Corporate Decisions

It is unfortunate that once again we have come across another article revealing the real reason why corporations ship American jobs overseas.  The difference in this story is how a German firm - Siemens - is opening a new manufacturing facility in North Carolina due to the declining wage structure in America.

We want to assure our readers that we encourage any company to open new plants in the USA.  The main reason why our country continues to struggle from the 2008 financial disaster is due to the trade agreements both political parties have entered our country into.  We have always stated the significant decline in wages and salaries that has occurred over the past few decades have resulted in a lower standard of living for the majority of Americans. 

According to Dean Garfield president and chief executive of the Information Technology Industry Council the reason why Siemens and other firms are investing in America is due to " ...acceleration in labor costs in other markets."  This trade group represents 50 of the worlds largest tech firms.  A more accurate way of describe his comments - " Now that America's wage structure has been pummeled by world trade agreements it is now time to reenter the American market and take advantage of America's legal structure, transportation system, communication networks, education system and Third World wages."

This is shameful to be polite.  It is important to realize that it is not the fault of foreign companies to take advantage of the current situation.  Ask yourself if you had a choice between building a new plant in America or Thailand which would you select?  Make America's wage structure equal to that of a worker in Thailand and the answer is obvious.

Another interesting quote in this article comes from Peter Coclanis Director of the Global Research Institute at University of N.C. at Chapel Hill.  Sanderson Farms is a chicken processing plant which is opening two plants in the eastern part of North Carolina.  Mr. Coclanis proudly proclaims that Sanderson Farm's made a good decision to locate in that part of the state because "  .....you can pay workers next to nothing."  Unbelievable.

Buy what your neighbor produces.  Folks it is the only way out of this mess.  

 http://www.washingtonpost.com/business/economy/siemens-plant-in-charlotte-offers-lessons-as-obama-romney-talk-job-creation/2012/09/04/f52304fa-f30c-11e1-adc6-87dfa8eff430_story.html    

Hourly Wage Destruction

Unfortunately, we have another article about the assault on America's middle class.  It is important to understand while a job is beneficial it must have a wage that enables the worker to prosper.  One of the troubling aspect of world trade is the lack of sufficient safeguards of wages within the USA.

NAFTA and WTO trade agreements were structured to permit US corporations the ability to shift production of products overseas to take advantage of cheaper wage structures.  This has resulted in the destruction of the middle class in America.  These trade agreements must be amended to protect the standard of living of our middle class.

You simply cannot purchase a home, save for your children's college education and provide for their basic needs on a wage of $10.00 per hour.  Why our so called "political leaders" in Washington do not comprehend this very basic understanding of the needs of  the people they are supposed to be representing is troubling.

Trade agreements should always be for the benefit of the middle class - not for the shareholders of corporations.  Wages - not dividends - is the path to prosperity for America's middle class.

http://www.nytimes.com/2012/08/31/business/majority-of-new-jobs-pay-low-wages-study-finds.html?_r=1

Our Hero

The All American Store has many individuals who we consider hero's for one reason or another.  Within the financial community Shelia Bair is one such person.  Shelia used to be the Chairperson of the FDIC - the financial institution that guarantees the money in your savings and checking account - within certain limits. 

Since leaving the FDIC she has written a number of articles that provide the average American with insight as to how the financial markets in America operate.  This article is about the ongoing investigation into the manipulation of the LIBOR rate.  This rate is used by all financial institutions in arriving at the interest rate they charge you for credit cards, auto loans, home mortgages and any other borrowed money.

The important point of her article is that manipulations within the financial industry was know by many - so called government watch dogs - and yet nothing was done to stop it.   If you as a private citizen attempted to do the same you would be arrested. 

It is unfortunaley the world we live in.

http://finance.fortune.cnn.com/2012/08/17/libor-scandal-fed/

Your Fed at work.

This is a article describing what financial institutions our Federal Reserve lent money to during the severe financial crisis of 2008 and beyond.  What makes this story so interesting is the number of foreign banks who sought and received taxpayer money to stabilize their balance sheet. 

International finance is a extremely complicated area to work within.  While we admire those who can flourish in this work environment - it is unfortunate that during this time period - with millions of American homeowners and small businesses in severe financial stress the Fed did not do more to help them. 

It just goes to show that when the world needs help it is Uncle Sam they turn to. 

http://blogs.wsj.com/economics/2012/08/20/paper-foreign-banks-were-biggest-taf-borrowers/?mod=WSJ_latestheadlines
 

Shameful

Articles such as this should make all Americans second guess the value of trade agreements our government has entered into.  The level of poverty in America is quickly rising to near record levels.  The article states the reason for such levels is the "astonishing number of people who work at low paying jobs". In fact according to the think tank Economic Policy Institute half the jobs in America pay less than $34,000 per year.

When our politicians enter into trade agreements it should be for the sole purpose of enhancing the standard of living of all Americans.  Unfortunately their thought process has been influenced by multi-national corporations whose sole purpose is enhancing the value of their shareholders.

We have spoken on numerous occasions of the titanic struggle between shareholder value and the middle class.  Articles such as this clearly demonstrate trade agreements that fail to protect wages and benefits of the middle class doom them to a quality of life that never should occur in America.

http://www.nytimes.com/2012/07/29/opinion/sunday/why-cant-we-end-poverty-in-america.html?_r=1