Should companies headquartered in the US be intensively discouraged f/ out sourcing the labor in another ...?
The lack of jobs is hurting the economy ... fewer folks paying income tax ... less disposable income ... more ppl soaking the gov for welfare ... a greater likelihood of capacity jails etc.
It seems that we're all in accord about how the out sourcing of labor is a huge contributing factor toward the poor economy. Whether its encourage or discourage, gov is not addressing the issue. There is no economic suffering in the immediate lives of politicians.
- WillLv 71 decade agoFavorite Answer
Let me tell you a little story...
The "Deutsche Bank" building is the tallest structure in Frankfurt, Germany. Among its many offices you'll find spaces rented out by many states in the USA. They maintain permanent presence there as a means of dealing with German companies whom they are tirelessly attempting to get relocated to their respective states in the USA. A few years ago, the good people of the state of Alabama got the Mercedes Benz folks to build a new factory in Tuscaloosa County (near the town of Vance).
In order to sweeten the deal, the state of Alabama gave them a choice series of tax breaks, utility subsidies and infrastructural support. In other words, it cost the good people of Alabama a nice chunk of change. You may well ask, then, why did they do this? (Good question -- thanks for asking).
They did it, (and other states are trying to do it) because they know something about how economics actually works (as opposed to the nitwits in Washington who are cowed by demons of "Political Correctness").
Simple principle... (1=7)... That's it.
When you create one job, you actually create seven jobs. Consider, that plant employs about 11,000 people. That's 11k MORE (NEW) jobs for that area. Now what do people employed there do with their money? They buy homes, cars, they shop, they go to movies, restaurants, clothing, etc. All of this increased "demand" results in new jobs in support sectors of the economy. Where money is, that's where the jobs go. That's why as people moved to the suburbs in the 1950s and 60s, the shopping went with them. Soon, malls emerged, and restaurants, car dealerships, etc, etc, etc, (jobs, jobs, jobs).
Directly and indirectly, that factory will generate close to 90,000 jobs for the state. And think of what Alabama gets for that expenditure of funds: More jobs, more people paying taxes, fewer people on public service, happier constituents -- and more. Whatever the state forked out they are getting back a hundred fold. NOW do you see why the states have offices in Germany (and France, and Britain, etc)?
How do you turn around the American economy? It's not done by threatening businesses by punishing them if they relocate (using "The Stick"); instead, government needs to use "The Carrot" of incentives. Offer tax breaks, and other deals. Offer them huge financial incentive to train and employ the inner city unemployed. This increases affluence, decreases criminality, alleviates poverty.
Offer them grants to keep jobs at home. But you can't do this because the PC police will be all over you for giving breaks to millionaires and big business. The PC crowd only see it myopically and in short terms. They fail to see the long term benefits that accrue to everyone by increasing employment opportunites for millions more Americans. Their knee-jerk hatred of anyone associated with business is crippling America. This need not happen. America has the potential to soar higher than ever, if policy could be made FOR the people and NOT to assuage the Politically Correct.
- PowerLv 71 decade ago
Of course but do you remember in the one Michael Moore movie when he went to the top person & begged this guy to keep a plant in the USA & the man could care less. We don't have people at the top who are there for their hearts, they are their cause they bring in the most money.
I think that movie was Roger & Me. Michael Moore's father worked for GM so he knew about the company & the CEO he shows on the film was also begged by his wife to not send the jobs overseas. As long as we have republicans who help this happen we will not be able to make any kinds of laws that can help us or help motivate them to keep the jobs here.
It would be nice if we had a list of companies who sent jobs overseas & we boycotted them. We could make sure we support the ones who keep the jobs here. The problem is that often an American co, is actually buying parts from overseas. We need to know specifically if the product is made here so we can support the co.
Look at how many people in this country are brainwashed against someone like Michael Moore who has done nothing but work to support the kinds of things that help this country.
- ChasFactLv 41 decade ago
They should be ENCOURAGED, every time you try to punish people they will run from you. Better to give a carrot on a string and lead them to a better place and reward their behavior by letting them become successful. Stop the hatred for others who have more, and let them prosper.
This will provide wealth for all because jobs and ideas come from people who are excited about their own future. That will never change, that is why we became the most powerful creative force on the planet in less than 100 years and why we aren't anymore.
- JustifiedLv 61 decade ago
Yes, and the Fair Tax would help with that and boost the economy.
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- 1 decade ago
Yes they should.Source(s): National Bolshevik AKA National Capitalist
- Michael DLv 71 decade ago
CORPORATE TAXES. I'm done here.