I don't see it as the right direction. We do not live in a closed economy, and making products more expensive simply to provide jobs in a desired region is wasteful and counter productive.
The move would only be correct if it actually improved things for the company.
Trump is showing that he is a facist, telling companies that they have to do this or that. Ford is showing that they will bow to a POTENTIAL government employee. he is one step closer to altruism.
Interesting take on this. However, negotiating with a company to return to the US is hardly fascism. A politician constructing policies to make it more favorable for businesses to stay in the US or pay more to construct their product outside the US and then try to sell those items in the US is hardly fascism. Is insisting voter ID from a podium fascism? Is insisting on better border regulation and security from a podium fascism?
Perhaps its me, and I'm no advocate of Trump or any other candidate at this point, but I don't see anything but sense in wanting to create a more favorable and competitive environment in the US for business.
I don't either, but a competitive environment in the US for business means less regulation and less taxation for ALL businesses, as opposed to the sweetheart deal for a big firm that Trump habitually gets for himself (and probably got for Ford).
notice it doesn't say is done or will be done or who will get credit for the 1,000 jobs after manicuring them and adding the inferred jobs. He doesn't get that privilege until after inauguration. Secondly after talking to Ford Mexico in person they just laughed and said 1000 jobs is that all we can send that many north in a week. Then indicated it did not materially affect them because of other markets and the maquiladora system making the parts...already gearing up to send them to Ohio.
'hearsay is bovine effluence, first hand observation in the maquilador complex something quite different."
Yes it MAY be true. But if not you won't hear a thing about it unless someone wants to quote or trumpet thin air.
Next is attacking the reasons for the move to Mexico, by getting rid of the anti-business mentality as illustrated by the taxes and the demonizing of entrepreneurship.
Companies move production to foreign countries in response to economic factors. Mostly getting rid of entitlement-crazy USA unions and draconian regulations and fears of lawsuits. On the Mexican side, there is LOTS of corruption and the mexican workers IN MEXICO have their own crazy work rules. Our company WAS in mexico and moved most production to China and a little to the USA (using more productive illegal alien workers). Mexico had become too corrupt and regulated to make it pay- always someone putting his hand out to be paid.
I addressed this one on FB so I'll recap here. I believe Ford. For those not familiar with the history of the Ford motor company: Ford was the first global car company. Ford did not sell it's cars globally from America. Instead, it built production facilities in the countries and regions it wished to sell their product. So, to the question of Ford changing their mind because of trump is hog wash...history tells us otherwise.
A company isn't, or should I say shouldn't, going to make a move for purely political reasons, Ford in particular. While I do not know what the reasoning is behind their decision I can speculate: 1) reduced local and federal taxation to bring in jobs to the area or perhaps, 2) no Union presence and no lawsuits from lack of union presence.
I'm sure Ford has its reasons for agreeing to this. I'm equally sure that whatever product they produce in Ohio they already have an eye for selling somewhere.
Again, the ancillary jobs/business created will likely greatly outnumber the 1000 jobs Ford projects bringing to the plant. The state may lose a degree of tax revenue on Ford but I'm certain it will take its money on the income taxes generated from new jobs.
What pressure he exercised I do not know. I know that the remarks he made about Nabisco showed considerable chutzpah. What Nabisco was doing was obviously like what was done in Atlas Shrugged. The owners of those companies are the victims of extortion, and it is wrong to blame them for trying to escape. The people who con- tinue to vote for government control and extor- tion are the ones who should hang their heads in shame. But have they got any shame? Ha ha!!!
"Donald Trump recently said that if he’s elected he would take steps to make it more expensive for manufacturers to shift work to Mexico and then export the items back to the United States."
Now let's see what Hazlitt would do with that information. What is the cost under the current system? What is the cost under the Ohio Plan? What is the cost if extra taxation (import duties) are added? Let's see....120 pesos a day six days a week at 16 to 1 exchange rate versus $15 and hour and what is the real hourly wage in Ohio and the real cost of moving a multi million dollar plant anywhere... Whatever the cost it ends up in one place and one place only.
The End User or buyer gets the entire bill. No matter what the bill may be. If it costs more then who loses?
What other businesses will NOT get the money that would have been spent elsewhere in the economy?
The buyer has x amount of dollars to spend. It can all go to Ford and government duties in which case Ford maybe and government for sure get more loot. It will not be spent elsewhere.
Nice article, full of holes you could drive a Ford Truck through and evades the entire story.
Where do people buy? Where they can afford to do so. Perhaps Walmart. They sell everything else.
On the other hand MAYBE the cars cost less as the salaries to 1000 factory employees in Ohio will be less than the duty currently paid? Prove it?
So big time Trumpet only promises to raise costs to the consumer one way ....or the other. IF Congress concurs. Is Dictator Ego showing already.
That's the bottom line. However it turns out he has no skin in the game. There aint no such thing as a free lunch and the buying public always gets the bill.
Sounds nice for the union vote though. They can launder some more campaign funds for The Donald if he manages to order buying from Ford for the Government. Of course UAW at GMC and Chrysler just miiiiiighhhhttttt object.
Right on Michael! Anti capitalism never works. And the consumer gets the shaft. When you start penalizing good business practices, only the unions and gov't win! Thugs.
This has always been an easy problem to fix, it's about tax policy and import/export laws. If it's cheaper to build something overseas and move it here, you pretty much cannot afford to not to if your competitors are.
Where you have some wiggle room is on the quality, VW had some horrendous quality issues with Jettas made in Mexico for example, although they have other issues now..... But as an automaker, you have two concerns - cost you can sell it for, and how much it costs to maintain the warranty.
Now the other side of the coin. Ford's made for export to USA MAY be moving to Ohio. Ford's made for sale in Mexico and a good part of the world sorry uh uh forget it. Mexico's offering a better deal.....whatever that is and as long as Kerry doesn't screw it up.
Donald Trump recently said that if he’s elected he would take steps to make it more expensive for manufacturers to shift work to Mexico and then export the items back to the United States. Only problem is......he didn't say it first nor urge Ford to make that choice first which they had done FOUR years ago at the urging of another Presidential Candidate. The whole thing with Trump is trumped up. In another words your hero of clay feet just got caught stealing someone else's credit. Kasich did the work on that one. Trump did s--t. If it smells like s--t and tastes like s--t chances are you all just ate s--t. What's for dessert? BOHICA Bend Over Here It Comes Again and it's blowing a Trump-ette.
Bringing 1,000 jobs back to America! Trump is already helping the economy. This will definitely help the employment growth, which, by the way, Obama's administration will get to count as a positive in its' numbers and take credit for.
Obama and his crew of cronies are making it more difficult to make things here. During Obama's rule, our small company went from buying nothing from china to buying 80% of its assemblies and parts from China- IN ORDER TO STAY IN BUSINESS. If the $15 an hour thing goes thru, we will have everything just made in china or go bk.
I hear different reports on the changes in Seattle. I am a WA resident, so it is very close to home - this $15 minimum wage. I see one report that 700 employees are being let go. But then in another report, it's all peaches, and business owners are opening lots more restaurants. Does anyone have the facts?
I don't have enough facts to draw a conclusion. I suspect it's a case by case thing. I can tell you that $15 an hour for our small manufacturing company would kill us off. The Chinese would just take whatever manufacturing was left here
Takes more than a 1000 to make a difference when the negative amount is a thousand times that. The september figures ballyhooed 160 some thousand new jobs when three times that went south. A nice hiccup at best. Are parts makers moving back or still maquilador shops in the same place? Hiccup! Hiccup!
i hear maquiladora operations have been stopped by the Mexican government very recently. There is also 20% import duty on parts brought from china. This is the end of Mexico I think. Why would anyone go there anymore. The USA is bad, but not as bad as Mexico now.
Ford may provide 1,000 jobs but there will be many more ancillary jobs created to support the Ford factory. If true, this is a substantial feather in Trumps cap.
If you think Trump sit quietly and will allow O take credit you haven't been following Trump. :)
The operative words are IF and TRUE. If not true no worries between Obeyme and Trumpet they will be twisted into whatever they deem the truth to be. And the consumer will pay the bill.
I witnessed proof of your statement about all the support jobs. I had such a job. During my semi-retired prison guard spell as a security guard, Mercedes provided me with good pay under a Wackenhut contract. My favorite post for making time fly was controlling a constant flow of truck traffic which included a lot of local Averitt drivers who got to be home every night. As for the trucks, parts made by surrounding companies were being shipped in. And there was another gate for carrying out the brand new cars to dealerships. I worked all the gates. At yet another I had to check in all kinds of business people who needed to visit so-and-so. The first time I worked yet, yet another gate, I thought I was in for a slow yet quiet Saturday. Then about 70 Hispanic cleaners lined up to be checked out, entered into a computer and let in one by one by one by . . . whew! .
The move would only be correct if it actually improved things for the company.
Perhaps its me, and I'm no advocate of Trump or any other candidate at this point, but I don't see anything but sense in wanting to create a more favorable and competitive environment in the US for business.
'hearsay is bovine effluence, first hand observation in the maquilador complex something quite different."
Yes it MAY be true. But if not you won't hear a thing about it unless someone wants to quote or trumpet thin air.
I believe Ford.
For those not familiar with the history of the Ford motor company:
Ford was the first global car company. Ford did not sell it's cars globally from America. Instead, it built production facilities in the countries and regions it wished to sell their product.
So, to the question of Ford changing their mind because of trump is hog wash...history tells us otherwise.
I'm sure Ford has its reasons for agreeing to this. I'm equally sure that whatever product they produce in Ohio they already have an eye for selling somewhere.
Again, the ancillary jobs/business created will likely greatly outnumber the 1000 jobs Ford projects bringing to the plant. The state may lose a degree of tax revenue on Ford but I'm certain it will take its money on the income taxes generated from new jobs.
that the remarks he made about Nabisco showed
considerable chutzpah. What Nabisco was doing
was obviously like what was done in Atlas
Shrugged. The owners of those companies are
the victims of extortion, and it is wrong to blame
them for trying to escape. The people who con-
tinue to vote for government control and extor-
tion are the ones who should hang their heads
in shame. But have they got any shame?
Ha ha!!!
Now let's see what Hazlitt would do with that information. What is the cost under the current system? What is the cost under the Ohio Plan? What is the cost if extra taxation (import duties) are added? Let's see....120 pesos a day six days a week at 16 to 1 exchange rate versus $15 and hour and what is the real hourly wage in Ohio and the real cost of moving a multi million dollar plant anywhere... Whatever the cost it ends up in one place and one place only.
The End User or buyer gets the entire bill. No matter what the bill may be. If it costs more then who loses?
What other businesses will NOT get the money that would have been spent elsewhere in the economy?
The buyer has x amount of dollars to spend. It can all go to Ford and government duties in which case Ford maybe and government for sure get more loot. It will not be spent elsewhere.
Nice article, full of holes you could drive a Ford Truck through and evades the entire story.
Where do people buy? Where they can afford to do so. Perhaps Walmart. They sell everything else.
On the other hand MAYBE the cars cost less as the salaries to 1000 factory employees in Ohio will be less than the duty currently paid? Prove it?
So big time Trumpet only promises to raise costs to the consumer one way ....or the other. IF Congress concurs. Is Dictator Ego showing already.
That's the bottom line. However it turns out he has no skin in the game. There aint no such thing as a free lunch and the buying public always gets the bill.
Sounds nice for the union vote though. They can launder some more campaign funds for The Donald if he manages to order buying from Ford for the Government. Of course UAW at GMC and Chrysler just miiiiiighhhhttttt object.
Just a little.
Where you have some wiggle room is on the quality, VW had some horrendous quality issues with Jettas made in Mexico for example, although they have other issues now..... But as an automaker, you have two concerns - cost you can sell it for, and how much it costs to maintain the warranty.
Donald Trump recently said that if he’s elected he would take steps to make it more expensive for manufacturers to shift work to Mexico and then export the items back to the United States. Only problem is......he didn't say it first nor urge Ford to make that choice first which they had done FOUR years ago at the urging of another Presidential Candidate. The whole thing with Trump is trumped up. In another words your hero of clay feet just got caught stealing someone else's credit. Kasich did the work on that one. Trump did s--t.
If it smells like s--t and tastes like s--t chances are you all just ate s--t. What's for dessert? BOHICA Bend Over Here It Comes Again and it's blowing a Trump-ette.
http://twitchy.com/2015/10/25/donald-...
utm_source=twtydaily&utm_medium=email&utm_campaign=nl
run the two parts together for full link or go to http://twitchy.com and follow the headings.
What does that mean. All you trumpeters and trumpettes got rolled and hoses by a first class looting moocher. Now start whining.
And here's cartoon to go with it! http://media.townhall.com/Townhall/Ca...
The operative words you may remember were IF and TRUE.
If you think Trump sit quietly and will allow O take credit you haven't been following Trump. :)
During my semi-retired prison guard spell as a security guard, Mercedes provided me with good pay under a Wackenhut contract.
My favorite post for making time fly was controlling a constant flow of truck traffic which included a lot of local Averitt drivers who got to be home every night.
As for the trucks, parts made by surrounding companies were being shipped in.
And there was another gate for carrying out the brand new cars to dealerships.
I worked all the gates.
At yet another I had to check in all kinds of business people who needed to visit so-and-so.
The first time I worked yet, yet another gate, I thought I was in for a slow yet quiet Saturday.
Then about 70 Hispanic cleaners lined up to be checked out, entered into a computer and let in one by one by one by . . . whew! .
a change!