You’ve heard it all before, taxes and regulations are the reasons why American has lost more than 40,000 U.S. manufacturing plants between 2001 and 2009 (including 36 percent of factories employing more than 1,000 workers). Also From 2000 to 2009, 5.5 million or 32 percent of all manufacturing jobs were lost, all because of the oppressive regulations of the EPA and taxes.
Well here is a great story coming right out of China that runs smack in opposition to what the cheap labor conservative in the Republican Party have been telling you.
Fortunique, which operates a factory on the outskirts of Guangzhou, was one of the first wholly foreign-owned factories in China and has been operating there for more than two decades, making plastic orthopedic products, polyethylene surgical gowns, coverings for ultrasonic probes and other health-care products.
But rapid increases in costs, like a 20 percent increase in wages in the last year, are pushing a firm that was an early adapter to China to find a new low-cost manufacturing spot, said Director Charles Hubbs, in an interview at the company’s factory.
During the last five years, wages have doubled, Director Charles Hubbs said, as the rising Chinese yuan has raised some costs that have been hard to pass on to customers.
Hubbs said he looked at moving his manufacturing elsewhere in China, but thinks that wages in other parts of the country will rise quickly and within three years any advantage would disappear.
The Fortunique factory sits near former shoe factories, once a mainstay of the local economy but now themselves victims of rising costs, and a massive train station built as a hub for the country’s new 250-mile-per-hour, high-tech bullet train system.
Fortunique will keep its plastics operations in Guangzhou, but Hubbs said sewing and other assembly will have to move to a less-developed country in Asia like Cambodia or Myanmar, where factory wages are $50 a month, compared with between $300-$400 for the same work in China.
CAN YOU BELIEVE THAT LAST SENTENCE! $300-$400 dollars a month is TOO MUCH for this company!!! They need to move where pay checks are $50 dollars a month!!!!
This company isn’t leaving China because the EPA is forcing them out, HELL you can cut the smog with a knife in China.
Vernon Hsu, a professor of managerial economics at the Chinese University of Hong Kong said,
“Chinese firms need to start to go out and take advantage of cheaper labor costs elsewhere…”
The cheap labor conservatives, like Mitt Romney find this Ok and view it as a bonus for the American economy where 40% of our GDP is derived from the financial industry. Mitt Romney has outsourced and destroyed millions of lives and crushed cities that rely on manufacturing to fund their schools, police and fire departments.
You see what has happened in the world is the banksters and investors have been placed on the altar of capitalism, rather than the industrialist, like Henry Ford, who paid above union wages so his own employees could buy his product.
Cheap labor conservatives have infiltrated the Republican Party and will destroy the middle class of America if they continue to find support of the 40K dollar Republican voter.
Image: Globalism Scorecard