Wednesday, February 15, 2012

While it would be good if companies brought jobs home from overseas, Obama has no clue as to how to help make that happen... which means that, like so many of his other initiatives, nothing will come of this...

Companies will bring jobs home only if they think there's a financial benefit of doing so. It's why the jobs were outsourced in the first place, companies figured it was cheaper to hire someone somewhere else than it was to hire someone here in the US.

So what, if anything, will lead a company to conclude that it is now cheaper to have the worker here in the US?

Obama wants to offer some mix of tax incentives... but they're unlikely to be enough to persuade any company to go through the expense of moving operations. At best, such incentives would be pennies to the dollars that companies currently save by having workers somewhere else.

If Obama were serious about this (which he isn't, he is merely going through the motions in hopes of convincing enough people that he ought to be re-elected), he would focus on the issues that comprise the biggest differences in costs between a US-based worker and someone based elsewhere.

Health care costs. Litigation risk. Cost of complying with regulations.

Those are just some of the big dollar differences. And note that Obama addresses not a single one.