Our economy is changing every day for better or for worse. We have experienced several stock market corrections over the last several years but salaries have not experienced a correction in years. It seems that every year, for whatever reasons, salaries go up even though our world competitor’s cost of labor do not increase. We have become collateral damage.
Inflated salaries that are carried by the so called developed countries (U.S.) are now competing with minimal salaries from countries in development for example INDIA. Here you have a clear example of how outsourcing is affecting the business development is U.S., thousands and thousands of jobs are being exported abroad paying pennies on the dollar and those exported salaries are helping other countries develop to the detriment of ours. I understand that in many cases it makes good business sense to lower the cost of services and /or products to improve the bottom line of many companies like WALMART, TARGET, MATTEL & others that manufacture abroad, but it comes at an immense cost to our Nation. When you export manufacturing and services, the cost of production may decrease, but those lost salaries affect the Social Security and Medicare that were supposed to help the treasury. We have become collateral damage.
GENERAL MOTORS and CHRYSLER are a good example of the inflated salaries and benefits paid in U.S., in comparison with developing countries offering cheap labor
or foreign companies manufacturing in the U.S. like TOYOTA and HONDA, which employ thousands of U.S. workers but do not permit unions to inflate their costs. We have become collateral damage
Technology has created many jobs for educated people that deserve higher salaries, but at the same time the jobs held by those not so well educated Americans are lost, and we are not doing a good job cross training them for this new world economy, therefore, they lag behind and become unemployed. We have become collateral damage
Is this the beginning of the end for the U.S. economy that imports more that what we export in order to supply cheaper goods to a consumer, a society that is not able to see the difference between the WANTS and the NEEDS? I am sure that most of us would want something that we currently don’t have, but the question is, do we need to keep on spending our dollars so the rest of the world survives at our cost? Or should we become a little more protective of our technology, our jobs and the future generations to come by spending what we have and what we don’t have? We have become collateral damage
Many of the unemployed prefer to receive an unemployment check instead of going out and get a job, just because they are not willing to accept a lower salary than the one they had when our economy was healthy. The unemployment benefits are now being extended and Americans are simply staying at home waiting for the unemployment check. We have become collateral damage
Yes, this is a New World Economy and we are all part of it, but AMERICA must come first.
Yes, we should keep helping the world to develop but AMERICANS come first. Maybe this Protectionist Policy might not be romantic, but is certainly practical in these critical times. Once our house is in order, we can then continue helping the rest of rest of the world
José F. Padró, CPA.
padrocpa@padrocpa.com
PADRO and Company, P.A.
The information at this Site has been provided by José F. Padró , CPA. for general information purposes. It does not constitute legal, accounting, tax or other professional advice or services and is presented without any representation or warranty as to the accuracy or completeness of the information.
