Quote from Rearden Metal:
Letâs say I need to build a factory and pick a location for it. Well, if I place my factory on U.S. soil I need to worry about B.S. sexual harassment lawsuits, other B.S. lawsuits (I slipped and fell and my coffee was too hot, so Iâm suing for $50 mil in damages). I need to worry about the EEOC and/or Jesse Jackson barging in my doors and shaking me down over a âlack of sufficient diversity in the workforceâ. I need to worry about the EPA shutting me down because Iâm supposedly not doing enough to protect the habitat of the white-shelled river slug. I've also got stacks of needless regulatory red-tape paperwork to deal with, and must hire an army of lawyers & bureaucrats to handle it.
If I open my factory in China or Indonesia I donât have to worry about any of these needless hassles- I can just build the factory and get the work done. America has become uncompetitive due to too much interference from sleazy lawyers and even sleazier government regulators interfering with the natural flow of business, and Atlas is shrugging. I blame these factors far more than any union.
Let's not forget the huge medical insurance costs which can be like $1,000 per month per employee, and that is if they are single. If they are married with children, it can be $2,000 per month per employee. Plus many companies offer dental insurance, prescription plan, vision plan, 401k, matching, and profit sharing, or a pension plan. Companies have to match what employees pay in social security taxes, which is 7.65% of an employees' pay, and pay federal unemployment compensation taxes, state unemployment compensation taxes, and workers compensation. Plus the employees want tons of paid vacation and holiday time. They complain about their boss all day, spend half the day surfing the web, and gossip about other workers.
If workers in the U.S. worked without any benefits or paid vacation time, then we have a remote chance of bringing jobs back to the U.S., and I emphasize remote. Even then, I don't think it will happen.
Once manufacturing in Asia becomes too expensive, which it probably will one day, next stop is Africa, where you can find workers for $2 per day. How in the world can western countries compete with that?