Lockheed Martin pen

[mz]

http://twitpic.com/34g3s6

Photo by Ben Brockert of Armadillo Aerospace.

 

[Stargazer]

The irony of the picture struck me: surely, there wasn't an American-based company that could have made the custom pens for Lockheed Martin, right? It had to be done in China? Employment is at stake all over the world because of this kind of decisions. Saving money by sub-contracting abroad at the expense of local production. Awful!

 

[sferrin]

I doubt LM dialed up China and said "make us some pens". They probably got some company that does all kinds of corporate schwag like that to make up some pens and THAT company contracted to China. :

 

[dannydale]

I doubt LM dialed up China and said "make us some pens". They probably got some company that does all kinds of corporate schwag like that to make up some pens and THAT company contracted to China. :

Well, THAT company is why we have a nation full of college students getting saddled with house-sized debts with Sallie Mae (they need a Boot to the Head too) just to get MBA degrees worth only a burger-flipping McJob at the end. I'd sooner short-circuit this by inventing a chefbot, and make SM realize they're not getting "their" money back. I suspect it's more about SM to manufacturing a new indentured servant class anyway.

My point essentially echoes that of Rent Is Too Damn High guy.

 

[Orionblamblam]

Well, THAT company is why we have a nation full of college students getting saddled with house-sized debts...

No. THAT company is simply doing proper business. If it's cheaper to have pens made on the other side of the planet and shipped to Your Country than it is to make them in Your Country... whose fault is that?

If you want more companies to do manufacturing in Your Country, there is a really easy way to make that happen, and without protectionist trade practices that can lead to trade wars and depressions: reduce, preferably eliminate, corporate taxes. If a company did not need to pay taxes on income, or pay sales taxes on items or raw materials, costs would plummet.

Of course, now the tax burden now falls to the income tax payers (if you're dumb enough to not slash the budget). However, since more companies would now want to do businesses in Your Country, you'll have more taxpayers getting higher pay (and thus maore people paying more tax), while at the same time slashing the unemployment numbers and the welfare rolls.

 

[mz]

Of course, few people are willing to work like many of those in China, in slave-like conditions.

And, deriving from that, China might have labor unions some day if it opens up as a society.

Stuff imported from there would be more expensive but you would have more employment in the manufacturing sector in the west again.

 

[Steve Pace]

Boy oh boy, that pen's getting a lot of ink. Nuk, nuk, nuk... -SP

 

[Orionblamblam]

Of course, few people are willing to work like many of those in China, in slave-like conditions.

Emplying slaves is of course a cost-savings measure, but the savings are not that spectacular. As memory serves, the direct labor costs at the John Deere farm implement factory in Moline, Illinois, amounted to something like 15% of the cost of the finished products (tractors, combines, etc.). If they could somehow eliminate the labor cost, that 15% would be pure profit. However, going from Union workers to slaves won't entirely eliminate the labor costs, and of course the quality of the work will decrease. Yes, it may be startlign to hear that you can actually get lower quality work than what the UAW will provide, but it's true... slave labor tends to be kinda low-skill.

The tax burden, of course, is a far greater issue. It's a direct cost to the company... and to their suppliers & vendors (and *their* suppliers and vendors). It's also costly in that companies need to have standing armies of accountants just to deal withg the taxes, and other standing armies of accountants and lawyers to figure out ways around the taxes

China might have labor unions some day ...

And on that glorious day, when the UAW & AFL/CIO march in and shut down production, the balance of trade will reverse as Chinas productivity grinds to a halt.

 

[Hammer Birchgrove]

What I don't get is that it was not only "OK", but also "the right thing to do" to put an embargo on South Africa because of apartheid, but if you suggest to do the same against "Communist" China, because of how they treat its populace in general and the invaded Tibet to be specific, and economists and politicians will yell at you. :-X

Anyway, the low value of the Yuan is an protectionist measure as good as any. :

Sorry for the rant.

 

[Hammer Birchgrove]

Of course, few people are willing to work like many of those in China, in slave-like conditions.

And, deriving from that, China might have labor unions some day if it opens up as a society.

Stuff imported from there would be more expensive but you would have more employment in the manufacturing sector in the west again.

Or maybe it will be Africa's time to get a place in the sun, to paraphrase the Kaiser.

 

[mz]

Of course, few people are willing to work like many of those in China, in slave-like conditions.

Emplying slaves is of course a cost-savings measure, but the savings are not that spectacular. As memory serves, the direct labor costs at the John Deere farm implement factory in Moline, Illinois, amounted to something like 15% of the cost of the finished products (tractors, combines, etc.). If they could somehow eliminate the labor cost, that 15% would be pure profit. However, going from Union workers to slaves won't entirely eliminate the labor costs, and of course the quality of the work will decrease. Yes, it may be startlign to hear that you can actually get lower quality work than what the UAW will provide, but it's true... slave labor tends to be kinda low-skill.

The tax burden, of course, is a far greater issue. It's a direct cost to the company... and to their suppliers & vendors (and *their* suppliers and vendors). It's also costly in that companies need to have standing armies of accountants just to deal withg the taxes, and other standing armies of accountants and lawyers to figure out ways around the taxes

China might have labor unions some day ...

And on that glorious day, when the UAW & AFL/CIO march in and shut down production, the balance of trade will reverse as Chinas productivity grinds to a halt.

There's also a few other things like environmental regulations which are poor in China. The electricity and steel might be cheap but living in a city is like smoking a few packs of cigarettes every day.

 

[Orionblamblam]

There's also a few other things like environmental regulations which are poor in China. The electricity and steel might be cheap but living in a city is like smoking a few packs of cigarettes every day.

Which, from an economic standpoint, is a positive *boon*. yes, it makes peopel sick. yes, it means they'll die younger. And yes, that means they'll work for years paying into their "social security"/pension/welfare system, and drop dead before they can start drawing from it. Huzzah!