America needs to deregulate and reduce taxes in order to bring manufacturing back, right? We all know the talking points, but I am about to point out that once again, corporations leave the United States to take advantage of low, slave labor, wages.
In a survey by Hong Kong-based Political and Economic Risk Consultancy Ltd (PERC), American executives were about regulatory conditions in the United States to provide a benchmark against which to assess the Asian scores, according to the Economic Times
India was rated worst in terms of over-regulation, scoring 9.16 points out of 10, followed by China with 9.04 points, Japan in third position with 3.28 points and the US at fourth with 1.51 points.
Hong Kong received the best score in the survey of 0.98 point, while Singapore was second with 1.08 points, according to the survey done in the last quarter of 2010, based on responses from 1,370 executives.
Now Honk Kong is the center of commerce in China, technically. They are less than 1 point behind the United States. China itself is just about 7.5 points “more regulated” than the United States.
India ranks the worst in the world according to this survey. Imagine, all of America’ manufacturing has left to HIGHER regulated countries. SHOCKER! I thought they left the United States to escape our over bearing regulations. It’s taxes right? They left to China because they have a lower effective tax rate, right? WRONG again! Back in 2007, CATO published a column citing Canada’s CD Howe findings, that China had the highest effective tax rate of all major economic powers.
So before 2007 American corporations left to higher tax and higher regulated countries. Why? Because your pay cut into their profits and Wall Street’s dividend checks that is why the GOP will continue to NEVER acknowledge that it is wages that drove American corporations overseas and blame boogeymen.