1) Republicanomics that set the current tax laws, where its much cheaper both bottom line wise and tax wise to offshore.
2) Unions. Simple.
3) The average American worker these days is uneducated and lazy, and American CEOs know it.
In a discussion board where broad, sweeping generalisations are the norm and fact is often casualty to opinion, hear-say, uninformed protectionist sentiment or a peculiar sublimation of a/c orders into patriotism or nationalism, I find the above statement to be one of the worst ones that I've come across in the 4+ years that I have participated in a.net. I would have expected something like this to be posted in another current thread " Shocker-Airbus in talks with US carriers for A380"
, where some of the most puerile and inane of the Boeing-Airbus flag-wavers
are competing to be the most insulting and ignorant asshole on a.net.
I will agree with you on point 1, Republicanomics
(interesting term) is probably the most debilitating thing to happen to America in the last quarter of the 20th century and continues to this day. The notion that you can cut taxes (reduce income), increase spending and participate in feel-good wars and expiditions is sheer madness. It is indebting the country, marginalizing our competitiveness and reducing our influence.
2. Unions. I don't understand this point. Union membership is roughly 10-15 percent of American businesses and limited mainly to primary manufacture. How does this influence business decisions by corporations or individuals? It has not stopped foreign automakers from setting up shop here despite the fact they will more likely than not have to deal with what is arguably the most reaction union, the UAW. Branson and his investors have to know that most US airlines unionize too. Incidently, I am not a union member although I belonged to the USW for 7 years long ago. If you've ever worked in primary manufacture, you would understand that unions have their place.
3. American workers are lazy and uneducated-and American CEO's know it.
Really? Which ones? Ebbers? Skilling? Carty? Condit? Waksal? Perhaps if they weren't so involved in illegal and/or unethical practices, they would have more time to develop their workforces. Do you consider your statement all-inclusive? If so, you must either have a self-esteem problem or are wealthy enough not to work. In my job I often have the opportunity to see the information on the productivity numbers of my employers US, European and Latin American operations. In virtually all measurable categories, the US operation is first,
output, unit-cost, hours available/worked. By these metrics, these are hardly "lazy" people.
While I would hardly suggest that the other operations are inferior in any way, the numbers are the numbers. Uneducated? Perhaps factory workers have a tendency to be high-school graduates and not move on with their education, but I hardly think that is why US businesses move or expand off-shore. Ever been to a "maquiladora" plant on the Tex-Mex border? I have. I think the wages of < $1 an hour have more to do with it. I won't even comment on the education level. Let's just say there is very little university amongst the working folk.
More to the topic. I have a hard time with the notion expressed that another LCC is great for the economy. I really have no idea how much American content is in any Airbus, so whether the value of the combined US input is great enough to offset the unit cost of the completed ship (and its impact on the current-account balance sheet) when it comes here is unknown. I suspect the the overall balance is in favor of the Europeans, but I don't know.
Virgin USA will create some jobs, sure. It is part owned by US investors, sure. Makes low-cost travel available, sure. Does it generate value-added assets to the economy to earn foreign exchange? No. Does it add to the asset-base of the US, no. Does it provide any value-added services which could benefit the economy? No.
On the whole, it represents just another service. Some good undoubtedly comes from it, but it is hardly the panacea some would suggest. Put another way, I would far rather see Airbus open a plant here to build tankers or make A320's than to see another LCC open their doors. A true manufacturing plant is everything to the economy that a service organization is not.