… or outsource labour and stay afloat within you own country? Karl makes a good point, quoting Sanders at the start:
“I call on Mr. Trump to make it clear to the CEO of United Technologies that if his firm wants to receive another defense contract from the taxpayers of this country, it must not move these plants to Mexico,” the senator from Vermont said in a statement.
Why doesn’t Sanders (or Trump for that matter) talk about what’s really going on here?
The media has, accidentally. They have pointed out that the cost of assembling air conditioners — that is, manufacturing labor — in Mexico is about $3/hour. Incidentally it’s probably not much more for assembling cars.
There are two options folks:
1. Make it uneconomic for companies to take such an action by causing the cost of labor there to reach effective parity with the cost here, in which case the offshoring of labor will disappear
2. Accept a $3/hour wage here in America as the labor rate to assemble air conditioners in Indiana.
The logic and math on this is pretty simple; if a company can have labor performed for $3/hour they will not pay $20/hour. Nobody in their right mind will. The problem is that you can always find a third-world ****hole where the rate of labor is $3/hour or less.
As such you either drag your wage rate down to that price or you make it uneconomic for companies to do this sort of thing.
Yes, it’s the old conundrum, innit? Support your own industry, forcing businesses out of business or else keep them afloat through outsourcing the labour. There’s no escaping this economic reality.