Friday, September 11, 2015

TPP: Reshoring NIKES

The nonsense of making nikes in usa proves TPP is bad program:
That would boost Nike’s current domestic employment of about 26,000. But it would still be only a small fraction of its global workforce, estimated at over 1 million, with most in manufacturing jobs in low-wage countries such as Vietnam and Indonesia. While Nike makes some shoe components in the U.S., such as its trademark Air Soles, it has not assembled shoes in the country since 1984.
Management is the key in business, and Nike outsoources the management of shoe production, and then legally launders profits overseas to avoid USA taxes... USA labor rates have zero impact on international trade or domestic production.
“There are only two ways of making shoe production come back to the United States,” he said at a National Press Club speech. “Either new advances in automation, which from my viewpoint are a ways away, or establishing tariffs and quotas that dictate that shoes have to be made in the United States.”
Nike’s decision to pursue domestic manufacturing, even on a relatively small scale and conditioned on the ratification of a complex trade deal, is a triumph for Obama, who was reported to have pressed another American corporate titan to do the same with little success.
At a 2011 dinner in Silicon Valley, according to a New York Times report, Obama pressed the late Apple chief executive Steve Jobs for why iPhones – tens of millions of which are made in China and elsewhere – couldn’t be made in the U.S.
Jobs was, as Knight had been more than a decade earlier, dismissive: “Those jobs aren’t coming back.”
Those jobs aren't, nor should they, because they are false economy jobs.  What USA needs is a new real economy, free trade and an end to corporate welfare.

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