Over the past 20 years I've listened to people complain that companies are taking jobs overseas to avoid paying "reasonable" or "living" wages. Recently I've read an article saying that Harley-Davidson motorcycles (now built in Milwaukee) is considering a move to cut labor costs.
Here in America we enjoy so many luxuries and it is almost as if we think we're entitled to low prices and top quality on everything we buy. We give little thought to what someone should be paid when we purchase a good or service, we just want the lowest price. But let the manufacturer or service provider say they're moving away because they're losing money and suddenly they are a greedy corporation motivated only by profit.
Where we go from here is going to be a real challenge because the United States of America is fast losing its claim as driving the world's economies. Countries like China and India are becoming bigger consumers and at a rapid pace. Therefore, manufacturers will need to produce the goods and services those consumers will buy at a price they can afford. Since those consumers are already lower-paid than American workers, product prices will have to be low.
The same thing happens in the automotive field. People want the cheapest repair with the best warranty, and have it done like a fast food drive through. No regard for the overhead that a repair shop incures.
ReplyDeleteWhere do people think the money for a $15,000 alignment machine comes from? Oil changes at $19.99? Let me tell you....we lose money at
that price.
Ray M
More than likely, China and India will go through the same cycle. As the workers earn more, they want more, the cost of labor will go up and the manufacturang will be outsourced. Eventually most manufacturing will be mechanized, or done with robots as we run out of countries that supply cheap labor. Ultimately, if the USA is to stay in business, we need to produce products that are consumed outside the USA.
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