Thursday, February 16, 2017

Moving to Mexico-2

But even if you job is highly automated, you can’t beat four dollars a day in Mexico even with all the infrastructure remains the same. Despite a much diversified economy, the U.S. is still one of the most expensive places to do business and it all relates to the regulation and taxes that are imposed on the business. Now with all the automation going on, I am worried that the low skilled people will be in dire straits despite the attempts by some to increase their wages to fifteen dollars an hour which is to me highly ridiculous. As I have said before, I have seen jobs which require bachelor degrees advertising fifteen dollars an hour. If you are going to offer minimum wages at fifteen, the people who had been there before and are at fifteen and above will demand more and this will ripple through all the departments in the organization. But back to Mexico and despite what the President says, the businesses will make decision based on what is good for the company and their shareholders, the only game changer will be if the same goods exported from Mexico costs the same as if it were made in the U.S. Until this happens, business will keep on moving their production to Mexico but also keep on keep some jobs in the U.S. to make sure there is minimal protest of people losing jobs in the U.S.

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