Change and Adjustment…It’s Hard ….

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Change and Adjustment…It’s Hard ….

Postby JackF » Thu Oct 18, 2012 11:22 am

It’s raining so I’m inside looking at bills and cost of operation and decided to vent a little if someone cares.

I had to purchase a very expensive tire for a large piece of equipment recently. I tried to shop locally and prices weren’t what I thought they should be so I reluctantly went to the web and big tire shops in the closest major city. The best price I could find was for a known brand (named USA brand) shipped directly from New York to my house. I hated to buy away from the local people, but the difference was almost $500.00.

When the tire arrive and after inspection I found made in China on it. Of course many things went through my mind plus a telephone call to the manufacture because this was not disclosed on the sale. They said all the big equipment tires are made in China and have been for some time. I guess I’m in my little cocoon and don’t get out that often but it’s hard to believe that a tire made that for away and be transported here cheaper than it could have been made in this country.

Also I’ve read the most American made (U.S./Canadian parts) cars now mostly go to a non USA company(s) for 2012.

I’m not trying to be political; I’m one that believes our President(s) now or four years ago has never had the power to change this; only large corporations are doing what is profitable for them and what shakes out is what it is.

What I see is; large named USA corporations moving from the U.S. saying we aren’t friendly to them because of taxes, unions, EPA restrictions and ect. then, move to a county paying people next to nothing and sell goods back to us at a large profit. Privately/public owned corporations should have and can do what it takes to make a profit and in my (Joe six pack) mind that’s justifiable until you look at Germany.

Germany labor force is mostly unionized ,wages are very good, Germany provides universal medical coverage, Germany is very green EPA wise, German retirement age is 65 unless you are disabled, German pension system is very close to the U.S. and at the same time Germany is the third most powerful economy in the world with a unemployment rate at 6.8%! I’m not trying to say Germany’s way of doing things is superior but what I’m looking at is; an industrialized country with large corporations that has available benefits to its citizens/workers and supposedly that's why the U.S. companies are moving away because they say they are threaten by the cost of these things in the U.S. Maybe someone with more of an intellectual background than I have can explain that. (That won’t take much)

I can understand why companies go to China, India and ect. because of cheap labor right or wrong on their part. How can corporations stay in Germany and be happy and not in the U.S.?

The tire… It’s staying. I guess unknowingly I added to China’s economy and put another U.S. worker out of work.

I own a few things that are truly USA made that’s soon becoming a rarity.

Change and Adjustment…It’s Hard ….
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Re: Change and Adjustment…It’s Hard ….

Postby Eugene » Thu Oct 18, 2012 12:39 pm

US companies moving off shore. Overseas labor rates are a major concern. US tax laws are certainly a large part of the problem. Most very large US corporations are actually international.

US corporations with overseas operations get taxed in the country of origin and where the product is sold. If the profits made in a foreign county are brought back to the US, that money is again taxed at the US rate. Nominally 35%, the highest rate in the industrialized world.

From a personal perspective, I own stock in a dividend paying foreign coffee company. When the company pays a dividend the company has already paid local taxes on the profit, then I get taxed again on the dividend when the funds are transferred to the US. And I still have to pay state and federal income tax on the money.

Not to prolong the discussion, the US tax laws need a major over haul. Congress is the responsible, unresponsive, government agency. One more thing that needs to be changed is The Federal Register. The Federal Register is where Federal departments put rules and regulations into effect. Most of which are never looked at by members of Congress.
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Re: Change and Adjustment…It’s Hard ….

Postby Bob Perry » Thu Oct 18, 2012 1:58 pm

I see it like this:

First 1/3 of my life: Go to New Bedford, Fall River, Providence, really almost any U.S. city, factories are busy, there's a hum of activity. Memories of WWII are fresh and we almost never buy foreign products.

2nd third of my life: Those factory workers are doing good, high wages and benefits, 6+ weeks vacation, holidays paid, life is good. Hey did you hear that plant is shutting down? Did you notice that foreign cars are lasting longer and are more economical to drive?

3rd third: All those factories, well they're mostly still standing, but they house day-care centers, factory-outlets, many are just vacant. We shop at Walmart and BJ's and Home Depot, sure, most of the products are imported, but we love the low prices. Many people turn to the government for heating assistance, educational aid, job training, food stamps, transitional assistance, welfare, and more government jobs. Government gets bigger and bigger. As the economy plunges, politicians increase government spending, even labeling it "a stimulus package", thinking that spending money we don't have is a good thing.

Sadly, "my generation", those of us born in the 40's, 50's and 60's, look at what we had, and look at what we are leaving for our kids and grand-kids. Huge debt. And now we are reaching the teetering point, where very soon the average voter will be more a recipient of government spending than a contributor, and at the polls their voice is heard, so for a politician to be elected, that's the people who will have the majority of votes.
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Re: Change and Adjustment…It’s Hard ….

Postby chickenfarmer » Fri Oct 19, 2012 6:46 pm

I see it just as you do Bob. Being only 25 I dont remember when any of the large mills/factories were puffing black smoke all day or hearing the noon lunch whistle, but I sure do love hearing my father and grandfather tell me stories about when they were young. 'The good olde days' My town is small, under 1500 people and the cows really do outnumber the people, by almost 2 to 1. Since I can remember, the town has gone from poor and desolate to today being a hotspot for homegrown, homemade goods that really seem to be bringing back the type of people that used to live here. Hard working, friendly and always remembering where they come from and how they got here. My wife makes custom handbags from locally sourced fabric, and has had great success with a majority of her customers from right here in town. I think there is a small percentage of us who really embrace the old way of thinking/living. We try very hard to buy American made goods, and even locally produced goods when possible. I think having an old tractor or car or any classic piece of American history gives all of us a sense of who we once were. I will never criticize anyone who chooses to live in a big city and not have any connection to the America that once was, but I do believe that each and every person who lives here NEEDS to know our farming/industrial history and be proud of the people who have made this great country for us to enjoy.
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Re: Change and Adjustment…It’s Hard ….

Postby JackF » Sat Oct 20, 2012 5:30 am

The Federal Register; Eugene, I haven’t heard about that since debate class in 1969. I spilled coffee all over my key board this morning when I read this. The most kept government secret since March 14, 1936. Incidentally I lost that debate because I couldn’t persuade; agencies get their authority to issue regulations from statutes enacted by Congress .Even back then Congress was alleged an unresponsive government agency by the populace.

Bob; what a narrative account of what you witness in your life so for. Agree or not I hope to meet you at a Cub event someday.

Chickenfarmer; I think you’re so very lucky to be around such positive people that turned a town around as they did. The town you live in is “America that once was” and the people of this country should be force to take a class on how the rebuilding of your town came about. Ah… a statute for the Federal Register; Eugene.

I did a little research on why Germany’s unemployment rate has been declining during the Great Recession. Supposedly Germany is creating jobs using the Obama administration’s preferred strategy for America – through exports. In short; Germany specializes in machinery and other heavy equipment. Factories and power plants in places like China and India need just this type of equipment to drive their own economic progress. So Germany has formed something of a complementary relationship with emerging economies. Simply put, Germany has found a way to create jobs through maintaining manufacturing competitiveness. German industry is committed to making the sort of high-quality, high-performance, innovative products for which the world will pay extra. They make stuff that can’t so easily be reproduced elsewhere. So even though Germany is being challenged by Chinese industry, German companies have managed to stay a step ahead.
Why German manufacturing doesn’t move to another country…
The backbone of German manufacturing is small to mid-sized firms that are often family-owned. These families are in many cases committed to keeping factories at home. Though they want, of course, to make as much money as possible, they’re not under the same pressure from shareholders to show bigger and bigger profits each quarter. That allows them to take a long-term view. German management also just seems more determined to find ways of staying profitable while still manufacturing in Germany.
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