Companies will follow cheap labor until there is no cost advantage. First, after WWII it was to Japan, then to Taiwan and Hong Kong, then Central America, now to China and India.
Jobs will come back to the USA when Americans work for the same pay as the lowest wages in the world.
When is the last time you saw a camera, television set, a pair of socks, a bicycle or a toy made in America? Do you give a damn when you save a nickel and kill an American job buying your Chinese junk? What about those cheap Chinese foods and meds which have killed Americans?
Naw, you don't care. Make a few at the top rich, and screw the rest.
Quinn, anyone who doesn't agree with you is a "hater"? You get that talking point from moveon.org or maybe from Comrade Obama's organization? You can count me as a "hater" because I don't agree with any of the garbage you spout...Bill
At some point down the road, probably not in our lifetimes, equilibrium will be reached in labor markets. In other words, labor movement will become inelastic, and there will be no point in moving labor cost to a cheaper country. This phenomenom is inexorable. There is no stopping it. JamesQuinn called it.
Low labor costs have moved to the Pacific rim countries, and at some point in the future, standards of living will improve, driven by human beings' desires to improve their lots in life. As their standard of living improves, labor will move to the African countries, where it will be dirt cheap to exploit labor. They also have vast natural resources, still young in their exploitation. The cycle will continue...
We're only seeing this in a very short time span, and we frame our views based on our experiences. Most of us didn't see the breakout of the improvement of the American standard of living in the early twentieth century, and we won't see the next great break out.
Very nice words Dennis. I've thought this all along. Basicaly, labor is moving to cheaper countries. WHY BLAME any patry for this...unless you wanna divide the counrty, as the cheaper countries would LOVE TO SEE. DIVIDE AND CONQUER.
WE,Americans,need to be smarter than the REST.We need to re-work the UAW to be competative/tell people it's not OK to get mortgages above a ONE person INCOME/or debt themselves to the HILT !
A few years ago on the "Food Channel" or a cable channel similar to that they had a show about candy. They reported then that a lot of candy companies were leaving the US and were moving outside country. They said the reason was because it so much cheaper to buy sugar outside the US. Seems like there is a powerful sugar lobby in DC that promotes high tariffs on non US sugar. Don't know if that is true in "Hershey's" case or not.
Instead of ripping companies for leaving maybe we should ask why? Regulations, taxes, high labor, why are you leaving? Maybe "Hersey" wants to get back in the candy business. To anyone who has ran or started a business in the last few years it soon becomes apparent that you are no longer in the business of making widgets or whatever but you find you are in the business of collecting taxes, filling out forms, and administrating social programs for the state, local, and federal government.
We rip companies for leaving, but yet we do the same thing personally, so why is it wrong for one but not the other. I moved out of the city to the suburbs because I got tired of paying the high property taxes. Do we rip the people who moved from CA, NY, MA, and other high state income tax states to places like NV, TX, FL, TN or other states with no income tax. Those states that are losing business to low tax states need to figure out why, and the US needs to figure out why companies are leaving.
However it may be a little ironic in that Chocolate (bitter water) originated in Mexico and Central America. Sugar plantings were brought from China so that locally grown sugar could be used to sweeten it.
One would hope that if enough industry moves to Mexico, the political system in the country would stabilize and fewer Mexicans would sneak into this country.
I would not want to be a Hershey executive moving to Mexico with all of the kidnappings and drug violence.
Get used to it. This is just the continuation of a process that has been in action for a long time. The southern states are littered with empty, burned out textile mills which once were the backbone of thousands of small towns and cities. Remember when steel was manufactured in Pittsburg, PA? No more, my friends, no more. The only hope for America is creativity and innovation. We must learn again how to make things better, more useful, and of higher quality than our competitors. Products that can't be obtained cheaper elsewhere. We can't follow, we must lead,and government won't do it. It can't do it. Like it or not, it is the greedy, money grubbing capitalists that will save our collective a--es. That is,if there is enough capital left in this country after the current debacle has run it's course. Frankly, if I were a million/billionaire I would take my marbles and go elsewhere to play. I don't think things here are going to be too friendly to business for a while yet. I have often visited countries euphemistically described as "third world". I fear that my granddaughter will live in one. I hope I am wrong.
I'm sure the move had nothing to do with the earlier reports that union employees had done tens of thousands of dollars in damage to Hershey's machinery. Don't recall the reasons for their rage and don't really care.
It would seem the present goal of the present administration is to make government as big as possible, and to take advantage of the victim mentality posessed by so many, ehnic and otherwise, and by installing a program of complete dependence on government insuring Democratic rule forever.
This would satisfy the thirst for revenge that so many like Sharpton and his ilk posess.
Present approval rating changes see to negate this approach.
if mr. obama wants to stop the flight of american companies, he needs to wave his majic wand in two directions. lower taxes on these companies and gut the EPA. nobody want dirty air or water, but the epa has had a strangle hold on companies for years and it needs to stop