18 August 2010

Why are we still offshoring?

At a time of high unemployment in the US, General Motors, newly profitable again and a former recipient of bail-out funds from the US government, is investing $500 million in a factory in a foreign country, which will create 390 jobs (in addition to 11,000 GM jobs which already exist there).

Found via The Oracular Opinion, which has some serious points to make about this once one hacks one's way through the thicket of leftist-bashing. If the government is a majority or at least major shareholder in GM, why is it not using that influence to push GM to consolidate manufacturing capacity and jobs back into the US, or at least making sure that new investment goes here? (Never mind that a lot of right-wing bloggers would find grounds to condemn such "interference" -- it would be the right thing to do.) Is this a case of some lower-level functionary dropping the ball, or did higher-ups in the government know about it?

More to the point, of course, is whether this is an isolated case or a symptom of a broader policy failure. The Bush administration did nothing to discourage US companies from moving jobs overseas, but I would expect a Democratic administration to take a much more active role in pressing companies to keep jobs at home. Are they doing so?

4 Comments:

Blogger Ranch Chimp said...

I dont even see why any of this suprises American's, from the unemployment figure's to the offshore investment's, job's or where bailout money mostly went, even almost the entire bailout for investment banker's went offshore actually. I sure as Hell wrote so much about this two year's ago and more, and it all happened exactly as I called it to the note. This was so clear as day as to where thing's are going even 5 year's ago. Even when we bailed GM, what the mainstream media wasnt talking about, was how profitable GM China was, yet wouldnt spend a dime on their American division. 2006 all kind's of no bid contract's to build railway's into Afghanistan to China even to mine all the copper and other resources were quietly announced even, yet folk's thought we would reduce troop's in Afghanistan, and never questioned why all troop's and funding was from American's, yet China contributed nothing? I could go on, we get what we deserve for being so stupid and supporting what we do, both side's. And we will continue to get the shaft until we speak out, I will bet my paycheck on it.

Thanx Guy ....

18 August, 2010 04:37  
Blogger Ranch Chimp said...

I think I forgot to answer the question of why are we still offshoring? ... Heh, heh, heh, heh, heh ...that's an easy one ... money and demand! :) And alot because of the new China and what will be needed for them, very soon.

18 August, 2010 05:31  
Blogger Infidel753 said...

I don't really think that China has much to do with GM investing in Mexico.....

Sorry for the long delay in posting comments. I barely was able to get at the internet for most of today.

18 August, 2010 19:57  
Blogger Ranch Chimp said...

Thanx for the post link Infidel, I never seen that one. No ... I wasnt refering anything to do with China over GM in Mexico or anywhere's else ... Just something that popped off the top of my head when the subject of GM arose, because at the time of the bailout I didnt think it was fair at all for China to isolate themselves of what I felt were some brotherly investment responsibilities, While we were bailing out, China was sitting back raking in record profit's with their division of the same company. I also am sure as Hell not anti China either, which I may sound ... I just am a tad concerned with our offshore investment's and across the board fair market is all. China is a huge market and alot of investment's want a piece of it.

Thanx Guy ....

18 August, 2010 22:58  

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