Our Manufacturing Relationship With Mexico 2016

[Tom Joad]

Originally Posted by Oerets

Not forced made easy. Easy way to increase profits by cheaper labor. I haven't seen the cost of products drop when the factory moves, have you? Just the increase in CEO salaries.



Barney

Carrier moved to Mexico so that they could pay their workers $3 bucks an hour instead of $23. That's quite an incentive. And no, companies that do this don't do it so that they can pass that $20 an hour savings in labor costs on to their customers. Oh Hell no. They stick that $20 bucks in their pockets and then ship it back here and sell it to the people that are still fortunate enough to have decent paying jobs.

[Pio1980]

Originally Posted by Oerets

Not forced made easy. Easy way to increase profits by cheaper labor. I haven't seen the cost of products drop when the factory moves, have you? Just the increase in CEO salaries.



Barney

And don't forget stockholders. They can steer policies as well to their benefit.
The alternative is a product/ worker centered company ethic over maximizing monetary profits to benefit upper management and stockholders. If you see a Wall Street driven greed problem here, you might be paying attention.

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[donquixote99]

As I've asked before, should companies have the right to make decisions like this, with no one's permission and without even having to explain themselves?

[Oerets]

Originally Posted by Pio1980

And don't forget stockholders. They can steer policies as well to their benefit.
The alternative is a product/ worker centered company ethic over maximizing monetary profits to benefit upper management and stockholders. If you see a Wall Street driven greed problem here, you might be paying attention.

Sent from my SM-N900V using Tapatalk

Like when workforce cuts are announced stock prices go up?



Barney

[JJIII]

Originally Posted by donquixote99

As I've asked before, should companies have the right to make decisions like this, with no one's permission and without even having to explain themselves?

The right side of my brain says, "Yes, they should."

My left side of my brain says, "How then do we solve the problem?"

That's as far as I got.

[merrylander]

Very simple answer don't buy Carrier HVAC equipment, it is not really very good anyway.

[whell]

https://ideas.repec.org/a/elg/rokejn...4p429-441.html

Between 1993 and 2013, the US trade deficit with Mexico and Canada increased from $17.0 to $177.2 billion, displacing 851,700 US jobs. All of the net jobs displaced were due to growing trade deficits with Mexico. The number of US jobs displaced by trade deficits with Canada declined slightly between 1993 and 2013. Prominent economists and US government officials predicted that the North American Free Trade Agreement (NAFTA) would lead to growing trade surpluses with Mexico and that hundreds of thousands of jobs would be gained. The evidence shows that the predicted surpluses in the wake of NAFTA's enactment in 1994 did not materialize. Growing trade deficits and job displacement, especially between the United States and Mexico, were the result of a surge in outsourcing of production by US and other foreign investors. The rise in outsourcing was fueled, in turn, by a surge in foreign direct investment into Mexico, which increased by more than 150 percent in the post-NAFTA period.

The other challenge is when the US makes foreign investments and profits from them, current US tax law makes it prohibitively expensive to repatriate those profits. So, NAFTA plays a role, but its not the only variable in the equation.