General Question

rockstar's avatar

In response to the raising oil prices. Do you think that US companies will start manufacturing products in the States once again?

Asked by rockstar (675points) July 18th, 2008

Seems like it would be a logical step. That would definitely give us more jobs here plus lower the price of products by not having to pay for the rising transportation costs from them being shipped from overseas. Which both of those would help out our economy.

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6 Answers

crunchaweezy's avatar

I’d still think it’s cheaper to product in mass quantities over seas than to start producing in the states.

soundedfury's avatar

It’s already started. There was an article in the New York Times a few weeks back. Steel and heavy industry is moving back, and the shift is affecting China’s ability to maintain their growth, since we’re supplying a significant amount of raw materials to their expansion.

tinyfaery's avatar

If industry returns to america, corporations would save on gas, but they’d end up paying more in labor, have to adhere to stricter environmental regulations, provide healthcare, pay for insurance, etc. There is a reason american corporations manufacture their products overseas—cheap labor, little regulation, and no accountability.

allengreen's avatar

There are hudge tax incentives instituted by George W Bush back in 2002, give to companies who move jobs overseas.

The only chance of reversing this trend is to vote out the GOP, and pressure the democrats to roll back tax benifits for companies that move jobs off shore.

margeryred's avatar

I doubt they will come back… think of all the costs they have been cleaning up on…

SSI taxes, unemployment taxes, Workers Compensation, Health Benefits…

They will just have to take in lower profits or cheapen up the product – cut more corners, but they won’t come back…

qashqai's avatar

Would you be able to match or compete with the two-point-something dollars hourly fare a young chinese or korean guy is paid for building your favourite apple device?
Oil prices have to be two or three times what they are now to even think about that.

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