Just this past week, a guy who is local to me , told a story about the automotive trim industry. He assisted in moving a plant from my area that made interiors. The people working there were not getting rich at just under $10 an hr. on a base pay, but many were making incentive for another 35% increase. So with that in mind, they were good workers, right here in the USA. This guy tells me how they took the jobs to Mexico and were paying the employees .90 an hour. Rejection was high, waste was high but at only .90 an hour. But,they still were very well off from the manufacturing stand point. Of course, the USA people who lost their job and had been employed, are no longer able to buy the cars, the interiors they were making were installed in. How many cars, do you suppose an employee making .90 an hour buys? So now past employees and new employees can neither buy the product. Did the car come down in price, because of lower labor costs? NO. Where did the money go? Duh The guy was kind proud of his role in relocating this plant to Mexico and he blamed the USA cost of labor for their job loss. Guess what though, he lost his job too!!! MORE DUH! Think of all the satellite jobs lost. Think of the real estate market. Retail sales. Tax loss. Where does all this money come from, for the 700 billion buy out and future stimulus checks? On TV I watched an oil CEO tell of his 10 million a year salary. Do I deny him a good wage? When is that wage exessive? For that matter, why I am watching a pro athlete make huge millions a year. I don't watch.
