Old 04-26-2006 | 03:12 PM
  #40  
deadstick
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1. Lower the price of the 737 to $3 million dollars below that of Airbus.
Cheaper airplanes = more customers = more revenue for Boeing, an American company.
2. Spend that extra $3 million on research and development. That would provide more jobs at Boeing, and better technology leading to more efficient Boeing aircraft.
More efficient airplanes = more customers = more money for Boeing, an american company.
That's all fine if you are a stockowner, but not if you are part of the working class of America. Putting Americans out of a job because it benefits your bottom line will eventually erode your client base. Unemployed people don't fly. They stay at home worrying about their mortgage. Sure, the rich people will have more money to spend on goods, but those goods were outsourced, so the working man gains nothing from it. When people stop flying, those orders are going to slow down, Boeing will have fewer orders, stockholders sell, and the Keynesian circle starts to stall out (no pun intended).

Now when countries like China want to buy medium size aircraft, they will buy from Boeing (as opposed to Airbus, a foreign company) because Boeing's aircraft cost less, and have more technology. Billions are poured back into the US economy.
ALL BECAUSE IT WAS MANUFACTERED FOR LESS!
Thank you outsourcing!!!
Possibly, until they start to manufacture their own medium size aircraft. Let's also not forget that as a very nationalistic people, they would buy Chinese goods even if they cost more than American. Turning backs on a nation's own workforce is an American defect, not a common practice everywhere. China's own growth in GDP is also beginning to cause them problems, so it is likely that the trade deficit will never balance out. Seems that now that China is getting a taste of the good life with their enhanced GDP, they run the risk of losing their own export base. Their own investment in their manufactoring sectors is starting to increase their operating expenses. As a result, some US companies are moving operations out of China to another place that hasn't invested in R&D but has a good source of cheap labor. American companies just keep moving on to the next country to exploit. Soon, manufacturing towns in China will look like Detroit. I doubt that will ever cure the trade deficit.

I doubt you have ever been replaced in your career by outsourcing or an immigrant with an H1B Visa. I am amazed that you think an economy could continue to function without an employed middle-class. Forcing an entire class of people into unemployment by closing factories will stop the circle. I am curious to know how much you understand about Keynesian economics. The whole concept is what has kept this country from having another depression.
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