by William Teach | August 8, 2011 8:55 am
As we watch the world markets plunge due to the US downgrade, and await the opening of the US markets, we await Mr. Obama to finally make some sort of public statement about the downgrade. Something. Anything. Though, some sort of positive motivational speech would be nice. Remember when people whined about President Bush always pushing a positive spin? Works quite a bit better than doom, gloom, and blamestorming. The NY Times is saying that the second coming US (official) recession could be worse than the first. And companies have had enough of the Democrat lengthened recession
La Times: Many major U.S. companies are making big plans to expand overseas even as some of them announce new layoffs at home, and there’s a chilling reason why: They’re beginning to give up on the American consumer as a source of future growth.
Can you blame them? Consumers have pulled back on their purchasing, even while the government expands their own spending. Consumers are concerned about the economy of the USA, and their own personal finances, so they tend to not spend willy nilly. But, is it the consumers at fault, or the insane and anti-capitalistic policies of government?
For years, U.S. companies went off shore to get cheaper labor and lower manufacturing costs for products to be sold to Americans. Now, as the nation’s economy stalls and personal incomes stagnate, they see consumers in Asia and Latin America as offering brighter prospects for future sales and profits.
Obviously, the Liberal answer is that those big meanie companies should be forced to pay their workers more. I challenge these same liberals to pony up and pay their own workers more, even if it is simply giving the babysitter an extra $10 a shift. Not so easy when it’s your own money on the line, is it.
The nation’s tax laws reinforce the pattern. American companies have piled up mountains of profits overseas, but they must pay very high taxes if they bring the money home. So instead of investing back home, they are more apt to put the money into overseas expansion, adding jobs there.
That shifting focus is one reason new job growth here has slowed to a trickle in recent months. And without more jobs to propel incomes and consumer spending, the U.S. economy is looking increasingly vulnerable to a prolonged period of sluggishness, if not outright recession.
It’s a simple equation: stop passing needless and burdensome regulations on the job creators. Eliminate those same that have already been passed. Streamline the tax code, especially for businesses, and reduce the tax rates for companies that bring money (and jobs) back to the USA. Reduce government mandates that businesses must do X. Give companies a reason to do business in the United States. The attempt to install socialistic economic models has shown that they are doomed to fail, as they always do.
Crossed at Pirate’s Cove. Follow me on Twitter @WilliamTeach.
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