http://www.gochinasourcing.com/outsourcing-nike/
How can the government limit big corporations from outsourcing manufacturing jobs?
Big businesses have moved to China after production costs here have risen after workers received better rights. In China, companies like Nike are making millions on the backs of abused workers. The Chinese government isn’t really an issue there since they want to attract as many foreign companies as possible.
How can the US government stop american companies from setting up production in foreign countries?
What powers does the government have over corporations in general?
The US Companies will just go bankrupt. They wont be able to compete on a global market and foreign companies will produce the same exact products in China and sell them in the USA for a cheaper price. So you would essentially have to cut off all trade with china which would bankrupt the USA over night.
The Government can’t limit big corporations from outsourcing manufacturing jobs if they even hint at it many of them will entirely leave the US. I know if I owned a fortune 500 company and the US started to even TALK about this I would move the company to another Country. Trust me it’s not hard to find a country that wants to bring a fortune 500 company into it’s Economy.
If you want to bring and keep manufacturing jobs to the USA again. You need to make the USA friendly to businesses again. It’s not right now. Every single business deals with massive regulations from bureaucracies.
In CA the dry cleaning industry has been under constant attack from Environmental bureaucrats. about 7 years ago they made every single dry cleaner replace their boilers that costs any place between 30-80 thousand dollars depending on the size of the boiler. They just recently made every single dry cleaner in CA replace their dry cleaning machines and banned perc. Never mind that the alternative solvents for cleaning don’t clean as good and cost 3 times as much to buy and 4-5 times as much to use (cycle times are longer). A new dry cleaning machine costs any place from $75 thousand dollars to $250 thousand dollars.
Now factor in the insane cost of labor. It’s about 25-30% higher then what the employees get paid. Businesses have to make tax contributions to social security medicaid medicare and federal with holding even state income tax. They have to pay for your unemployment benefits (which cost around 3-4% of their gross payroll) but that rate depends on how many claims the business has had against it. Can’t forget the insurances they are required to provide such as workers compensation and a general liability policy.
Now factor in the fact that nearly 2/3 of all businesses in the US get sued at some point or another. It doesn’t matter if the business wins the business still loses. Representation is not cheap and can cost hundreds of thousands of dollar even millions.
this all leads to increased production costs. The companies want to be able to compete in a global economy and make money out side of the USA. So you can’t blame them for wanting competitive production costs.
Slavers of the 3rd world