Quote:
Originally Posted by Freiwillige
But the question poses itself as to why it is cheaper to move overseas in the first place? Answer, Government laws and regulations. Why would our government tax heavily any US based manufacturing but give tax breaks to those who shift opperations overseas? Foreighn interests and lobby in washington!
|
Not really.
It's a lot cheaper to live in China than it is the US. Standards and costs of living are higher in the US. Therefore workers in the US will demand higher wages for the same work than a worker in China. It's a no-brainer for a corporation to lower it's cost base. It's the reason my job is being outsourced in the next few months.
Tax breaks to businesses play a role, but it's rather small when compared with the vast gap in wage rates.
I mean, you don't see many US manfacturing jobs being outsourced to France or Sweden, do you?