Core Inflation Rate Highest Since 1981

#76
#76
volkyries said:
Manufacturing went overseas because it was cheaper to do business there. Corporations left to make more money and take advantage of the lower business costs to boost profits. Yes, some policies made it more expensive to do business in the US (taxes, environmental regulations, etc), but a big chunk of the savings was on the cheap labor rates. Not sure what policy would have helped combat US labor costs that other than driving down wages in the USA which I am sure the working class (most people) didn't want.
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Yes, labor is a big factor but excessive regulation and taxes help drive up labor costs also. But look at how manufacturing has become more automated which requires less labor. One would think we would have hit a tipping point where the increased costs in shipping would have balanced out the reduction in actual employees.
 
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#77
#77
Redleg68 said:
You are both right and wrong. Government spending will cause inflation long term, but that bump in inflation from Government spending is not here yet. The current bump is mainly because of increased gasoline/energy costs/ housing costs/rent costs and food costs. Figure out who or what created those price increases and that is where you point your finger for the short term. I feel though that this huge increase in government spending has far worse consequences than inflation.
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That's not completely true, the reason why many Americans (not all but many) are stocking up on certain items and pushing "demand" up for others that they normally would not in an average economic year is because they are flush with cash from the stimulus and child tax credit payments. That massive cash infusion is part of the inflation acceleration. That is artificial demand and isn't a product of regular fluctuations in the market.
 
#78
#78
hog88 said:
Yes, labor is a big factor but excessive regulation and taxes help drive up labor costs also. But look at how manufacturing has become more automated which requires less labor. One would think we would have hit a tipping point where the increased costs in shipping would have balanced out the reduction in actual employees.
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I think the cost of doing business in the US overall is the driving point, not from just wages but also taxes, regulations, insurance and tort costs. Automation can only do so much.
 
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#80
#80
hog88 said:
Yes, labor is a big factor but excessive regulation and taxes help drive up labor costs also. But look at how manufacturing has become more automated which requires less labor. One would think we would have hit a tipping point where the increased costs in shipping would have balanced out the reduction in actual employees.
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Excessive is relative especially when you could move a factory to Asia and have almost no regulation at all aka sweatshops. Some balance is needed between the two obviously. Just curious, what regulations do you think are excessively driving up labor costs?

Not sure about the automation vs shipping. If you have already invested in a factory outside the US, you would probably make it as cost effective as possible through automation and use it until the shipping costs out-weight the costs to build a new factory/moving operations to the US.
 
#81
#81
volkyries said:
Excessive is relative especially when you could move a factory to Asia and have almost no regulation at all aka sweatshops. Some balance is needed between the two obviously. Just curious, what regulations do you think are excessively driving up labor costs?

Not sure about the automation vs shipping. If you have already invested in a factory outside the US, you would probably make it as cost effective as possible through automation and use it until the shipping costs out-weight the costs to build a new factory/moving operations to the US.
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OSHA, Workmens comp, in some places required paid FMLA for starters. Each industry is different and has different regulatory challenges when it comes to labor costs.
 
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#82
#82
volkyries said:
Excessive is relative especially when you could move a factory to Asia and have almost no regulation at all aka sweatshops. Some balance is needed between the two obviously. Just curious, what regulations do you think are excessively driving up labor costs?

Not sure about the automation vs shipping. If you have already invested in a factory outside the US, you would probably make it as cost effective as possible through automation and use it until the shipping costs out-weight the costs to build a new factory/moving operations to the US.
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There is another issue people neglect, and it will catch up sooner or later. If you offshore enough or automate enough of your industry, then you are losing a lot of the better paying jobs. Income is what turns people into consumers. We are tearing down what the industrial revolution built. Also the wealth of nations is built on what a country produces and sells. Being a net importer is a trip to the bottom.

China is a manipulated economy. They can do things we can't to unfairly imbalance trade; we seem to forget that regularly.
 
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#83
#83
AM64 said:
There is another issue people neglect, and it will catch up sooner or later. If you offshore enough or automate enough of your industry, then you are losing a lot of the better paying jobs. Income is what turns people into consumers. We are tearing down what the industrial revolution built. Also the wealth of nations is built on what a country produces and sells. Being a net importer is a trip to the bottom.

China is a manipulated economy. They can do things we can't to unfairly imbalance trade; we seem to forget that regularly.
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I agree on the loss of good paying jobs, but the almighty dollar must be chased. We all play a part to an extent, whether it is the CEO making moves to maximize profits or a consumer looking to pay rock bottom prices for items. I wouldn't say we are tearing down what the industrial revolution built, we are just evolving with the global marketplace. China is manipulated but no one cares as long as they get their bonuses or cheap products. There is a time when it will hit the fan and we finally have to pay the costs for these times, but we will let our kids/grandkids worry about that like so many other things.
 
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#84
#84
volkyries said:
I agree on the loss of good paying jobs, but the almighty dollar must be chased. We all play a part to an extent, whether it is the CEO making moves to maximize profits or a consumer looking to pay rock bottom prices for items. I wouldn't say we are tearing down what the industrial revolution built, we are just evolving with the global marketplace. China is manipulated but no one cares as long as they get their bonuses or cheap products. There is a time when it will hit the fan and we finally have to pay the costs for these times, but we will let our kids/grandkids worry about that like so many other things.
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Yep, short term profits over being around for the long haul. Others in the global marketplace are taking what we give and building on it for the long term while our "visionaries" are laughing all the way to the bank with no cares or plans for the future ... they won't be around to deal with it.
 
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#87
#87
US electronics firm struck deal to transport and hire Uyghur workers

To follow up on yesterday's discussion of cheap labor costs overseas. UEI is accused of participating in the forced removal/forced labor.

U.S. remote-control maker Universal Electronics Inc (UEIC.O) told Reuters it struck a deal with authorities in Xinjiang to transport hundreds of Uyghur workers to its plant in the southern Chinese city of Qinzhou, the first confirmed instance of an American company participating in a transfer program described by some rights groups as forced labor.

The Nasdaq-listed firm, which has sold its equipment and software to Sony, Samsung, LG, Microsoft and other tech and broadcast companies, has employed at least 400 Uyghur workers from the far-western region of Xinjiang as part of an ongoing worker-transfer agreement, according to the company and local officials in Qinzhou and Xinjiang, government notices and local state media.

In at least one instance, Xinjiang authorities paid for a charter flight that delivered the Uyghur workers under police escort from Xinjiang's Hotan city - where the workers are from - to the UEI plant, according to officials in Qinzhou and Hotan interviewed by Reuters. The transfer is also described in a notice posted on an official Qinzhou police social media account in February 2020 at the time of the transfer.

Responding to Reuters' questions about the transfer, a UEI spokeswoman said the company currently employs 365 Uyghur workers at the Qinzhou plant. It said it treated them the same as other workers in China and said it did not regard any of its employees as forced labor.
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Reuters was unable to interview plant workers and therefore was not able to determine whether they are being compelled to work at UEI. The conditions they face, however, bear hallmarks of standard definitions of forced labor, such as working in isolation, under police guard and with restricted freedom of movement.

UEI's Uyghur workers are under surveillance by police during their transportation and life at the factory, where they eat and sleep in segregated quarters, according to details in Qinzhou government notices and local state media.
 
#88
#88
Godfatha said:
Will only get worse as these loons implementing their corporate taxes (tax on end-user consumers) and mileage taxes (again tax on end-user consumers).
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But those things won't affect anyone making under $400K. I heard it from the most popular president ever.
 
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#90
#90
volkyries said:
Excessive is relative especially when you could move a factory to Asia and have almost no regulation at all aka sweatshops. Some balance is needed between the two obviously. Just curious, what regulations do you think are excessively driving up labor costs?

Not sure about the automation vs shipping. If you have already invested in a factory outside the US, you would probably make it as cost effective as possible through automation and use it until the shipping costs out-weight the costs to build a new factory/moving operations to the US.
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Pay to pollute is a fun one for small manufactures.
 
#94
#94
Rasputin_Vol said:
Well, that has just as much to do with urban growth as it does Biden's inflationary moves.
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True. As much as jobs coming to Tenn is a good thing, it can also be a bad thing. Higher demand, unaligned cultures that create problems that have made jobs attractive, created stability and laws to manage spending. There is more and more stress put on the state with lower school quality, crime and homelessness that is not being addressed at the local levels.
 
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#95
#95
Velo Vol said:
Biden has left the tariffs on China. We should blame him for that.

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The country that is openly committing genocide, harvesting the organs of, and holding within internment camps their Muslim population?

If we want to blame him for a tariff lets start with the doubling of the lumber tariff on Canada
 
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