Quote:
Originally Posted by Sexyeccentric1
In light of this thread does anyone think that maybe some of the big corporations that are exporting jobs do this on purpose in part so that it may force the workers in this country to accept lower wages? It is something to think about. However if the people don't make enough money then they don't spend money and that is not good for the economy either. You need a strong middle class to keep things going a long at a steady pace. You can't be in the middle class bracket if you are making minimum wage or less.
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Here is a real life dilemma I am facing today. I am working on a manufacturing start up. Ideally I would love to keep production in USA, but I can't.
If I actually have all of the components manufactured here in the country, the product will have to be priced out of competition. Even the packaging will have to be manufactured in China for very simple reason. Lowest prices I was able to find here are 2.50 - 3.00 per box. Chinese are willing to supply same packaging for fraction of the cost.
In addition to that, lenders are not willing to fund manufacturing start ups. They will listen to you, nod in agreement and in the end of the day will lend $100,00 to ten internet start ups hoping that ONE of them will end up being next Facebook and bring them 100 to 1 return on the money rather than funding 10 manufacturing start ups and bringing them 2:1 return.
We are running into endless loop - diminishing middle class due to outsourcing of manufacturing, continued outsourcing of manufacturing due to diminishing purchase power of almost non existent middle class.
If government REALLY wanted to fix this problem they could do so by subsidies to american small businesses to cover the difference in production costs locally vs overseas.
Lina