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I'm not sure how the taxes work, but I would guess that companies get taxed more when they take their manufacturing overseas. I think the incentive of doing that is the savings from cheaper labor. I did some google searches and if I did them right, minimum wage ranges from $1-2 an hour. Not counting the stuff companies have to pay for each employee on a weekly basis (benefit/insurance stuff)
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Right, they do this because there is significant benefit as opposed to doing it in the States because it costs more. It costs more to do it in the States because government makes it so. There are tradeoffs however, seen in that people like to buy products made in the USA. However, despite that publicity, the price of doing so does not outweigh the amount of people who will buy the product due to it being from the US. This is why they move it overseas. The rich will get richer whether people like it or not, which is what a lot of people fail to see. If the situation gets much worse, the rich will begin to move all their money to Swiss banks and the economy will hit rock bottom in the States.