Bring It On!

Corporate America Hedging Bets on the Border

June 21st, 2007 | by Matthew OKeefe |

In Nogales, New Mexico, which is on the border of the United States and Mexico, corporate America is hedging its bets and its bottom line by playing both sides of the fence that will never be built. While the government of the United States is scurrying around every way that they can to deal with immigration, American companies are fighting the traffic coming out of Mexico to get into Mexico for the cheap labor. Just for reference, Nogales is also a city on the border with Nogales, Mexico.

Closing plants in the States and moving the equipment just over the border is very profitable to the bottom line and many citizens of the former United States companies follow the bottom line of the company. Moving to Arizona and commuting over the border to work every day at US wages to train Mexican workers how to build the products that used to be made in the good old USA.

While the American workers make top dollar, their counter parts make in a week what the American makes in a few hours. Two or three hours at the most. This could be taken as a bad thing in some peoples mind and it is in some respects in mine. American jobs are now over the border but if you think about it, those jobs were lost if foreign nations can offer a cheaper product that is made the same as it was in the USA.

It is kind of ironic that the north east of America bled jobs to the south in the textile industries back in the sixties and seventies and those jobs moved to the southern states of America for cheaper labor in order to compete. Then those same jobs in the south moved to South America in order to compete in the nineties. This presents an endless pattern that is simple economics. When a product can be produced cheaper with the same quality then the purchase orders for those products will follow.

There is only one thing that is consistent in this blood bath of capitalism that is that the bottom line and that is that it has to pay the payroll. If it isn’t working then other avenues have to be researched for the company to survive.

I may be a staunch liberal but I am a realist and jobs will go when the company can not compete to meet its payroll. Where we as Americans have the edge on the world industrial and technology knowledge base is that we create the markets and it takes a ton of time to copy it. That is where we should focus our nations attention on. Then again, we as Americans are always coming up with new stuff simply because we are free to think outside the bubble.

America and its people are the greatest gift to the world because what we do today is what some impoverished nation somewhere around the world will do twenty or thirty years from now and make a decent living from. While they are doing that job, we will have moved on to ideas and theories that would blow their minds. That is the way of the world and I like being in the driver seat.

Just something to make you go hmmm?


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