Trump Vows to Put CEOs to Work Restoring US Manufacturing

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An employee at auto plant probably makes $25/hour for some repetitive work on the assembly line. The company will immediately reduce it to $16/hr.............take it or leave it.

Upto 3 million "felony tagged" illegals will soon be deported. They must be doing some work to sustain themselves. Even if only 1/3rd of them worked at $8/hour, their jobs might be made official requiring $10-11/hour wages. Lots of welfare based guys will have to fill in........ like it or not.

However, this is only 1/5th of the story. As to how will a business replace $2.5/hr chinese labor is the challenge and there is no answer to that. Down the road robots might replace some work but it would be tough matching $2.5/hour even for the robots. Current cost of robotics is around $8/hr in the US.

 

[OddTrader]

https://elitetrader.com/et/threads/...ative-to-countries.307005/page-2#post-4413066

https://elitetrader.com/et/threads/...work-restoring-us-manufacturing.307116/page-2



One feature of this world states Cosmopolitanism system is that two neighbourning states can have very different state-wide minimum wages.

The states with much lower minimum wages can provide much more attractive labours for labour intensive industries, mainly manufacturing products and processing farming produce.

Also seasonal supply of low cost and hence low overhead labour forces can be provided for other states which offer higher minimum wages.

Residence rights, which would be mainly for state medical treatments and state education/schools, may not be granted to residences of other states. Seasonal contracting labour from neighbouring states can be sent/transferred back to their native states for medical treatments.

Without employing/deploying this world states Cosmopolitanism system, basically the existing developed countries, currently bearing relatively much higher minimum wages would no longer have a healthy manufacturing industry again for their next generations.

Their future economies would be getting worse and worse year after year. A big impact negatively to the economy of the whole world in long term!

 

[toc]

https://elitetrader.com/et/threads/...ative-to-countries.307005/page-2#post-4413066

This is an extremely complex economic issue. That lower wage labor from other countries hurts the manufacturing of advanced nations........is only partially true.

When US companies make products in China at $2.5/hour and pocket good net 20% returns vrs only 5% locally, then they have more funds available to invest into other technologies and assets to fine tune their businesses, improve their products or even divest into other industries.

That US companies like Apple and others prefer to park their "slave labor" sourced profits in the tax haven countries like Cayman Islands and Bahamas and not pay any taxes to US government is an issue that needs a very serious glance. Am not sure, but US companies have more than $1 Trillion parked in the tax havens..............profits on which they have not given any taxes to the US government.

Guess Trump would not even look into that as it would hurt his support base or even worse trigger the lobbies and groups that have the power to topple him from the throne.

 

[OddTrader]

This is an extremely complex economic issue. That lower wage labor from other countries hurts the manufacturing of advanced nations........is only partially true.

When US companies make products in China at $2.5/hour and pocket good net 20% returns vrs only 5% locally, then they have more funds available to invest into other technologies and assets to fine tune their businesses, improve their products or even divest into other industries.

That US companies like Apple and others prefer to park their "slave labor" sourced profits in the tax haven countries like Cayman Islands and Bahamas and not pay any taxes to US government is an issue that needs a very serious glance. Am not sure, but US companies have more than $1 Trillion parked in the tax havens..............profits on which they have not given any taxes to the US government.

Guess Trump would not even look into that as it would hurt his support base or even worse trigger the lobbies and groups that have the power to topple him from the throne.

All (macro) economic policies are complex by nature.

When one day the US nation has accumulated huge deficits, getting bigger and bigger, and the giant multinational corporations (MNCs) registered/based in the US are keeping much much more money than the US nation, everything will change, when people see the trend.

Partly also because Trump could be jealous, not liking other super riches!

Besides, Bannon is a Leninist!

Therefore a Big change! LOL

Steve Bannon, Trump's Top Guy, Told Me He Was 'a Leninist' - The ...

www.thedailybeast.com/.../steve-bannon-trump-s-top-guy-told-me-he-was-a-leninist.html - Cached

21 Aug 2016 ... The Breitbart executive director turned GOP leader boasted at a party about his goal of destroying the conservative establishment. ... “Lenin,” he answered, “wanted to destroy the state, and that’s my goal too. I want to bring everything crashing down, and destroy all of ...

 

[Michael J. Fletcher]

Trump wants to 'bring back' the jobs like assembling flat-screen TVs and mobile phones paying $2.50 per hour. Instead of being happy we can exploit poor-as-fuck people in Bangladesh and China to do all the dirty manual work for us for rock-bottom prices... instead Trump wants to bring back jobs that NO ONE HERE WANTS TO DO!

Anyone buying this 'lets bring back those good old jobs' has missed his economics 101 classes.

Thanks, I thought that I was crazy when I talked about it to other people. It's hard to believe that so many people would believe in this nonsense what he's trying to do.

 

[Michael J. Fletcher]

You are missing the point. Trump cares about displaced factory workers.

Sorry, but no. He invented this whole idea that other countries steal our workplaces and so on, for one thing, it's bs these jobs will never come back no matter what he does.

 

[felixbocharov]

Journalists

Looks like they'll have to leave the country, expect Faux News, of course.

 

[lovethetrade]

A good article on the subject

http://www.smh.com.au/business/comm...at-jobs-promise-is-a-lie-20170222-guijx3.html

 

[newwurldmn]

This is an extremely complex economic issue. That lower wage labor from other countries hurts the manufacturing of advanced nations........is only partially true.

When US companies make products in China at $2.5/hour and pocket good net 20% returns vrs only 5% locally, then they have more funds available to invest into other technologies and assets to fine tune their businesses, improve their products or even divest into other industries.

That US companies like Apple and others prefer to park their "slave labor" sourced profits in the tax haven countries like Cayman Islands and Bahamas and not pay any taxes to US government is an issue that needs a very serious glance. Am not sure, but US companies have more than $1 Trillion parked in the tax havens..............profits on which they have not given any taxes to the US government.

Guess Trump would not even look into that as it would hurt his support base or even worse trigger the lobbies and groups that have the power to topple him from the throne.

That's a very interesting point. If trump wanted to discourage US companies from using foreign labor he should be pushing higher taxes for those firm rather than giving them tax amnesty on foreign income parked outside.

 

[java]

Missing the point. Has nothing to do with money or trade imbalance. Has everything to do with restoring dignity to a middle class that has been made obsolete. Doesn't fall into the category of economics.