Quote:
Originally Posted by 1stLand
Globalization at work.
Canada and the States barely manufacture anything besides vehicles. Other nations can produce those products cheaper, hence north america can buy those consumer goods cheapers.
It is a competitive global labour market now. Telecommutting technology is only going to make it more competitive, as video conferencing, virtual offices, working from home enables people from other countries to take certain north american 'white collar' jobs.
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You got that right. China is basically the banker of the US and this likely won't change anytime soon. Global competition + pension plan liability basically killed GM and other companies in the most competitive industrys. There is no way we will see a return to pension plans at companies as those days are long gone. Global compeition has changed the playing field and this not only effects pension plans but all employee benefits. Look at Starbucks.....today they spend more on health benefits then they do on coffee. Not sustainable. It extends elsewhere also. Look at the 1/2 Trillion pension liability that the State of California is on the hook for. Who is going to pay for that? Too big to fail or so big that the government is protecting you....meanwhile the average labor costs in China are $1.27 per hour and the US $25.34 per hour.