I'm not sure either candidate will be better. No amount of realistic tax incentives will stave off a shift of jobs if the underlying economics don't work. (Neither will a like amount of trade obstructionism).
That said, we're starting to see companies in the past two years realize that we can do electronics manufacturing really, really well by adding design value and services on top. That's happened since Obama was elected and there weren't a ton of incentives that I can see that spurred that. I'm not sure it would have been any different if McCain had won.
Wow, this topic is likely to attract lots of 'your party will destroy this country, my party is perfect' posts. I hope not, but you don't always get what you want.
China and US, as with any two politically and economically strong countries, have a love-hate relationship and so we can always expect contradictory statements to be coming from both governments.
I hope they both realize that despite all the political posturing and economic competition, in the end both countries receive an enormous benefit from each other's existence and that both will continue to prosper as long as they remember that and continue to work to smooth out some of the worst conflicts before things ever get dangerously out of hand.
I agree that neither of the two candidates has articulated anything that could make a credible difference. The fact that our corporate taxes are the highest in the industrialized world doesn't help, certainly, but on the other hand, ask Apple why they use Foxconn. Hard to compete against $10 per week, 60 hours per week labor. And the flexibility advantages of having assembly lines manned by humans rather than robots.
What can politicians offer whose side-effects aren't worse than the disease? The only thing I can think of is to keep the IP theft problem on the front burner. No one wants to work with a partner who makes it a habit to steal from you?
Actually, lowering corporate tax rates probably wouldn't help the situation much, at a time when corporations are getting the ability to defer taxes on overseas profits. That alone certainly gives them an incentive to shift their operations abroad.
Junko, if a corporation has to pay just about 40 percent taxes for profits made in the US, but much less than that for profits at overseas operations, you don't think that LOWERING that US tax rate wouldn't help matters?
If the goal is to move operations back to the US, either you decrease the US corporate taxes, or you levy stiff taxes for overseas operations. And the latter approach is riddled with undesirable side-effects, namely trade wars.
You are absolutely right, Bert.
President Obama and Governor Romney may have their differences on tax policy, but both candidates agree that the United States needs to cut its corporate tax rate.
Including federal, state, and local taxes, corporate profits are currently taxed at 39.1 percent, the highest rate in the industrial world.
But somehow, with all the tax loopholes around, I don't think that this alone will be a single bullet to keep jobs in the United States.
OK, it may be a good start, but I don't think giving corporations an incentive to stay their operations in the United States is a bad idea at all.
Americans would not do manufaturing jobs like the girls doing assemble in foxconn.
It's hard working job.Need transfering from day to night.
Americans doing designing,china make thing together.Like food chains
I don't like mitt rommey this guy,if i have the right of voting in usa, I will give my vote to obama.
Americans are more than willing to do the manufacturing jobs done by slave labor in China; the major difference is that Americans won't work under the appalling conditions and for the marginal wages paid in China.
The best thing America can invest in is robotics and automation; a high speed, fully automated assembly line that can match or exceed the throughput achieved by Foxconn eliminates one major reason for exporting jobs to China.
America recently became the number one producer of natural gas and is on its way to becoming the number one oil producer (at the moment the US is just behind Saudi Arabia). That means low energy costs.
With an American manufacturing environment with low labor costs (via automation) and low energy costs (via fracking/horizontal drilling) the two major reasons for manufacturing in China.
As someone once said: "the rapid improvement of all instruments of production [...] draws all, even the most barbarian, nations into civilisation [...] with which it batters down all Chinese walls"
Romney's energy policy is very interesting. i feel like US will be somewhat like Saudi Arabia in the future, supply the gas and coal to China for high tech. production. it is also a good food chain, good help to reduce the polution in China and Americans can shift to energy industy to avoid direct competition with China. good or not good?