I have a different take on things. GE executives are not dumb. They have calculated that they can benefit the most by doing what they are doing now. In fact, the executives and shareholders of U.S. companies will benefit the most. I am mostly worried about the debt and employment of U.S. though. Resources are becoming more and more scarce because of the growth of population yet we don't have enough jobs. However, the rich will get much more richer here in U.S.
Diane i agree with what you are saying, it's really a blow for GE and US market. If it sees china is growing market it can increase sales percentage there. US is always on the top when comes to utilization still if GE can handle the profit as same as it doing now, still it won't matter.
I think what I am saying is that it CAN happen. I found it kind of startling to see the similarities between our current situation and the fall of the Roman Empire. A RESET would be nice, but I don't see how it is feasible without some really dramatic changes to our political and economic systems. I am not sure that Americans on the whole are ready for the kind of sacrifices that might require. Time will tell.
Are you trying to suggest that History is about to repeat itself dramatically leading to the fall of the American Emplire???
I feel its more likely that America will go the way of the British Emplire(by declining in power and influence slowly and gradually).
But you won't really see the dramatic collapse which most talk about in great details everywhere.The US just needs a total reset,that's about it and we are free of most of our problems.
The main reason why GE is moving to China is because that's where they see the future (Growth and Profits are).
Plus its also the small matter of the fact that if you want to do Business in China you have to invest there.Much unlike the US where you can simply import whatever you like from anywhere in the world.
Apart from that I agree entirely with the rest of your comments here.
congress should eliminate all Taxbreaks for the Mega corporations;not the SMBs.
As I am sure you already know ,the biggest creator of Jobs in America(for the last 20 years or so) have been the SMBs(Companies with less than 500 employees) and not the Mega-Corps.The Mega Corps are anyways big enough to fend for themselves and don't really need my tax Dollars.
What do you think?
As for Immelt's step-Its simple really.They see more growth in China than in the US.That's why they choose to invest there.But if they do choose to play by those rules then they don't deserve any Tax breaks or Tax incentives of any sort whatsover from the American Taxpayer.
@TaimoorZ, you are right this is not a GE problem. GE is just an example - and in my mind an extreme example because of Immelt's post as "Jobs Czar." Clearly, companies need to do what they must to continue to grow and profit. Beyond the hypocrisy of the Immelt case, I guess my bottomline fear is that our "land of opportunity" has run its course. Then what?
I am not sure if I would completely blame GE in this case. The primary motive for companies is maximizing profit and that's what GE seems to be doing. There are obvious cost savings by moving production to China. Increase in GE's profits will ultimately give better earnings to its US shareholders and they should not complain so much. As for the labor, perhaps the same workforce can be utilized in some other industry where US has better competitive advantage.
This sound familiar?? Could the great experiment (aka the U.S.) be on the same road?
Reason why the Roman Empire fell (source: http://www.roman-colosseum.info):
Unemployment of the Working Classes Cheap slave labor in turn resulted in the unemployment of the the people of Rome who became dependent on hand-outs from the state. The Romans attempted a policy of unrestricted trade but this led to working class Romans being unable to compete with foreign trade. The government were therefore forced to subsidize the working class Romans to make up the differences in prices. This resulted in thousands of Romans choosing just to live on the subsides sacrificing their standard of living with an idle life of ease. The massive divide between the rich and the poor increased still further.
Failing Economy
The Government was constantly threatened by bankruptcy. The cost of defending the Empire, the failing economics, heavy taxation and high inflation was another reason why the Roman Empire fell.
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Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
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