Today's rich people are the ones who helped create the economy of low pay and welfare through outsourcing and in sourcing (illegals)
Most of the shit rich people do is the result of things stupid people vote for. California is a great example of this. People keep voting for more red tape in California. How do rich people respond? They outsource. Not to other countries, but to other states and other cities. The main office of a company was in Sacramento? Now it's in Dallas. Cars were made in Michigan? Now they're made in Ohio or Wisconsin.
You need to ask
why businesses decided to move factories elsewhere. Back in the 60s or 70s, Americans were some of the highest paid people in the world, but our goods were the cheapest. People with money would brag that someone was imported because imports were more expensive. It was more cost effective to build things in America, and we made great products. What changed had nothing to do with wages and everything to do with red tape and regulations. Think about how something like an iphone is made. 99% of it is robots, and that last 1% is done by humans. How long is the iphone in that human's hand? 1 minute? Less? You could pay that human $100/h and it would still have very little impact on the final cost of that phone. With that in mind, why would a company move a 100 million dollar factory to the other side of the world? It's not to get away from wages. It's to get away from regulations and red tape.
Most Americans have no idea how much red tape is involved in everything a company does. Companies have full time employees, sometimes several of them, who do nothing but regulation compliance. This isn't stuff like preventing toxic waste dumping in the river. This is dumb shit like how high the curb is, what slope is the wheelchair ramp, how high is someone's desk, does the store's sign offend certain people, does the office have the correct ratio of men and women, are employees given proper sensitivity training. You need to be borderline crazy to build a factory in America. Your factory could be shut down if the government thinks the light reflecting off the roof is affecting bird migration or something equally stupid. Things just keep getting worse because our government gets more and more retarded. Look at the GM bankruptcy as an example of this. Obama and his friends tried to score political points by favoring the union and screwing the bond holders. What did Obama just tell the world? Do not lend money to American companies. In other countries, bond holders come first, so bonds have lower interest rates because they are backed by the company assets. In America, it's not entirely clear if the bond holders have claim on company assets, so the bond rates for US companies will increase. This makes it even harder to operate in America. A company located in Canada might be able to borrow at 3% interest. That same company in America might need to pay 4% interest because the loan is not secured, and bond holders will get screwed if the company goes bankrupt.
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