PragerU: America is the world’s largest economy, and yet many American companies are moving jobs and factories overseas. Why? Find out in this short video.
12 Comments on Why Do American Companies Leave America?
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Trump will be the antidote.
Hated the fast graphics — very distracting. I had to just listen to it. Good explanation for the problem. Trump can fix. If Congress bucks him, they’ll be voted out by the people. (They should go anyway.)
Congress must hate America or this would have changed long ago.
Easy to see how it happened. Foreigners simply bribe US politicians, it doubtless happens every day.
If I understand this correctly one thing that was a little misleading in the video was about the profits held overseas would be used to create jobs, build factories etc was quite right but they would be overseas factories and jobs. The moment any of that profit comes back to the US it becomes taxable at the full US rates. I don’t think lowering the tax rate would entirely solve the problem as you would still have to pay corporate tax in the foreign countries where you earned the profit (I think).
I’ve tried to explain this to lefties, they don’t get it. Their response is overwhelmingly along the lines of; Corporations are just greedy, we need laws to limit their greed, we need to tax them more for the business they do in the US.
Me: Well Einstein, then they will cease to do business in the US altogether.
SJW Snowflake: No they won’t! The corporations would rather have some profit than none at all.
Or it goes down something along these lines.
SJW Snowflake: It is due to greed and manipulation that corporations invert their organizations, the Rethuglicans allow them to leave the country. It should be against the law for corporations to invert.
Me: No they don’t and corporations use existing law to their advantage.
SJW Snowflake: No, they’re breaking the law and the Rethuglicans allow them to do it.
Me: Look a squirrel!
Or, in a word, government.
The Democrats have seven Senators up for election in Trumpian blue states in 2020. They cannot be too obstinate to the Trump pro-American agenda or they will be booted in two years. And (seemingly) Trump is pretty capable of using the bully pulpit to point out who is blocking good legislation.
This is some of the big medical device companies are now, suddenly, “Irish”. Sort of like everyone who wants to drink is “Irish” on St. Patrick’s day.
The risk side of the equation for holding profits in other countries is what happens if those countries fall? Where is the legal protection? In those countries courts? Doubtful. The loss would be total. World Courts are well known to be anti-American as under the influence of the Sharia laws.
In addition to unfavorable US tax rates, regulatory costs have a huge effect on a corporation’s location decisions. I recall a few years ago, an interview with a higher up at Intel stated that regulatory costs alone added about $1 Billion cost to building a new chip producing factory.
I assume this is why Trump and fam invest so much overseas, have big debt to Chinese banks, hire foreign workers in other countries to manufacture their products, I assume now that he’s pres-elect, he’ll stop these practices. As he said in debates, he only takes advantage of laws and loopholes Dems didn’t lclose. Glad to know Trump will be turning this around and building with American employees in American factories! Great that he’s bringing back the jobs.