I recommend reading Marita Noon’s article at TownHall titled: Blame for Ford’s Mexico Move Falls On Obama Administration. In one brief read you’ll begin to understand the impact government over-regulation has on businesses and job creation/retention in our country.
If you don’t have time to read the article, the Obama administration, in their quest to save the world, have implemented aggressive CAFE (corporate average fuel economy) rules for automakers in the US. In order to meet these standards, auto manufacturers must build small, highly fuel efficient vehicles so that they meet the CAFE standard. However, several factors make these car models very low margin. So, in order to save money and increase margins, like any good business out to turn a profit, they look for cost cutting measures like moving production to low wage countries.
Folks, to say things like “Mexico is taking our jobs!” is short sighted. We need to ask, “Why are corporations taking their manufacturing elsewhere?” It’s not as simple as wages are lower someplace else, or “Mexico bad”. We have an incredibly burdensome regulatory state, powered by an ever increasing federal (and state) government bureaucratic class. From CAFE standards to licensing for hair braiders it all has an measurable effect on the economy. When our President and Congress address these issues, then some of these jobs will stay in America. But don’t hold your breath.