Originally Posted by OutlawPatriot
Originally Posted by RGinther
please Bob explain to us all how your are going to compete with Labor cost of $2-5 per day??

There are a lot of benefits to staying here in the states. For many companies, most of their customers are HERE so being here makes shipping easier. Many companies do business with other B2B companies here in the states. And frankly, I think most companies WANT to provide jobs to Americans. On the other hand, the tax and regulatory overhead burdens here make it tempting to go with cheap foreign labor. It's all a balance. If the tax load and regulatory burden were less here in the states, it would no longer be financially advantageous to go overseas. The pluses would outweigh the negatives of higher US labor costs and companies would choose to stay.

In other words, there are many variables that factor into the equation other than a simple apples to apples comparison of labor costs. You are oversimplifying the decision making process.



A lot of US companies that have moved operations to China hoping to capitalize on that huge opportunity are now facing huge huge losses. Caterpillar for one probably wishes they never moved out there.