|Another Abandoned Factory Building in America|
According to The American Prospect, between 2001 through the end of 2009, American Manufacturing has lost over 42,400 factories. YES that's not a typo, Factories not jobs. Each of these factories employed an average of around 400 employees! While there are no good statistics between 2009 to current, a trip through places like Ohio and Michigan will tell you that the situation has only deteriorated.
Almost every article that you read on this issue will tell you that the reason manufacturers are leaving the U.S. is because labor costs are cheaper in China. While this may be true for low cost, low tech products, the truth is that U.S. manufacturers enjoy a MASSIVE edge in efficiency that translates to lower total manufacturing costs in the U.S. vs overseas counterparts. A look at the Steel industry confirms this. The Chinese use over 10X the man hours to produce a ton of steel vs. the U.S. and similar comparisons can be made everywhere. If the issue was simply labor costs being cheaper in China, you would see the Ship building industry in Norway decimated, since they have some of the highest cost of labor in the world. Same for the Japanese and the Germans. They are not what you would call "Low Cost Labor". Yet their Manufacturing sectors remain extremely robust.
- 10% Flat Corporate Tax Rate
- 10% Flat Personal Income Tax
- 10% Flat Import Tax