Tell me if my logic is illogical.

[Random Variable]

If U.S. corporations (of which Motorola is the worst offender ) moved all of their factories back to the States, the prices of many goods would obviously go up (because of the lack of cheap labor). But wouldn't that drawback be offset by the fact that unemployment in the U.S. would be so low?

 

[jacklutz]

How many people do you think would tolerate higher prices on almost all items so someone they've never met and never heard of has a job?

 

[pulse8]

No because everyone who is employed by other companies will not get a pay increase because Motorola opened up a factory in the US.

 

[Random Variable]

<< No because everyone who is employed by other companies will not get a pay increase because Motorola opened up a factory in the US. >>


Just to clarify, I didn't mean only Motorola.

 

[pulse8]

Well, to clarify, unless everyone else in the country is going to get a pay increase because other companies are moving their factories and such here, then no it won't offset.

 

[vi edit]

If that happened, and they had to raise the prices too keep profits going, people would just buy from another producer putting them back in the same situation they were in before.

 

[Random Variable]

There are always tariffs.

 

[CStroman]

It would greatly reduce shipping, so maybe it would balance out and stay about the same.

 

[jbod]

hmmm...intitially the prices would no doubt rise (if they couldn't absorb the cost) becasue of the lost investment in that other country. The higher prices of the products would have to offset that lost investment, factories, training, inventory storage, etc. On the other hand, if the corporation had enough money they could absorb the cost of the loss. I'm sure that could happen too.

Eventually the higher prices would probably come down after their products sold created revenues that overcame the lost investment. Unless of course they are pricks and like to make even more money. But the buyer would have to have confidence in them actually lowering the prices or they would flop. (But how do, if you are a corporation, tell the public "We are going to rasie the price of X but don't worry, because in two years we will lower them, and by the way 'We are proud to announce that we are made in America.'") I don't think people would buy it. (pun intended)

 

[jshrieve]

Unemployment rate wouldn't change significantly. It'd go back down to 'normal' levels (rather than the somewhat high levels we have now).

But the unemployment rate is actually manipulated through various federal means. The simple fact is that not only is too high unemployment bad, but too low unemployment is bad too. Extremely low unemployment rates cause salaries to start increasing very quickly (less people needing jobs) which results in inflation..

Sorry I can't remember offhand which things they manipulate to keep unemployment in control. It's on the tip of my tongue/brain but I just can't remember. You can probably find it if you do some searches, it's not a secret or anything.

 

[BruinEd03]

prices would rise dramatically...keep in mind that these laborers in other countries get probably $1/hour compared to min wage of around $6.50. Not to mention in other countries you don't need to provide the workers with any benefits whereas here u do.

-Ed

 

[Random Variable]

<< prices would rise dramatically...keep in mind that these laborers in other countries get probably $1/hour compared to min wage of around $6.50. Not to mention in other countries you don't need to provide the workers with any benefits whereas here u do. >>


No wonder most of the world hates us.

 

[kgraeme]

Your logic is illogical.