry Ford. He knew that a prosperous underclass was necessary as a market for his production.

    1. Oh yes, I’m aware of the complexities and was trying to simplify for the sake of example (and in case Sarah Palin stopped by for a read). Personally I doubt there’s anything one president, one party, one term in office, or perhaps even one nation can do at any one point in time. We can push here and nudge there, but it’s difficult to know for sure what the eventual result will be after all the forces have had their shot at it. It’s like the butterfly effect, and we are the butterfly.

      A lot of people talk about creating a “level playing field” as though we had direct control over what other nations do. But we can only directly change the U.S. end of the field. That would probably mean rolling back labor safety standards, reducing taxes and regulations on our corporations, etc., to convince corporations to locate or stay here. I don’t see that happening while Americans are up in arms about corporations not paying enough in taxes, not hiring, not “sharing the wealth” as Hoffa seemed to think they should. People can’t have their cake and eat it too. You can’t treat corporations like the Sith and then complain if they move their base to another planet.

      Or maybe just to Grand Cayman.

  2. I think any American corporation that outsources to China, India, etc. ought to be taxed within an inch of its life. Enough of them have put enough people out of work with the sole goal of lining the pockets of a handful at the top that their actions have been partner to destroying this country. Is it their right to go wherever they want? Sure. But it is an ethically bankrupt practice, and in the end, it’s going to bite them in their own backsides, anyway.

    Happy Labor Day. 😉

    1. I like Robert Reich. He always has something intelligent to say.

      I don’t know what the answer is with the corporations. If we start taxing them to death for outsourcing, they can just pull up stakes completely and move to Timbuktu. If we don’t do anything, it will be business as usual, complete with outsourcing. And if their behavior eventually ruins them, they’ll just be replaced by another corporation (probably with many of the same board members). ‘Tis a puzzlement.

... and that's my two cents