How to Make an American Job Before It's Too Late: Andy Grove - Bloomberg

[chadbag]

http://www.bloomberg.com/news/2010-07-01/how-to-make-an-american-job-before-it-s-too-late-andy-grove.html


I found this interesting. While I am a free trade sort of guy, I can sympathize and support much of what Mr. Grove says. True Free Trade does not exist in the world so why should we support and finance the rest of the world as if it did?

I am going to try and contact Mr. Groves and ask him what he is doing to advise Intel to take the lead on this. We should also tell that to Steve Jobs and other big tech titans (MS, Oracle, etc). And the big 3 Automotive manufacturers.

One thing I would modify in Mr Groves suggestions is that items made offshore, that are imported and sold in this country by a non US company would be exempt. Only offshore built items made for and sold by American companies would be subject to the "offshore tax" he suggests. Ie, if I go to the store and Xin Tang Heavy Industries, a Chinese company, is marketing and selling some sort of widget, made in China, then that would not be subject to the offshore tax since that does not represent US jobs moved offshore by US companies. But the latest Apple or HP or Dell item, made in China, would be subject to the tax, since these are US companies who moved their manufacturing offshore.

[ChicagoTex]

True Free Trade does not exist in the world so why should we support and finance the rest of the world as if it did?

This, a thousand times, this.

Free trade would be swell if everybody played by the rules, but the fact of the matter is America is trying to play the free trade game with hundreds of cheaters. Is it any surprise we're losing?

[Business_Casual]

This won't work.

The reason things aren't made here are simple. Unions, slip and fall lawyers and government regulations.

If you want to do something to restore American greatness, those three things should be your targets.

B_C

[chadbag]

This won't work.

The reason things aren't made here are simple. Unions, slip and fall lawyers and government regulations.

If you want to do something to restore American greatness, those three things should be your targets.

B_C

That is part of it. It is not the complete answer. Eliminating corporate taxes is a big part of it. Stop the government support and promotion of unions. Only have the really necessary regulations. Those are important. Liability ("slip and fall lawyers") does not really play a role since the companies who build overseas still sell the products here and are subject to them.

But the will to do so as Mr Grove explains is also an important part. Instead of focusing on tomorrows financial results, look at the long term costs of moving your manufacturing overseas. The long term costs probably make it not worthwhile but nobody looks at the long term costs (loss of markets at home, loss of expertise and losing out on future booms, etc)

[thopkins22]

What would stop the companies themselves from moving offshore taking even more jobs and tax revenue with them as opposed to just the manufacturing jobs?

To me, the fact that the rest of the world "doesn't play fair" is no reason to punish the American consumer.

[chadbag]

What would stop the companies themselves from moving offshore taking even more jobs and tax revenue with them as opposed to just the manufacturing jobs?

To me, the fact that the rest of the world "doesn't play fair" is no reason to punish the American consumer.

The American consumer is punished much more by the moving the manufacturing offshore than by any slightly lower price that is achieved on goods by doing so. The loss of jobs and ultimately economic competitiveness does far more harm.

[GermanSynergy]

We're in for a long, cold winter, fellas. :(

[ForTehNguyen]

This won't work.

The reason things aren't made here are simple. Unions, slip and fall lawyers and government regulations.

If you want to do something to restore American greatness, those three things should be your targets.

B_C

dont forget the minimum wage laws and hostile tax system as well

[Business_Casual]

dont forget the minimum wage laws and hostile tax system as well

That could be put under the rubric "regulation." But I take your point.

Time was, made in America was a symbol of quality and durability. When I was a boy, we had appliances that lasted decades. Now you are lucky to get 2 or 3 years out of your Chinese-made Dirt Devil. Who here has a toaster older than five years? Very few, I would wager.

I wonder if the Romans were sitting around complaining about the quality of imported swords and olive oil just before the Barbarians arrived...

B_C

[LOKNLOD]

Liability ("slip and fall lawyers") does not really play a role since the companies who build overseas still sell the products here and are subject to them.



Not so much a liability issue, but those "slip and fall lawyers" coupled with bad workers comp law can be crippling for manufacturing.

[HowardCohodas]

What you tax you get less of. What you subsidize, you get more of.

Is creating more jobs and more tax payers any more complicated than this? Oh yes, now I remember. Politics is involved. Never mind.

[ralph]

That could be put under the rubric "regulation." But I take your point.

Time was, made in America was a symbol of quality and durability. When I was a boy, we had appliances that lasted decades. Now you are lucky to get 2 or 3 years out of your Chinese-made Dirt Devil. Who here has a toaster older than five years? Very few, I would wager.

I wonder if the Romans were sitting around complaining about the quality of imported swords and olive oil just before the Barbarians arrived...

B_C

There's alot of truth to that..My mom (she's 80) has a eletrolux sweeper that she bought in the late 50's it still works..she used it until about 10-12yrs ago it's now in the attic, I've no doubt it'll still work if I plugged it in..Back then, things were made to last, the idea of "planned obsolescence" was unheard of. I grew up in the 60's..sadly, I've watched as this country has degraded over the last 40 + years..If something is'nt done soon, we, as a country will enter the third world..I figure that's also part of Pres. O's long term plan...