Tuesday 27 September 2011

ARGENTINA VERSUS THE USA

Argentinian model Naomi Preizler

If you buy a BlackBerry in the USA, it will most likely have been assembled in Asia.

If you buy a BlackBerry in Argentina, it will have been assembled in Argentina.

One of the main reasons for the Economic problems in the USA and Europe is that jobs have been moved to Asia.

Argentina is trying to protect its workers, according to The Economist

In October 2011, Brightstar, a multinational manufacturer, will begin assembling BlackBerrys in Argentina.

Argentinian workers will assemble the pieces and put them in local packaging.

Making BlackBerrys in Argentina will be more expensive than making them in Asia, but it will give jobs to Argentinians.

The policy of the Argentine government will cut foreigners' share of Argentina’s mobile-phone market from 96% in 2009 to a forecast 20% by the end of 2011.

Argentine's president Cristina Fernandez de Kirchner

Argentine manufacturers have been booming.

Argentina now imposes more 'trade limitations' than any country except Russia.

Argentina cannot raise tariffs, because it belongs to the Mercosur customs union.

But Argentina has various tactics it can use to limit imports.

The Argentine government is planning to limit total foreign landholdings to 20% of the country’s territory.

It is planning to stop any individual from acquiring over 1,000 hectares (2,471 acres).

In the October 2011 election President Fernández is expected to be re-elected.

Big US corporations like cheap labour.

US hourly wages are $33.53.

(Average hourly take-home pay for US workers was $23.03. Social insurance expenditures add $7.90 to hourly compensation and benefits paid by employers add $2.60 per hour for a total labor compensation cost of $33.53.)

US hourly wages are about the lowest in the developed world, way below those in Norway ($53.89), Denmark ($49.56), Belgium ($49.40), Austria ($48.04), and Germany ($46.52).

Big corporation would rather pay $1 per hour rather than $33

Argentinian model Floppy Tesouro

Dr. Paul Craig Roberts is a former Assistant Secretary of the US Treasury.

At Global research, on 25 September 2011, Dr Roberts explained that one of the main reasons for the economic problems of the USA and Europe is the moving of jobs to Asia.

America and Europe: Saving the Rich and Losing the Economy

In the last 10 years:

1. The US lost 54,621 factories.

2. Manufacturing employment fell by 5 million employees.

3. The number of larger factories (those employing 1,000 or more employees) declined by 40 percent.

US factories employing 500-1,000 workers declined by 44 percent.

According to Dr Roberts:

"It is US corporations that move their factories abroad...

"Half of US imports from China consist of the offshored production of US corporations...

"In China as of 2008, total hourly labor cost was $1.36...

"A corporation that moves 1,000 jobs to China saves saves $32,000 every hour in labor cost...

"These savings translate into higher .... executive compensation, not in lower prices for consumers who are left unemployed..."

It's not just factory jobs.

"The high speed Internet has made it possible to offshore many professional service jobs, such as software engineering, Information Technology, research and design."

Meanwhile, the US government allows in each year one million legal immigrants and an unknown number of illegal immigrants.

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