carter fuel pump made in korea?
I know this is a little off topic but it is thought provoking. What must be done to get the parts stamped with "Made in the USA" on them again? I sold auto parts for a short time and I could tell the USA stuff from the overseas stuff most of the time just by looking at it. What's got to happen to get the foundry's back open and the mills spinning again here?
Working the equation backwards to get the USA foundry's and mills back open in the usa looks like this::
Taking company profits out of the equation: Meaning lets say that a USA company is making a 30% profit in china, then we work the equation for them to make a 30% profit in USA. You also have to take out the cost of good sold, since the end buyer has already proven they are not willing to pay more for a USA made product. So profit and cost of product sold have to be equal whether made in china or usa. Only thing left to change is cost to produce item.
To achieve this you have to work the equation as follows:
CHINA Profit = 30%
Profit = cost of goods sold less cost to make
Cost of goods sold MUST equal the same for CHINA and USA made good since the public has already proven they will not pay more for a USA made good.
So you are left with the cost to produce the good(COG) = Labor(L) + Material(M) + Overhead(OH) + Taxes(T)
So Either ALL of the some of these items need to cost less in the USA to move the manufacturing back to the USA just to make the same amount of profit. It would happen faster if you can make more profits (why??) companies move faster with incentive, the higher profits is the incentive.
If we assume that in today's world large companies are buying materials at virtually the same price (at volume) on the world market then you are only left with (L) + (OH) + (T) to be able to lower to lure manufactures back to the USA.
So to answer your question what needs to happen:
Labor -- Needs to lower their wages, benefits, and perks (both union and non union combined on this one)
Overhead -- Needs to be lowered by the companies (ie lower management salaries, less luxurious buildings, offices, plants, etc etc )
Taxes -- Government needs to get out of the way, shrink its size, and eliminate the overreaching control on NON-GOVERNMENT agencies (EPA, OSHA) Shrink the government and you lower taxes simply since a smaller government does not need as much money to run.
UNFORTUNATELY for us, there is not way any of this will happen since everyone in this country believes that are entitled to something for nothing.
When the USA had -- cheaper labor and lower taxes this country Thrived!! but since the DOT.com boom of the 80's and 90's and the invention of paper millionaires wages and taxes have soared pushing companies to search for cheaper costs -- first it was Canada (we all have seen cars made there), then it was Mexico (thanks NAFTA), then it was Hong Kong and Taiwan (kids toys), then it was India (Call centers), and now its China (everything we buy)
Granted when asked one on one we all say we support USA made projects, but when faced with cash in our pocket versus something we want to buy we all go for foreign made since it is cheaper... Let's face it who is still watching and USA made RCA TV -- NO ONE.
Its just the way of the world, and until the people of the USA are willing to change and demand our politicians make the tough choices of eliminating government services, adding tariffs, and lowering costs here in the USA it will never change....