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Originally Posted by Cat_Driver  I just have to shake my head every time I hear about another American company going down the drain. |
As long as we are clear on a couple of things...
One being that the company that makes the hummer(AM General) isn't going down the drain... the company that markets it and sells it(General Motors) is.
And two, most of those companies that you listed are not going down the drain. They are doing well as companies.
As soon as cheap shipping via large boats became possible, the geographic location with the cheapest labor gets the manufacturing business. Pretty simple, really. Until the U.S. labor market comes down in price or the current cheap places come up in price there is no labor incentive for a business to manufacture things here in large quantities.
Not only do we have to compete for jobs with the rest of the countries in the world, we now have to compete with the other 49 states, the next county over and even the next town over. We could whine and complain about jobs moving anywhere if we wanted to. It is just a big of an impact to a town for a factory to close up and move across the state as it is for them to move to Mexico. The people in the town are still unemployed. It doesn't matter to them if the factory is 500 or 5000 miles away. It is still gone!