Deere to *CLOSE* Welland, Ontario, factory and transfer production ...

[unreconstructed]

Capital furnished by the taxpayer in form of tax advantages or whatever is just another form of facism where the state and private interprise are in bed together. When a city government ( or state or federal) gives tax rebates for years, sells land at a discount it has taken from someone through eminent domain, etc etc, the existing businesses continue to be taxed and goes on with business as usual--I believe that is income distribution in another form. Nevertheless, when a government entices business by getting other businesses to pay for some of the capital of the new enterprise, well, I guess that's certainly a big drawing card. Plus is cuts down on interest costs and looks good to shareholder quicker returns on investment. Seems like the chickens have to come home to roost at some point on these deals.

I don't know the answer.

 

[redneckford]

yep!! the truth starts to hurt when the shoe gets on the other foot(wrong foot) but it is what it is----either they all stop are it just gets worse!!! Remember those with the "most" Gold makes the rules until someone else gets more gold!!!!!

 

[number two]

Excellant discussion gentlemen-thank you!

 

[jdl]

Where's RobertinNY, he loves a good discussion.

 

[Luremaker]

Im kinda sick of this misconception that Canada is such an expensive place to do business and the US is so much cheaper. Is it more than Mexico and China, yes, but we treat our workers a little better than they do there and our quality is second to none.

Here's a study that confirms that overall Canada is 9% cheaper to do business in than the US, and is actually the cheapest of the G7 countries! The study is from 2004 but states that the advantage would remain if the Canadian dollar was over 90 cents. KPMG in Canada | Canada Ranks First as Least Costly Place to do Business

And here's a study from 2008 where Canada still ranks 2nd of the G7 with a 0.6% cost advantage over the US. The stronger dollar has hurt some but the advantage is still there overall. http://www.camagazine.com/index.cfm/ci_id/44214/la_id/1.htm

If it is really cheaper to do business in Canada why do the big USA chain stores like Costco, Home Depot, Staples, Walmart charge 20% to 50% more for most items I am wanting to purchase?

 

[CinderSchnauzer]

If it is really cheaper to do business in Canada why do the big USA chain stores like Costco, Home Depot, Staples, Walmart charge 20% to 50% more for most items I am wanting to purchase?

Because they can get away with it. Same reason an Oshawa built Siverado / Sierra costs $10K less in the US and a Corvette ZR1 $25K less. Same reason big oil can sell Canadian gas to US cheaper. Same reason gas went up 12 - 17 cents per litre at 12:01 am Friday all across Canada in anticipation of Ike who had not yet reached landfall.

Because they can get away with it and spineless Canadian politicians sit back and do nothing.

Ask your question is a different manner. If it's so cheap to manufacture in Mexico - why don't all the US car makers move production there? Because they can't get away with it - not all of a sudden, but slowly the US Canadian manufacturing sector is disappearing, as did textiles and electronics. When USA / Canada have nothing left to offer OPEC / China / India / Japan except worthless dollars to pay for their imports, the current NA way of life will also disappear.

 

[Scooby074]

If it is really cheaper to do business in Canada why do the big USA chain stores like Costco, Home Depot, Staples, Walmart charge 20% to 50% more for most items I am wanting to purchase?

Because they can. CinderSchnauzer makes some excellent points. Couldn't have said it better myself. I don't even want to get started on the whole gas price / hurricane thing.

 

[zzvyb6]

Gimme a break, why should anyone be surprized by manufacturers like John Deere, GM etc. going out of the US and out of business. Just look at all the inventory of the writers complaining. Now guess who has all the money. Its no lomger in US banks, its in Japanese and Chinese banks. That's why there's no mortgage money, failing banks and our markets filled will subsidized foreign made and owned products. Sure they have plants here, but their workers are young, fit and need no health care. GM spends 4 billion on healthe care. Toyota has no recorded retirees yet.

You all complain and P&M as if its John Deere's selfishness. You'd complain too if your savings account only drew 0.5% interest. Stockholders want more. They rule the roost. When you buy your big ticket items supplied by foreign based companies, you give them the investment advantage.

The only solutions are tariffs and or nationalization.

 

[redneckford]

Gimme a break, why should anyone be surprized by manufacturers like John Deere, GM etc. going out of the US and out of business. Just look at all the inventory of the writers complaining. Now guess who has all the money. Its no lomger in US banks, its in Japanese and Chinese banks. That's why there's no mortgage money, failing banks and our markets filled will subsidized foreign made and owned products. Sure they have plants here, but their workers are young, fit and need no health care. GM spends 4 billion on healthe care. Toyota has no recorded retirees yet.

You all complain and P&M as if its John Deere's selfishness. You'd complain too if your savings account only drew 0.5% interest. Stockholders want more. They rule the roost. When you buy your big ticket items supplied by foreign based companies, you give them the investment advantage.

The only solutions are tariffs and or nationalization.

Just "FAIR" Trade What ever it takes!!!!!

 

[mjncad]

The only solutions are tariffs and or nationalization.

Ditto Redneckford's comment, and less Gummint intrusion that hinders businesses from operating in North America.