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Forums - Politics - Ford Cancels Plans To Move US Factory To Mexico Due To Trump ... (Hint: China)

WolfpackN64 said:
Superman4 said:

States and or governments should not be able to "seize" anything. Companies are around to make money, if it’s cheaper to go to China or Mexico than it is well within their right to do so. It is the failed policies of the administration which allows it to be cheaper to import goods. Any and all imports should be taxed according to current US wages to now include medical costs since the Democrats want "free healthcare" to be mandatory for everyone. So essentially take the cost of a vehicle made in the US based on labor and materials per car/good and apply a tax accordingly per item imported based on that amount regardless of where it comes from. For companies with no US presence take the average of all imports from domestically owned companies and apply that tax to any 3rd party imports. 

 

Bottom line is the government needs to fix the laws in order to make it profitable to operate in the US. Mandating healthcare and other social programs will only force more companies to move overseas or across a border to another country that is cheaper. The last thing I want or anyone needs is the government being able to seize assets because they don’t like what you are doing. It’s bad enough police seem to think its ok to seize assets of people committing a crime and re-use those seized items for personal gain.

It's already proven that universal healthcare will lower costs compared to Medicate, the AHCA and the ACA due to it being a simpler and more effective system. I don't condone just seizing everything if you're concerned, only in the when large companies have clearly violated an agreement with the state or broke tax evasion laws when moving out. I'm certainly against seizing assets from citizens except maybe under very specific circumstances (which I can't even think of now). And of course, implementing correct import taxes can help. Competition can be good, so these don't need to be too heavy, but they need to be heavy enough to level the playing field somewhat.

I wouldn’t say it’s proven. If it is such a good plan, why are premiums higher now than they were 2 years ago? Why do most people have less coverage but pay more now than they did 2 years ago? What I find interesting is that in an age of science and math, the politicians still seem to only look at the numbers they like and fail to see the entire equation. I will explain my position below.

 

In theory having everyone pay into a system will generate more income into each plan which would allow for more coverage for everyone. What it fails to take into consideration however is how many people do not have coverage because they can’t afford it, are not required to pay anything based on income or how much medical care actually costs. This needs to include an increase in front office staff, insurance adjusters etc. to allow for an increase in signups for people who didn’t have coverage before but are now required to sign up and an increase in patients due to people taking advantage of the coverage they have now been forced to have. For the people who are not required to pay, the money from everyone else is now paying for their coverage.

So on a positive side it should in theory create jobs in the medical field and insurance field. What it doesn’t stop however, are the insurance providers increasing rates, participating in exchanges in all states or providing affordable plans with adequate coverage. What you end up with is what is happening now, insurance companies are leaving entire states because they don’t want to participate in the exchange, rates are going up because people are forced to purchase insurance and coverage’s are going down because the insurance companies know they will get paid regardless of coverage. 

What needs to happen if we really want "universal healthcare" is an end to the insurance model. You create one government agency to manage hospital claims with an independent oversight committee. You add a 2% tax on all income for every person and company with no tax loopholes or write offs allowed to reduce that amount, 2% on all income before taxes. This will offset the individual’s income tax liability much like a 401K. You would still pay a little more overall in tax however you would not need to deal with an insurance agency, any and all medical issues would be covered with no exclusions and everyone would be covered. Laws would need to be in place to prevent the government from denying claims for procedures required like cancer treatments, aids medication etc. Any plastic surgery would be paid for by the individual and not covered by the universal healthcare unless it was medically required due to an accident or life threatening situation.

 

Making something mandatory and still allowing 3rd party companies to control it is asking for abuse. Car insurance is no different right now in California. You are required to have it yet they are not required to pay out regardless of how much you pay in. You could have paid in 200K for the life of your plan and they can still deny payment based on your level of coverage. Where did that 200K go?



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pokoko said:
Aeolus451 said:

That's false. If that was case then they would be making even more money since the keep charging more for the same services. Costs keep rising due to a multitude of things like unions, employee benefits, prices of materials, new taxes/fees, inflation,  etc. It's a fact.  For example, those $15/hr minium wage knuckleheads don't realize they'll lose a lot of jobs if that's implemented because it would increase the cost for businesses by a considerable amount. Mcdonalds would just become automated and everyone would suffer in some sense because of that. I can't imagine what their sandwhiches would taste like if that happened. haha. People need to learn how to be more pragmatic. 

Competition between countries for business. That's never gonna stop and it's a good thing in general. 

I already gave a solution. Just reduce costs for businesses to operate and have employees. It will solve itself. 

Sure it will.  We just have to degenerate our standard of living to match the lowest in the world.  That will certainly solve things.  Of course, that will result in other countries lowering their standards in order to attract businesses, too, so we'd have to downgrade again.  Maybe end up in situations where we are not only getting rid of corporate taxes but are actually paying corporations to stay.

Yeah, in the real world, that's not really an option.  Trump is well aware that doing so isn't nearly enough which is why he has talked about tariffs so often.

It's a capitalist market.  That means countries should leverage their buying power and operate just like multi-national corporations, not just sit and beg for jobs or wait to get used and thrown away.  If a shopping mall can charge companies for doing business in their market-place then a country can do the same.  

You incentivise staying but you also decentivise moving.  That's the only thing that's going to actually work.

To the bolded part. No, it wouldn't. We would just have to roll back some the more extreme crap that unions had implemented to reduce costs low enough for it to benefit companies well enough. Maybe reduce some benefits or fees that companies pay. You're exaggerating a good deal on the consequences. Unions dramatically increase the costs. They're nice in that they help out workers when they're hurt or getting screwed over but they've gotten way overboard in asking for too much pay, making it difficult to fire bad employees, tying it up with red tape.  

I agree that it would take a mixture of positive and negative incentives for companies to bring alot of jobs to the states.



Cobretti2 said:
Superman4 said:

Cars wont be cheaper, they will not pass on any savings to the consumer. I dont care how much you pay the union employees at a factory, it does not cost 60K+ to build a Cadillac or a Tahoe, they are the same chassis with different cosmetics. They want bigger bonuses and higher corporate wages.

Entry level job pays $32 an hour here at Ford. Most would be closer to $45-50 an hour with 5+ years exp.

This is where the unions are hurting american jobs. Why would a company stay in the US if they are forced to hire Union employees at inflated rates?  They can move overseas, not pay medical benefits, high wages or retirement and rake in the savings. They still wont pass that savings onto the consumer.



JRPGfan said:
Teeqoz said:
Lol, pretty soon, manufacturing jobs won't exist in any country (except for some very few). And I for one welcome our new robot overlords.

What do you think is more likely...

A) future where wealth is redistributed, so that these machines that do the work, means everyone on the planet gets all they need.

B) future where a few companys own all the wealth, machines do all work, but they have almost no one to sell their stuff too. Money losses value, and we revert back to trade X for Y ect (where only companys can really trade one another). The humans that arnt part of that elite group, will have to learn to live off of the land/sea.

You literally answered the question in your alternatives. With alternative B), everyone loses, including the richest. Producing stuff doesn't mean anything when 99.99% of the population isn't inside the market. Even the richest are better served with everyone affording to buy the goods that are being produced, so a future where wealth is redistributed, perhaps by UBI (Universal Basic Income) is inevitable.



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outlawauron said:
vivster said:

The fun part is, Americans wouldn't even get the jobs if it was built in the US^^

Uh, this just isn't true at all.

Of course it is. All the jobs would go to illegal immigrants. Or do you think someone who would outsource an entire factory wouldn't take advantage of a much cheaper work force within the US? That's why they're building the wall, right?



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Superman4 said:
WolfpackN64 said:

It's already proven that universal healthcare will lower costs compared to Medicate, the AHCA and the ACA due to it being a simpler and more effective system. I don't condone just seizing everything if you're concerned, only in the when large companies have clearly violated an agreement with the state or broke tax evasion laws when moving out. I'm certainly against seizing assets from citizens except maybe under very specific circumstances (which I can't even think of now). And of course, implementing correct import taxes can help. Competition can be good, so these don't need to be too heavy, but they need to be heavy enough to level the playing field somewhat.

I wouldn’t say it’s proven. If it is such a good plan, why are premiums higher now than they were 2 years ago? Why do most people have less coverage but pay more now than they did 2 years ago? What I find interesting is that in an age of science and math, the politicians still seem to only look at the numbers they like and fail to see the entire equation. I will explain my position below.

 

In theory having everyone pay into a system will generate more income into each plan which would allow for more coverage for everyone. What it fails to take into consideration however is how many people do not have coverage because they can’t afford it, are not required to pay anything based on income or how much medical care actually costs. This needs to include an increase in front office staff, insurance adjusters etc. to allow for an increase in signups for people who didn’t have coverage before but are now required to sign up and an increase in patients due to people taking advantage of the coverage they have now been forced to have. For the people who are not required to pay, the money from everyone else is now paying for their coverage.

So on a positive side it should in theory create jobs in the medical field and insurance field. What it doesn’t stop however, are the insurance providers increasing rates, participating in exchanges in all states or providing affordable plans with adequate coverage. What you end up with is what is happening now, insurance companies are leaving entire states because they don’t want to participate in the exchange, rates are going up because people are forced to purchase insurance and coverage’s are going down because the insurance companies know they will get paid regardless of coverage. 

What needs to happen if we really want "universal healthcare" is an end to the insurance model. You create one government agency to manage hospital claims with an independent oversight committee. You add a 2% tax on all income for every person and company with no tax loopholes or write offs allowed to reduce that amount, 2% on all income before taxes. This will offset the individual’s income tax liability much like a 401K. You would still pay a little more overall in tax however you would not need to deal with an insurance agency, any and all medical issues would be covered with no exclusions and everyone would be covered. Laws would need to be in place to prevent the government from denying claims for procedures required like cancer treatments, aids medication etc. Any plastic surgery would be paid for by the individual and not covered by the universal healthcare unless it was medically required due to an accident or life threatening situation.

 

Making something mandatory and still allowing 3rd party companies to control it is asking for abuse. Car insurance is no different right now in California. You are required to have it yet they are not required to pay out regardless of how much you pay in. You could have paid in 200K for the life of your plan and they can still deny payment based on your level of coverage. Where did that 200K go?

Of course the government would need to oversee insurance. In Belgium, we have what we have in health-insurance funds, called "mutualiteiten", the largest of which are part of the large social "pillar movements" (the largest being the Christian, then the socialist, then the liberal). These are loosely affiliated with their corelating unions, who help the government in managing social expenditure (and they're actually very efficiënt at that). The mutualities are a sort of front-end which repay parts of health expenditures depending on what is covered (not every expenditure is covered equally) and relay the information to the government. aside from that, they also provide social services and youth camps.

It's a system that works well and costs a lot less per person then the private insurance system in the US.



Aeolus451 said:
WolfpackN64 said:

And I already explained to you in detail why that doesn't work.

http://www.seattletimes.com/business/retail/latest-study-seattles-wage-law-lifted-restaurant-pay-without-shrinking-jobs/

And maybe you should research things properly before spouting neoliberal nonsense.

..... Do you not read the articles that you source?

First of all, the new study was done by a professor from Berkeley of all schools..... A very liberal school that's been in the news not that long ago that suggests that the staff there might not be so objective on anything.

Further along in that article.

"A city-commissioned report by University of Washington researchers last year reached a more mixed conclusion.

That study said the law indeed helped to raise the hourly pay for low-wage workers.

But it also concluded that while the employment rate for such workers was better than the historical average due to the booming overall economy, the minimum-wage law itself appeared to have slightly lowered their employment rate and hours worked, relative to regional trends."

"Heidi Mann, who with her husband owns a Subway franchise near the Shoreline border, said she had seven employees, including her husband, two years ago. But she’s gradually had to let four of them go and is down to one full-timer, one part-timer and her husband, who’s working 60 hours a week and likely to take on more hours soon, she said.

Because she’s a franchisee, her Subway is considered a big business and must pay $15 an hour. “That’s why our prices are higher than the Subway in Shoreline or the mom-and-pop shop down the street,” Mann said.

She raised the prices of sandwiches an average of 86  cents to help offset the minimum-wage boost, and said she’s lost customers because of the increases."

 

It sounds like this isn't going so well. I'd like to see multiple studies done on this when the full 15 is affecting every business there for a bit. I also want to see how it affects overall hours per employee, weekly/monthly/yearly earnings etc in comparison to before the law took effect.

 


Of all schools... Berkeley is internationally recognized. Just putting this article aside because it's from them is very ad hominem.



Superman4 said:
Cobretti2 said:

Entry level job pays $32 an hour here at Ford. Most would be closer to $45-50 an hour with 5+ years exp.

This is where the unions are hurting american jobs. Why would a company stay in the US if they are forced to hire Union employees at inflated rates?  They can move overseas, not pay medical benefits, high wages or retirement and rake in the savings. They still wont pass that savings onto the consumer.

That's what the companies would say even when their income is more then healthy. If you think unions are the devil, fine, go and de-unionse the whole US. I'd wonder how long it takes for you to go back to early industrial age exploitation capitalism.



Aeolus451 said:
WolfpackN64 said:

Oh please, costs for companies have been going down worldwide since the 1980's. Campanies are playing nations against each other to get the best bargain price on their taxes. I've been hammering the point for COMPANIES WHO MAKE PROFIT. Companies that turn losses obviously need to cut somewhere. Indeed the goverment must regulate, but the competition between the countries must stop. This downward spiral is ruining public finances and you have come up with NO solutions except to carry on towards economic ruin. Of course the government shouldn't strongarm companies when it's not necessary, but companies are always in a lower position then the state. If a few companies need to be disowed because they broke their contracts, so be it.

Ford once recieved several million euros in Belgium for them to upgrade their factory. That was a made deal. One year later, Ford packed it's coffers and left abroad. In this case, the state has every right to seize assets since Ford basically stole public money while under contract.

And please, Venezuela is a poor example. Venezuela has a structural economic trade problem, not a problem caused by unionism.

Provide a decent solution, then I'd listen.

That's false. If that was case then they would be making even more money since the keep charging more for the same services. Costs keep rising due to a multitude of things like unions, employee benefits, prices of materials, new taxes/fees, inflation,  etc. It's a fact.  For example, those $15/hr minium wage knuckleheads don't realize they'll lose a lot of jobs if that's implemented because it would increase the cost for businesses by a considerable amount. Mcdonalds would just become automated and everyone would suffer in some sense because of that. I can't imagine what their sandwhiches would taste like if that happened. haha. People need to learn how to be more pragmatic. 

Competition between countries for business. That's never gonna stop and it's a good thing in general. 

I already gave a solution. Just reduce costs for businesses to operate and have employees. It will solve itself. 

Hmm not really true,  You should read about the great decoupling: https://hbr.org/2015/06/the-great-decoupling

While it is not a new article recently we see the issue getting troublesome because profits/inflation is growing thanks to the help of low unployment but salaries aren't..  https://www.bloomberg.com/news/articles/2017-05-19/unemployment-in-the-u-s-is-falling-so-why-isn-t-pay-rising