Friday, February 23, 2024

It's Not the "Cost of Labor"

 Most Libertarians justify moving industry out of the USA by screeching about the "cost of labor," pointing their gnarly, Scrooge-like fingers at 'Da Unions' and stopping there.

We've argued again and again that in a well-run manufacturing business, the cost of direct labor (plant floor people) is usually about 5% of the total cost of the good being made.  (Yes, there are exceptions, and yes, there are poorly-run businesses, too.)

Anyhow.

It seems that Bai-Den has new "Green" regulations in mind which will--predictably--force more manufacturers to leave the USA.  In the course of arguing against said regs, the NAM gives us this factoid:

“The costs of federal regulations fall heaviest on the smallest manufacturers, which shoulder an average of $50,000 per employee in regulatory burden....

When most people think of "manufacturing," they think of Ford, Dow Chemical, Boeing, or GM, or perhaps the Big Smokestack Outfit in their hometown.  But those guys are literally the tip of the iceberg; there are ~250,000 manufacturing firms in the US.  Most are the little guys now being targeted by Bai-Den.


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