Thread:

Short Term Gains Over Long Term Growth

http://finance.yahoo.com/news/Indust....html?x=0&.v=2

Companies are showing higher profits due to cost cutting. Shareholders are rewarded but what happens when they can't cut any more costs? Sales will continue to decline and stock value will then plummet. Then what?

Outsource parts manufacturing offshore reducing costs, move assembly plants to 3rd world countries to reduce labor costs. This results in loss of quality and further loss of sales due to no longer "made in America".

When sales revenue can no longer can support the company it files BK or gets sold. What remaining employees left are laid off to join their former co-workers in the unemployment line. They can't get jobs because all the other potential employers have moved their assembly offshore as well.

We can't compete in a global economy when our competition pay their labor $1 a day. I'm afraid the glory days of this country are now behind us. I just wish we could have held out for another 20 years. Then I would be retired, living in the mountains and sitting on my front porch saying, "Remember when this was the best country in the world and everyone could do well with a little work and effort? People were proud to be Americans and everyone wanted to come here and join in. People pulled their own weight and even contributed to the well being of the country without being forced to by the government."

I think we are so focked now that I have no idea what should be done to fix it. I believe that neither does the current administration. The President is several years younger than me and I think of him as a kid without a clue. Kind of like the most popular kid in school that has just been appointed head of the school board. He is very good at slinging the BS and complaining about how his predecessor did everything wrong and how, if given a chance, would show them all how it's done.

I think the sky really is falling! There are a lot of people on here that understand this. I am really interested in what anyone could say that would really make a difference in where we are headed. Not just to get rid of the incumbents (couldn't hurt!) but a real step by step plan?

sad state of affairs .......


We could fix it ..... raising import taxes to promote internal development , Raising the export taxes to keep our durable goods in House --- - Stop whoring and regain control . Promoting industry and encouraging education ( so kids do not spell like myself lol ) Time to focus on The US and ONLY the US till we heal .... No offence to the out side countries .. but your problems are your problems ... We will help you but we ain't going to support you !

We need to work on utilizing our people and our talents and developing our self supporting economy . We have some incredable people and talent in this world . Science , Engineering , medicine , commerce and oceanic development . Reset standards in realistic wages in the private and PUBLIC sectors , If you think about it - What do we really use ( need ) that we can't get in the good ol U. S . A ??

Oil ? got it ( maybe not enough ) food ? I personaly do not need apples from out of country, mine taste better . Timber - Check , metal , Check -- OH wait Cheap labor --ya that's what we can't have - Pesonally it's all relavent in ones own economy -- its just a # .........

Design it here and build it here. With all the free money American folks are sucking up we could be producing instead of purchasing. It's a better plan than the Libs "Blame it On Bush" plan.

Originally Posted by Lucky

sad state of affairs .......


We could fix it ..... raising import taxes to promote internal development , Raising the export taxes to keep our durable goods in House --- - Stop whoring and regain control . Promoting industry and encouraging education ( so kids do not spell like myself lol ) Time to focus on The US and ONLY the US till we heal .... No offence to the out side countries .. but your problems are your problems ... We will help you but we ain't going to support you !

We need to work on utilizing our people and our talents and developing our self supporting economy . We have some incredable people and talent in this world . Science , Engineering , medicine , commerce and oceanic development . Reset standards in realistic wages in the private and PUBLIC sectors , If you think about it - What do we really use ( need ) that we can't get in the good ol U. S . A ??

Oil ? got it ( maybe not enough ) food ? I personaly do not need apples from out of country, mine taste better . Timber - Check , metal , Check -- OH wait Cheap labor --ya that's what we can't have - Pesonally it's all relavent in ones own economy -- its just a # .........

Three Cheers for Lucky... Lucky for President!!!

LUCKY/PALIN 2012

Originally Posted by Uminchu

Charlie, why/when did we move from a manufacturing to a service economy? We send ore to Japan, and buy their steel. Why is that? Those folks are earning more than a buck an hour, plus the shipping costs, and it's still cheaper?

I know with the auto industry, there is serious government meddling. I had a Nissan Skyline in Japan. The windows had "DOT" labels on them, (US standards) dual airbags, cat. converter, etc. etc. All of the cars are manufactured that way, yet none of the cars can be imported into the US. (You can pay about 35K to get that all important sticker on the visor warning you about the airbags, a DEQ sticker, and you may get it imported)

A lot of our goods are made in Taiwan. Taiwan isn't the cheap, backwards place it was when "Taipan" was written. It is expensive, and cosmopolitin, and they are earning more than a buck an hour too.

Our American companies outsourced to save/earn money. Why did they do that, and what could our government do to get them back?

Curious, not picking a fight.

Many reasons but a few things that come immediately to mind involve the costs of overcoming bureaucracy and liability.

The mere costs of disposing of anything toxic adds to just about every process known. The cost of fighting frivolous lawsuits drives insurance costs skyhigh. Buy a battery or a set of tires and look at the disposal fees. Then imagine what it costs a business just to take out the trash with similar added fees. We need to protect the environment, but we can't destroy business with unnecessary fees to do so.

I was in Europe in the mid 90's trying to pickup an exclusive product line and was told by the Pres of the company, they feared the effects of the US legal system making their costs go up.

The O Admin is using the EPA and other agencies to stifle certain industries. He made the statement he would destroy the coal industry and though EPA rulings, he's doing just that with insistance on re-licensing PP's after maintenace shutdowns.

The recent ill-thoughtout moratorium on offshore drilling is already chasing Drillers to other parts of the world. The Dems thrown together new rules to drill, will put small Drillers out of business and is currently being fought in the House by Rep Pete Olsen of Houston.

The forced HC bill will further make it harder to fill low level essential positions. Everything the government does adds up to costs.

Bottom Line: Too damned much Government adding costs to doing business.

Originally Posted by Uminchu

100% agree with you. At the risk of being chided for being the "world traveler" again, that's how it's done in Japan. You get the money from the Gov, you gotta prove you are looking for a job. If you aren't, you loose the money, or you can help the other people working alongside the roadways weeding and picking up trash. Japan is running out of money, so the non-employed are starting to live in the city parks.

I'm nothing special, but I have never had a difficult time getting a job. I don't have a problem taking care of our mentally ill, or our disabled, but there are healthy men and women taking our hard-earned money, and what's worse is that the current administration thinks they deserve it.

Fixed it for you...

Originally Posted by Uminchu

Charlie, why/when did we move from a manufacturing to a service economy? We send ore to Japan, and buy their steel. Why is that? Those folks are earning more than a buck an hour, plus the shipping costs, and it's still cheaper?

I know with the auto industry, there is serious government meddling. I had a Nissan Skyline in Japan. The windows had "DOT" labels on them, (US standards) dual airbags, cat. converter, etc. etc. All of the cars are manufactured that way, yet none of the cars can be imported into the US. (You can pay about 35K to get that all important sticker on the visor warning you about the airbags, a DEQ sticker, and you may get it imported)

A lot of our goods are made in Taiwan. Taiwan isn't the cheap, backwards place it was when "Taipan" was written. It is expensive, and cosmopolitin, and they are earning more than a buck an hour too.

Our American companies outsourced to save/earn money. Why did they do that, and what could our government do to get them back?

Curious, not picking a fight.

Originally Posted by Old Texan

Many reasons but a few things that come immediately to mind involve the costs of overcoming bureaucracy and liability.
Bottom Line: Too damned much Government adding costs to doing business.

Let's not forget our beloved unions. Where would we be in the grand scheme of global competition without them?

Originally Posted by Boss460

Speaking of unions...

Time had an article last week that included a snippet about supermarket cashiers making minimum wage.

There was a letter to the editor this week that said the following:

"What supermarket is Sandler shopping at? I am a supermarket cashier and union member. We do not earn minimum wage. We earn a little better than $20 an hour."

WTF??? Where do I get in line to scan barcodes all day for $20 an hour??

Actually I think cashiers should make good money in order that I get one having the sense to ring things up in an orderly manner and deal with the small situations that can stall a line for long periods of time when you have an idiot ringing things up.

Efficiency and intelligence bring in business and send happy cutomers on their way. Big difference in a Walmart cashier and a Kroger's cashier.....You get what you pay for.