Next Low-Wage Haven: USA

[Karmadillo]

http://www.commondreams.org/headline/2011/08/06-1

Published on Saturday, August 6, 2011 by Labor Notes
Next Low-Wage Haven: USA
by Jane Slaughter

Jokes about the U.S. becoming “Europe’s Mexico” are commonplace, but now high-priced consultants are pushing the notion in all seriousness.

They’re predicting that within five years certain Southern U.S. states will be among the cheapest manufacturing locations in the developed world—and competitive with China.

For years advisers like the Boston Consulting Group got paid big bucks to tell their clients to produce in China. Now, they say, rising wages there, fueled by worker unrest, and low wages in Mississippi, Alabama, and South Carolina mean that soon it won’t be worth the hassle of locating overseas.

Wages for China’s factory workers certainly aren’t going to rise to U.S. levels soon. BCG estimates they will be 17 percent of the projected U.S. manufacturing average—$26 an hour for wages and benefits—by 2015.

more...

[dkf]

1. As oil goes up so does the cost of transportation.

[GSLevel9]

2. well if the cost of living in those Southern states is reasonable...

then it may be better than what we're doing now.

[Brigid]

3. Not surprising.

I've been hearing for a while now that some companies that located overseas in order to pay lower wages have found it to be counterproductive.

[colinmom71]

5. You have that right...

Costs of shipping and adhering to US standards for vehicles made it cheaper (over a decade ago) for Honda, Toyota, and BMW to establish factories in southern non-union states. Though these states do also have lower "cost of living" standards than many other US states. Korean company Kia has since followed form...

[gateley]

4. Greed. The rich got more and more greedy, and they did this,

and will continue.

Shameful. Soulless.

[Initech]

11. Greed is an addiction, and we are dealing with the greediest motherfuckers in human history.

These people are addicted to money - it's like crack to them. It's totally unreal what is happening.

[Trajan]

6. This downturn is driven by a lack of consumer spending ...

And that lack of spending is driven by the lack of discretionary income ...

And that lack of discretionary income is driven by the lack of decent wages ...

You don't want to pay wages ? .... Fine; then don't expect to get any richer .... Dont expect to have a growing fruitful economy if you arent willing to keep the pump primed ....

ALL the gluttonous and greedy low wage FUCKS have essentially killed their own cash cow ... They have throttled the economy because they dont want to pay for the value they receive from workers ...

Wages = stimulus ....

[dgibby]

7. I think this was the goal all along.

How else to make Globalization work?

[sabrina 1]

8. Many people said it. And traitors in our government

have worked hard to make it happen. People who were elected. First Republicans, now many in the Democratic Party who adhere to many of the same policies. That is why we have seen so much 'bi-partisanship' on issues where there should have been a clear line between both parties.

It used to be puzzling to see many Democrats going along with some of these things, like the wars etc., agreeing on SS 'reform' eg, but not anymore.

I think it was the goal.

It very well may take an uprising, not a bloody uprising, but massive strikes, huge demonstrations that do not end until we get rid of those in this government who have contributed to the demise of America.

One thing we can do is NOT elect people who belong to the 'New Democrats' or the 'Third Way'. Now that we know how their policies have contributed to turning this country into a second world nation on its way, if someone doesn't stop them, to being a third world country in at least some areas.

[Lex]

9. This is what the tea-baggers want.

They just don't realize that most of them will be the low-wage workers with nothing.

[femrap]

10. There will be a bunch of

$8 to $10/hour jobs....with no bennies.

Tax the Rich.

[madrchsod]

12. it already is....

that`s why they are moving here..cheap land, no taxes for years,docile workers,and a stable government.

[aint_no_life_nowhere]

13. Republicans are now heavily pushing for a tax holiday for U.S. corporations abroad

When I called my repuke Congressman last week to urge that he not cut social security, his staff's response to our fiscal problems was to implement a tax amnesty to repatriate the $2.5 trillion held offshore by U.S. corporations doing business abroad. This is a wonderful idea, isn't it? The Republicans will not want to enact any legislation requiring the $2.5 trillion to be invested in jobs, as that would be harmful regulation by the big bad federal government. Instead, they will be free to use that tax free capital to speculate, buy gold, pay dividends and bonuses, and just send the rest right back offshore. In fact, a tax amnesty would only encourage shipping more jobs overseas and the retention of more trillions in offshore tax havens hoping for more tax holidays down the road. It would lead to fewer jobs for American workers and lower wages, which is probably what the Republicans want anyway. Why is it that we let the Republicans suggest policies that are all carrot and no stick for corporate America? Sure, an incentive for them to bring the money back and create jobs such as waiving taxes would be great. But they need to actually create jobs with it and be punished heavily by increased taxes if they don't use the money appropriately.