Quote:
Originally posted by 911pcars
These manufacturers have plants here (Kentucky, Tennessee, Illinois, etc.), not because they wish to pay higher labor wages, but because they don't. These sites don't pay union wages. They also reduce transportation costs; the markets for these cars is here - makes sense. Many parts vendors are also here so that helps the employment figures a little.
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Why aren't the Germans enacting laws to eliminate this evil outsourcing to the US? After all, Germany has unemployment in the 9-11% range. Should we expect foreign companies to "outsource" to the US while expecting our jobs to stay?
Interestingly, from a quick search:
http://www.boston.com/business/articles/2004/01/08/germanys_unemployment_rate_rises/
"While three years of near-zero growth have boosted Germany's jobless rate, many economists say rules on hiring and firing are so rigid that companies hire fewer people because it's so difficult to drop workers in a slowdown.
In an attempt to deal with the problem, Chancellor Gerhard Schroeder has pushed through limited measures aimed at loosening labor market rules and trimming the burden on business of generous welfare state benefits."
Hmm, so regulations and generous welfare benefits are crimping the marketplace. Wow, who woulda thunk it?
Jurgen