Monday, October 24, 2011

General Electric comes to bat

Many opinion makers and others have been talking about the lack of jobs in this country. I believe everybody knows by now that there is a significant shortage of jobs. We do not need to be told that jobs are an issue, we know that. What is in question is how to fix or reverse a trend in motion. The answer lies with the Regan Administration tactics against foreign motorcycle companies flooding the US with their motorcycles. In the early 80’s the Harley-Davidson Motorcycle Company was on a path of bankruptcy. Executives and former owners of the company got together to buy the company back from AMF. The problem was several. The company had quality control problems mounting and the floodgate was open for foreign motorcycles. Retooling of the company as far as making a better product was conclusive with the managers as possible. This would take large amounts of cash and backing by investment houses. Both achievable. What the executives needed was support from the US Government. The support they requested and received was as follows. Foreign Motorcycle companies were flooding the market with alarming numbers just to bring their [product to the masses and it was working. They made no money on the motorcycles them selves but on accessories and parts. The motive worked and was putting the only American made motorcycle out of business in short order. They devised a business plan with the help of the Reagan Administration to levy heavy import tariffs against foreign motorcycle manufactures. Sense these manufactures were willing to sell their product for less than retail value the government levied these taxes to make up the difference. This put their motorcycle prices in line with Harley Davidson. This saved an American icon. The details are many but the system worked.

Today we as US workers are faced with the same problem. Manufacturing has all but ceased in this country. The problem is US companies and foreign companies have their products made mostly in China. The products cost the same or a bit less when these same products were produced in the US. The solution to manufacturing job loss lies with the workable Reagan Administration tax levy to bring the importation of products in line with US made products (if you can find any). I personally would like it to start with General Electrics Solar Energy manufacturing unit. GE came up to bat for the US worker recently by building these wafers in the US. They could have easily and more profitably made them overseas, they decided against it. If the US government were truly supportive of the US worker it would levy heavy taxes against any and all imported products to the US. To encourage a new view for US manufacturing. The details would be many. This would cost some to the US population but would bring back manufacturing back to this country and put people back to work. Foreign countries pay their employees 10 cents on the dollar for their workers. Levy heavy import taxes to bring pay rates inline with US workers. If this foreign government raises worker pay, lower import taxes inline with pay hikes. You achieve two fold: manufacturing back to the US, Humanitarian support of grossly under paid workers in foreign countries.                                                             Creative Commons Copyright by
Dess Dermondy

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