Let's not forget the huge medical insurance costs which can be like $1,000 per month per employee, and that is if they are single. If they are married with children, it can be $2,000 per month per employee. Plus many companies offer dental insurance, prescription plan, vision plan, 401k, matching, and profit sharing, or a pension plan. Companies have to match what employees pay in social security taxes, which is 7.65% of an employees' pay, and pay federal unemployment compensation taxes, state unemployment compensation taxes, and workers compensation. Plus the employees want tons of paid vacation and holiday time. They complain about their boss all day, spend half the day surfing the web, and gossip about other workers. If workers in the U.S. worked without any benefits or paid vacation time, then we have a remote chance of bringing jobs back to the U.S., and I emphasize remote. Even then, I don't think it will happen. Once manufacturing in Asia becomes too expensive, which it probably will one day, next stop is Africa, where you can find workers for $2 per day. How in the world can western countries compete with that?
Vinny, I'm not arguing with you, I'm just asking a question: If rich worker compensation is such a huge problem, how come Germany still has such a strong and growing industrial base while we are in free-fall?
And thus the conversation turns to... drumroll.... Trading Financial Futures!! As long as we are riding this dinosaur culture run by women and children all the way down might as well make some $ and enjoy the ride!! When the drug cartels finally do take over the overt leadership we might have to pay them or make peace with them somehow but whatever, that's in the future somewhere!
I'm not arguing. I'm just saying that it's very expensive to have an employee in the U.S. As far as Germany goes, I guess the country fears riots from the people and perhaps the CEOs care about the well being of their own people.
The saving grace for the US will be the growing middle classes in the developing countries. Once they get a taste of the good life they will demand a higher standard of living, which will make the playing field more equal. Before then however, things will get a whole lot worse as a powerful collapse of our financial system and economy is not far off. There are many parallels to the Wiemar Era in Germany which will lead to the rise of a dictator/strongman who rallies the hungry masses. Rennick Volker out
I writing you a citiation for mixing your metaphors. I know its more fun that shooting monkeys in a barrel but its got to stop.