A lot of people don’t understand how capitalism actually works. All these companies are in competition with each other, and their primary purpose is to show profit to shareholders.
The reason all the industry got offshored in the first place is due to the fact that it’s vastly cheaper to produce things in countries with cheaper labor markets. So, the only way manufacturing could come back is if the cost of manufacturing in the west started being comparable to the current costs. There is also the up front cost of moving existing production chains to a new location.
The reality is that there is simply no incentive for companies to take on the cost of reshoring manufacturing, and doing so will make these companies less profitable since their input costs are going to go up. This is the problem that can’t be addressed within the capitalist system.
One approach to solving it would be for the government to start subsidizing companies to move production back and to eat the difference of the cost increase. This is of course a complete nonstarter politically.
If the USA and it’s allies were truly enthusiastic about human rights and democracy, then they should find out how much a company saves by having supply chains with worse human rights protections, and tax them some portion (I’d say at least half) of that saving
To encourage them to employ more expensive staff in countries with decent democracy and human rights laws
(And encourage other countries to transition to better human rights frameworks)
If they were truly enthusiastic about human rights and democracy, first of all they need to stop violating human rights across the world and overthrowing democratic governments. In their current state, they have no right to lecture or “encourage” anyone about “human rights frameworks”.
A lot of people don’t understand how capitalism actually works. All these companies are in competition with each other, and their primary purpose is to show profit to shareholders.
The reason all the industry got offshored in the first place is due to the fact that it’s vastly cheaper to produce things in countries with cheaper labor markets. So, the only way manufacturing could come back is if the cost of manufacturing in the west started being comparable to the current costs. There is also the up front cost of moving existing production chains to a new location.
The reality is that there is simply no incentive for companies to take on the cost of reshoring manufacturing, and doing so will make these companies less profitable since their input costs are going to go up. This is the problem that can’t be addressed within the capitalist system.
One approach to solving it would be for the government to start subsidizing companies to move production back and to eat the difference of the cost increase. This is of course a complete nonstarter politically.
If the USA and it’s allies were truly enthusiastic about human rights and democracy, then they should find out how much a company saves by having supply chains with worse human rights protections, and tax them some portion (I’d say at least half) of that saving
To encourage them to employ more expensive staff in countries with decent democracy and human rights laws
(And encourage other countries to transition to better human rights frameworks)
If they were truly enthusiastic about human rights and democracy, first of all they need to stop violating human rights across the world and overthrowing democratic governments. In their current state, they have no right to lecture or “encourage” anyone about “human rights frameworks”.
So you’re saying US should encourage more companies to move to China? https://www.tbsnews.net/world/china-more-democratic-america-say-people-98686
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