[MOD CUT]
Quote:
Originally Posted by Marv101
The multinational corporations who have billions of dollars parked overseas won't bring that $$$ to the US to hire more workers until our tax code is changed, and Democrats are explicitly opposed to that, starting with the Micromanager-In-Chief in the White House.
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Quote:
Originally Posted by MarvinStrong313
They know American people need work but they can get cheaper labor paying slaves... oops I mean workers in China 0.99 cents an hour.
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Quote:
Originally Posted by MarvinStrong313
Let's just put it like this, there is money to be made in China from big business....
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You just contradicted yourself.
There's a very good reason corporations are parked on mountains of cash.
I've explained the reason more than a dozen times on different threads.
I'll explain the reason one more time:
Cash is the only way a corporation can block a corporate raider, hostile take-over, leveraged-buyout or forced merger.
I've cited numerous real-life examples:
1] Durant/General Motors -- Every working stiff's dream. General Motors fires Durant, who then teams up with Louis Chevrolet. They start designing, building and selling Chevrolet autos. They are successful. More successful than General Motors. Durant takes his profits, buys up all the GM stock he can and eventually Durant owns 51% of all outstanding GM stock. As majority share-holder, it is Durant's right to call a vote and to name himself CEO and then to cast 51% of the vote for his own nomination as CEO --- and so Durant becomes CEO of General Motors.
2] K R Kravitz vs. Kroger's -- KRK tries an hostile take-over. Kroger's has traditionally since its incorporation maintained 1/3 of all assets in cash. Kroger's takes this cash it is sitting on and pays down its debt, then restructures its loans. Investors see Kroger's as being more profitable and start buying up Kroger stock driving the price up. Kroger's then starts buying back its own stock with cash to drive the price up higher.
Kravitz's bid to take over Kroger's fails.
3] Korean LG Corporation vs Zenith Corporation. Zenith stupidly has no cash, and worse than that, Zenith cannot get cash because Zenith cannot compete in the Global Market
because Americans make way too much money. Because American workers are paid too much, Zenith can only sell to Americans and Canadians, but LG Corporation can sell to the other 6 Billion people on Earth -- LG is making profits, Zenith is making very little. LG Corporation takes its cash from its profits and starts buying Zenith stocks and by 1994, LG had acquired 51% -- making Korean LG the majority shareholder and 4 years later, LG owned 100% of Zenith.
The next time you're at McDonald's or Wal-Mart, why don't you ask the former Zenith employees now working there how the like making minimum wage. And ask them if they could do it all over, would they kick the union leaders in the teeth and take $7/hour wage cut, instead of a $20/hour wage cut.
So, who
still does not understand why US corporations are sitting on piles of cash?
These are volatile economic times both domestically and globally. What do you think would happen if Chinese automaker Dong Feng started buying up General Motors stock?
GM doesn't have a lot of cash. In short order, Dong Feng could buy up GM stocks until they control 51% and then Ford will be the only American automaker left.
You Liberals probably get a woody just thinking about all the GM employees going on welfare.
And this...
Quote:
Originally Posted by MarvinStrong313
They know American people need work but they can get cheaper labor paying slaves... oops I mean workers in China 0.99 cents an hour.
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...just reeks of stupidity.
Fat Union Fred sucks down $30/hour running his MAZAK grinding machine grinding 8 parts an hour. Meanwhile, in China Hi Chin gets paid $1.45/hour to run his MAZAK grinding machine grinding 8 parts an hour, and in Vietnam Long Wang gets paid $1.35/hour to run his MAZAK grinding machine grinding 8 parts an hour.
Which one is more productive?
Can anyone answer that?
And what will you do when Center Mass shifts to Central Asia where Ilkin the Turco-Mongol is making $1.45/hour running his MAZAK grinding machine making 8 parts an hour?
Eventually Center Mass will shift to sub-Saharan Africa where Mbutu will be making $1.35/hour running his MAZAK grinding machine grinding 8 parts an hour.
How do you think people living in the Balkans can afford to buy products made by over-paid Americans?
Well, they cannot afford to buy them --- that's why P&G opened up three facilities in Romania to manufacture and distribute P&G products in the Balkans and Eastern Europe --- because Romanians and others making $2.50/hour cannot afford to buy P&G products made in the US by Americans who's starting pay is $22.50/hour (and yes that is the starting pay).
If GE doesn't open a plant in Mexico to make alarm clocks, then Japanese Casio Corporation will, and Casio will be able to sell to the whole world, while GE cannot, and then Casio ends up buying GE.
Your understanding of economic realities like wage rates, cost-of-living and such is on a par with a very large rat.
$2.50/hour might seem like slave wages to you, but to Romanians making that, and Filipinos making $1.60, and Poles making $4.30/hour those are premium high-paying wages. A typical Russian makes $4/hour to $7/hour.
Just because you can't live on $1.70/hour doesn't mean the rest of the world can't and if you don't understand that, then you're really out of touch with reality.
So go ahead and "bring the jobs home" and they'll be gone permanently in no time.
Reasoning...
Mircea
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