US Can Easily Be Global Manufacturing Capital Again

How many times have we heard that “corporate America is shipping jobs overseas to take advantage of tax loopholes” or that “corporate America is sending jobs to Third World nations to get cheap labor and to make profits”?

Many, many times. And this comes from the Democrat/media left. And it is all fake.

Here is an excerpt from a recent article on foxnews.com:

European plane maker Airbus intends to build its first U.S. plant in Mobile, Alabama, a person with knowledge of the plans told The Associated Press on Wednesday.

Airbus will assemble its A320 jet there, according to the person, who requested anonymity because a public announcement has not been made. The A320 is a widely used plane flown by U.S. airlines including Delta and US Airways.

An Alabama plant would enable Airbus to produce planes squarely in the territory of archrival Boeing Co. It would likely mean lower production costs compared with Airbus' European A320 production lines in Toulouse, France, and Hamburg, Germany. The company also makes A320s in China.

Oh, gee, I thought all the manufacturing companies were fleeing America! Because of all the evil corporations and their quest for profits!

Indeed some companies have been fleeing for decades. But they are not evil corporations seeking profits. The fleeing companies are generally those that have been heavily unionized like the American auto makers that no longer can afford to pay the outrageous union wages, benefits and pensions here in the United States or to tolerate absurd union work rules or to withstand strikes and other labor actions.

Meanwhile foreign car companies like Mercedes, Toyota and Hyundai have been opening manufacturing plants here in the US in the non-union South for decades, and Airbus is planning to follow suit.

Airbus and the foreign car makers are doing this to get away from their heavily unionized and regulated home nations. Airbus is European. BMW and Mercedes, from Germany, have facilities here in the US as do Toyota, Nissan and Honda (Japanese) and Hyundai and Kia (South Korea). Because socialist Europe and Asia have become increasingly unaffordable for manufacturing.

Meanwhile unionized American companies like General Motors, Ford and Chrysler have been moving manufacturing out of the US for decades.

Lucky Alabama. The people there who will work for Airbus are going to prosper by shunning socialism. And the workers at the Southern ‘transplant’ car factories do not want unions. Those workers are making great wages and don’t want the unions destroying their companies like unions ruined General Motors and Chrysler.

Look at a map of America. The most devastated cites like Detroit, Flint, Michigan, Cleveland, Ohio, Buffalo, New York and other Rust Belt cities once were the most prosperous cities in the world. Yet now they are ruined. Why?

The most significant part of the answer is that these cities were all heavily unionized and the labor unions destroyed the cities with outrageous wage demands on their industries when times were good. And constant strikes.

Then as markets changed, the labor costs could not be sustained. The companies were paying so much for labor that they did not have enough capital to change with the times through capital investment in new products and processes. So they went out of business instead.

And that is why General Motors and Chrysler had to be bailed out – because of their high labor costs from the unions. The taxpayer thus has ended up subsidizing the unions.

Today in America the very liberal and heavily-taxed and heavily-unionized states (New York, Illinois, Massachusetts etc.) are declining economically with younger, productive, skilled and educated people leaving by the thousands every year. Meanwhile the poor, sick and elderly are left behind.

Meanwhile the non-union, low-tax states are prospering and growing with influxes of new blood. As expected and predicted.

This idea that American manufacturing is dying is all a lie from the liberal left. We can manufacture any product here in the US to compete in the world market. Because we have the smartest people in the world and the most efficient manufacturing.

The only thing stopping manufacturing is endless regulations, restrictions and taxes from our governments and from environmentalists, along with harassment from American labor unions and from Democrat trial lawyers. The United States now has the world’s highest corporate tax rate.

Just look at Caterpillar, the heavy-equipment manufacturer. It is a successful global brand. But Caterpillar may move out of Illinois where it has been based since its founding, and where it has 23,000 employees, and move to Texas or to another business-friendly state.

Because Illinois is a heavily-taxed and heavily-regulated state run largely by corrupt Obama-type Chicago Democrats. Caterpillar may have to move just to stay in business.

Meanwhile General Electric, which has operated a railroad locomotive production facility in Erie, Pennsylvania for decades producing superb engines for the US and global markets, is going to open a new facility in Fort Worth, Texas.

Is there a pattern here?

Of course. These essential wealth-producing businesses are fleeing liberal America and going to conservative America just as Airbus and Mercedes are fleeing socialistic Europe for the better economic climate of the Southern US.

Here is an excerpt about labor unions from Trains magazine of June 2011, talking about short-line railroads (those that have small amounts of track):

The likelihood of any new short lines arising from former Class 1 branch line sales or leases grows smaller every day. In late 2010, for example, rail unions challenged two such proposed transfers from Norfolk Southern to local operators. According to (the unions’) Surface Transportation Board filings, these transactions” will diminish the safety of rail operations, will harm the interests of railroad employees, and will have an anticompetitive effect.”

Even though the record favors short lines each of these areas, the union challenges remain and the STB must consider them, delaying the process and adding expense to the transaction. Abandonment may well become the preferred alternative to shortline railroading.

Thus the unions are using legal power to threaten private enterprise simply for the sake of threatening private enterprise. This obviously is very harmful to the economy. Are these short lines better off operating in private hands or going out of business?

The answer is obvious…

So indeed there is no rationality to the argument from the unions or from Democrats. Their positions are always extreme and they always focus on one thing – money, money and more money.

For themselves, that is.

Many industries have been ruined by union tactics. The American steel industry in the 1970s was pushed right out of existence largely by union demands and strikes. US freight railroads were undermined by a convergence of labor union demands and strikes, and massive government intervention into railroad operations. Only deregulation in 1980 saved them.

Thus Airbus now is going to open a plant in Alabama. Because most of the people in Alabama are hard-working folks, like most Americans used to be before the Democrat party and the Liberal Media got hold of them, unionized them and told them that capitalism is a raw deal and that they shouldn’t participate in it by doing a good job or showing up to work every day.

Indeed increasing numbers of Americans simply will not work or will not work hard unless they happen to be conservatives or live in the conservative states where liberalism has not polluted their minds. Where the labor unions have not taken the workers by the throats and pushed their faces into the dirt and threatened them.

The economic future belongs to those states and nations that reject socialism. Even communist China is using capitalism to save itself.

Meanwhile it is the actions of the Democrats here in America that have killed American industry and its workers and driven jobs overseas. Fortunately millions of Americans and dozens of states have seen the truth. Before it is too late.

(Please bookmark this website. Thank you, Nikitas)

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