Why Are Jobs Leaving Our Country?
This morning the unemployment report came out at 5:30AM California time showing we had gained 400,000+ jobs in the month of May 2010. However, close to 400,000 of them were temporary government jobs that were created by the Census Bureau and were to be terminated in 4-6 weeks. In another words, we did not “dip” to below 10% unemployment. The politicians were only using this temporary situation for a sound bite to make them look better in our eyes.
I would like to share with you my opinion of why we are losing jobs to China and other countries that should be kept here to support our own economy.
Our government and politicians put in place special incentives for corporations to buy new equipment that included having a shorter term of depreciation (to help with taxes) and other short term tricks resulting in immediate non-sustaining results. Who is buying into these quick fixes? Not me, and not other people who can see past the trees.
Let’s analyze this for a moment. Let’s say I buy a press for $300,000.00 and create 3 jobs as a result of this new equipment. In a nutshell, what I am getting is a shorter, accelerated depreciation plus added payroll, workman’s compensation, property and health insurance, and social security/unemployment contributions along with increased operating costs, overhead and additional salesmen to sell and create orders to support the press while facing tough competition with every other manufacturer cutting prices to get the orders. Well, all of this is understandable and is part of doing business. I am used to it, and these situations are all part of operating our business.
However, one thing that no one mentions, and what really gets to me is the unspoken and overlooked expense that every corporation is experiencing, and somehow, our politicians never mention or want to bring it up. It is the annual bill we receive for the Equipment Property Tax. Yes, ladies and gentlemen…..This never goes away. As long as you own that equipment, it just keeps coming every year, just like the property taxes you pay on your homes.
Our big corporation (and now many of the smaller ones also) have looked at this and quietly said to themselves, “If I contract this out to China, I do not have all of these expenses. I get the product for one fixed price, and all I have to do is sell it. I don’t have to worry about all the production costs, quality control, delivery dates, employment expenses, or the property tax on any equipment. I can buy it cheaper at a predetermined, exact price, and all the rest of the expenses disappear.”
If our politicians were smart, they would eliminate the property tax on production equipment and allow the companies to produce locally. Allow us to hire our capable, knowledgeable work force to work and be proud to make good American products that say MADE IN USA.
As long as the mentioned factors listed above are in existence, jobs will be leaving our country and we will be importing more and more. Our trade deficit will grow and grow until China will no longer buy our treasury notes that we sell to finance our economy. We will be owned by China without a shot fired. Our Deficit will be so big that it will never, ever be paid off.
Let’s wake up our politicians and let them know national security is not only keeping the terrorists out, but it is also keeping our jobs in the USA. Take the choke rope off all manufacturers so production can be kept on a local level.
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