We are all excited about Trump’s bringing factories back to America! My question is, Can it work?
In China, the average Shanghai factory worker gets $370 U.S. dollars per month in Shanghai, which are the highest rates in China. In other areas it is lower.
In America, an average U.S. factory worker, makes $48,945 a year, before taxes, Social Security, etc.
In China, the yearly wage is $4,400 U.S., and I have no idea of or if there are deductions. The Chinese Yuan is now at about 17 cents US.
I have tried to figure in costs of shipping from China to the U.S., but it is totally dependent on weight, and even tariffs. I think about 11% might be fair.
How can a overseas company or corporation bring its manufacturing back to America, and pay employees $48,945 a year, when worker making the same stuff in China make one tenth of American wages?
Next, we must figure what labor cost is to produce what a factory produces, and it is from 25% to 38%, depending on what is being manufactured.
No matter how you figure it, anything produced in America VS China, is going to cost a lot more to buy here for the same items.
How can a returning manufacturer ever compete with China? And if the manufacturer had to build a whole new plant, at hundreds of dollars per square foot, is it even remotely possible to compete, without it costing consumers more than they are now paying for anything made in China?
HOW CAN A MANUFACTURER RETURN HERE, WITHOUT INCREASING INFLATION?
What about factory property taxes, insurance, employee accident insurance, Utility costs, factory maintenance, machinery repairs and even landscaping? All add up to costs of making things in America.
As much as I admire Donald Trump, voted for him, and sent him money, and how much would love to see manufacturing come back to America, how can it happen? Even with existing factories, since most have been destroyed, or burned down, as I have seen many times in Philadelphia? A Ram plant, has recently had its manufacture sent to Mexico, costing U.S. workers over a thousand jobs, and I assume that building is still there, but what would it cost to move machinery back to the U.S. and re-hire workers?
I am sure, everyone knows that Trump lies and exaggerates constantly. Why hasn’t he proved that what he says, as far as billions being spent in new factories, been publicized, rather than just giving huge, pie in the sky pronouncements? Why haven’t new factory foundations been poured and shown to everyone?
As I wrote two columns ago, Argentina has slashed government waste by huge amounts, and brought down inflation enormously, without using a single tariff. Isn’t that what Trump and Musk have been doing? Where are tariffs necessary if government waste can be removed, without angering the rest of the world with tariffs?
Is Trump destroying mid-term election success by endless un-proven braggadocios, and endless executive orders, which are often so general, that details in their happenings are often disastrous? Executive Orders are not found in our Constitution. Damn! I hate writing things like this, but I am a truly logical person, and I find logistics missing all too often in orders and speeches from the White House. PLEASE SOMEONE, PROVE ME WRONG. I WANT YOU TO. My e-mail is don@coloradogold.com.