If the average American citizen actually paid attention to the utter nonsense coming out of the Republicans’ mouths in regards to economics and the economy, the GOP would be expelled from our national and local political discussions. The old but obviously bought and paid for lie is American manufacturing left the United States because of the government, taxes and regulations. If that’s the case, Republicans need to explain the latest exodus of manufacturing from China to other lower wage countries in Asia.
Coach the brand name accessories manufacturer is the latest corporation to move out of China due to high labor costs. Yes, even the Chinese labor costs are beginning to squeeze the ultra-greedy capitalist bottom line. A healthy profit margin is not enough, ever. They need more and more at the expense of the factory workers all over the world losing their jobs.
According to the Financial Times, Lew Frankfort, Coach’s chief executive, said that over the next five years the company would cut its China production to 40-50 per cent of its total from 85 per cent at present by opening factories in lower-wage economies including India, Vietnam and the Philippines.
Mr. Frankfort stated at a conference of the Committee of 100, a Chinese-American group in New York,
“We are subject to rapid wage increases in China among employees working in the manufacturing sector, which we support. We work with factories to offset high labour costs through improved efficiency and lean manufacturing.”
You support rapid wage increases? Then why are you moving, why are you trying to NOT SUPPORT those higher wages by leaving the country?
“We are beginning to diversify production out of China into other Asian countries that are not enjoying that level of prosperity.”
Now, Mr.Frankfort makes $1.2 million in salary with a total compensation package of $13 million dollars, but a Chinese factory worker making $10 a day and living in dormitories is too expensive for his company.
In 2010 Coach realized a HUGE increase in profits, which jumped 26% total worldwide in the second quarter and revenue at stores open at least a year rose 12.6% in North America.
Coach’s net income rose to $303.4 million, or $1 per share, from $240.1 million, or 75 cents per share, last year. Revenue increased 19% to $1.26 billion. But this obviously isn’t enough
These corporations loathe the middle class. The only people allowed to make a decent living are executives. If you’re a blue collar middle class factory worker, you are just a leach on the back of profits. Just as the Chinese working class was beginning to make a living, Coach and many others will do exactly what they did to the United States 30 years ago; slide the run from underneath them.
If we were to listen to the Republicans here, you would think the country of China raised taxes or regulations. We know that’s not true. Even the CEOs of these companies have plainly said it, IT IS HIGHER WAGES that caused them to make this decision.
Still we have Senators like Scott Brown and Speaker of the House John Boehner who continues beat the 30 year old drum, even though it is a total lie. The only people who suffer are average Americans trying to make a living in this country.