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Posted by David Kelly on July 12, 2008, 10:10 pm
Please log in for more thread options Doug wrote:
> I'm a little concerned about the industrial and technical skill level
> of the local workforce in MS. I hope the quality does not suffer
> because Toyota wants to build in the US. Choosing a low-wage,
> unorganized workforce to build a sophisticated hybrid means there
> could be quality problems in the future.
Spoken like a true union man. But the thing that is driving industry out
of Michigan and elsewhere is the simple fact there is skilled labor in
the south that is hungry for good work. Hungrier and more willing to
work than organized union labor. That Toyota will pay about twice what
Mississippians can get elsewhere, and still pay about 1/3rd what it
would cost in CA or the union north.
Not all of the cost is wages. Taxes are recursive, contrary to the
opinion of the left government can not "soak the rich" without raising
everyone's taxes. The higher the tax rate the more profit one must
expect out of a venture to make it worthwhile.
Businesses pay taxes but businesses are not taxed. All business taxes
are operating expenses which are passed down the chain. All business
taxes increase the cost of product by the amount of the tax plus a
handling fee.
The higher the property taxes the more everyone must make to maintain
the same standard of living. The clerk at 7-11 has to be paid more in
order to pay the higher rent his/her landlord has to charge for higher
property taxes and income taxes. Which inflates the cost of the merchandise.
To my knowledge there has been only one failure of a foreign car
manufacturer moving to the USA. Was Volkswagen into a union shop,
Pennsylvania, starting with the 1985 model year. I owned a PA-built 1986
VW Golf. Its body didn't have a straight seam. The bottom front edge of
the rear doors stuck out and caught rocks, were always chipped. The rear
hatch gap at the top right was big enough to stick my thumb up to the
first joint. Left side would barely let the tip of my thumb in. To the
engineers' credit it didn't leak.
The Jetta of the same year was manufactured in Germany. Significantly
better workmanship. Also cost 10% more than a Golf.
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