Cute post...

There is a little concept in economics, called "comparative advantage".  It is the reason why we have digital clocks, instant coffee, electricity (and the razors to go with it), designer jeans, affordable tennis shoes, new electric skillets, calculators (and something to calculate) watches that tell much more than just the time, well built foreign cars, top of the line computers, time to relax in comfortable sandals and drink wine on demand. 

All the while, the people in so many other countries can only dream of our opulent lifestyle. 

If anyone thinks we're poor here, try visiting overseas, where real poverty exist.  It's quite sobering.

MP

http://www.thefreemanonline...

Excellent comment, middlepath - I couldn't agree more.

At least the majority of US citizens still receive some sort of aid, whether it's unemployment assistance or disability, etc.  Go to the third world and one would be lucky to even own more than a couple of sets of clothing, much less anything else mentioned by tkozy.

Middle and FSG


The story isn’t about wealth.
Somewhere in that story is a guy trying to find America. And it is nowhere to be found.

More important than wealth in the blog I posted. There was a man trying to find American pride. Nationality. Patriotism.  

In fact. Among industrialized nations. We are soon falling into third world status.

Somewhere in that story is a guy trying to find America. And it is nowhere to be found.

Maybe he should check his condom, courtesy of the US Goverment and the 1 trillion dollar stimulus.  Kinda hard (no pun intended) to have any pride and patriotism in your govenment when they insist on buying condoms for ya......So much for yes we can....

With states like CA being hostile to business is it any wonder that companies outsource. (I stole that from son while discussing corporate tax rates.)

Ireland has been brought up numerous times as an example of people flocking to set up businesses there.  I mentioned a 37% corporate tax rate and later heard on the radio that it was 35%.  Ooops..I slipped up and accused our government falsely.  I ask, in all innocence and wonder, if our corporate tax rate is 35% how much more does the government want?  When businesses fail (as they have been right and left) we all pay for it and yet, the government want more blood from them?

Are Mervyns, Circuit City, Linen's n Things, and other non auto, non oil, non banking companies going to get some bailout money?  Darn, it's too late, they already folded.   A country that is a little more business friendly might not find itself in the vast pot of boiling water that we're in now.

But no, we must tax tax tax anyone who made enough money to keep their employees on the payroll.  That's because they're filthy rich you know..and we can't have that.  We need to be more like the old Russia where everyone pooled what that had and it was divided up among all ...well, sort of anyway.

I'm no economist, and granted I don't understand the intricacies and "nuances" but I have a smidgen of common sense and logic and I don't need a degree in economics to see that when businesses fail we lose jobs and when we lose jobs people go on unemployment or the dole and when that happens we continue the spiral downward.  Like dominoes.

Sorry to hi-jack TK, I actually do understand your point with the post above.  I think we may disagree (what's new) but I understand it.

I vent, I digress, I waste my time.

tkozy - from the way you speak, it seems to me you aren't so sure what third world is. 

As far as finding America - America is a melting pot, and has been since it's inception.  I see plenty of good still in our country - diversity and acceptance.

Nancy, California isn't hostile to business. That's a myth that's long been perpetuated by the business lobby (i.e., GOP) in the Golden State. Unfortunately for them, the evidence doesn't justify the claim. Unfortunately for us, myths have a long life.

http://www.californiaprogre...

http://www.sfgate.com/cgi-b...

I know, I know...these are from that dang librul media...but truth, as you may know, frequently has a liberal bias.

Also, fully 60 percent of American businesses pay no corporate income tax. So...in practical terms...does it really matter what the rate is?

I suppose it does to the GOP, which likes to trot out that many Americans on the lower income scale don't pay income taxes...but neglect to mention that little Chamber of Commerce fact.

CA isn't hostile to business?  I guess that's why Freymiller et al pulled up stakes and moved out of state.

Freymiller Went bankrupt Less than a year after leaving Bakersfield for Oklahoma. 

They found out the truth about the California tax myth.

OKLAHOMA CITY--(BUSINESS WIRE)--April 20, 1995--Freymiller Trucking Inc. (NASDAQ:FRML) Thursday reported revenues of $95,152,000 for the year ended Dec. 31, 1994, and a net loss of $5,167,000, or $2.08 per share, compared with revenues of $100,557,000 and a net loss of $5,503,000, or $2.21 per share,


for the prior year, which includes a cumulative effect of accounting changes of $542,000, or 22 cents per share. The decrease in revenues reflects lower equipment utilization due to the disruption caused by the company's headquarters' move to Oklahoma City from California, and the effects of an industry-wide driver shortage.
The loss was compounded by a $2,538,000 valuation allowance that was established against the company's deferred income tax benefit as of Dec. 31, 1994. The valuation allowance was necessary to reflect a conservative posture with respect to the company's ability to forcast sufficient future taxable income to fully utilize the deferred income tax benefit asset.
Discussions with regard to Freymiller Trucking's financial situation resulted in the resignation of four of the five members of its board of directors. Don Freymiller remains as the sole director of the company.
explored many alternatives to improve its financial condition, but finally concluded that the only realistic alternative available to protect the going-concern value of the company was for Freymiller Trucking to file for protection under Chapter 11 of the U.S. Bankruptcy Code on April 20, 1995.
Freymiller, chairman and chief executive officer of Freymiller Trucking, stated: ``The headquarters' move proved to be more difficult and costly than originally anticipated, resulting in a disappointing year for the company. Once the move was completed during the fourth quarter, we took advantage of the situation by restructuring the company and substantially upgrading our operations and sales teams with more experienced management personnel.
``Our decision to file for Chapter 11 protection was the most difficult one we have ever had to make. With the move behind us and the internal changes already in progress since early 1995, we have established a solid foundation for rebuilding Freymiller Trucking.
``We continue to be encouraged by the progressive realization of the anticipated economic benefits of the move. We intend to come out of the Chapter 11  proceedings as a much strengthened company.''
Freymiller Trucking is one of the largest temperature-controlled truckload carriers in the United States, specializing in the transportation of temperature-controlled shipments and time-sensitive freight to all 48 contiguous states as well as Canada and Mexico. -0-

From:
http://www.allbusiness.com/...

In February of 1996, Freymiller Trucking, Inc. was sold. In August of 1996, the Freymiller family made the decision to start a new trucking company under the name of D & M Carriers, Inc. In 1999, the Freymiller family was officially able to market the Freymiller name again. Thus, Freymiller, Inc. was born. The same family providing the same integrity and quality service that the transportation industry has known since 1968.

From:

http://www.freymiller.com/F...

Thank you for the history of the company but what does that have to do with the reason they left?  Whether it was a financial mistake or not is irrevelant.  At that time there were a series of stories about the companies (oil included) who left the area.

That's all very interesting, but the topic of the original post was about jobs leaving the country. 

Here she goes with her stone age economics again, but I believe that we should meet as many of our essential needs as close to home as possible.  :)

Nancy,

Freymiller left because of the same voodoo economics that you're trying to sell on this blog.  Freymillers problem was greed and the inability to manage a company. It had nothing to do with taxes or how friendly California was .

The same voodoo economics brings many companies to leave the U.S.  People just don't understand that when the good jobs leave America. So do the eligible people who buy their products and homes.  When you drive down the value of the American working man. You drive down the value of America. You diminish pride.

That's what John is looking for in the post above.  American PRIDE.

FSG,

I can take you to 3rd world conditions right here in Bakersfield.

Just a few short years ago we suffered without electricity. Unheard of in modern industrialized nations.

We will suffer with out water in many area's this summer.

American's go without medical care. Unheard of in modern industrialized nations.

Yes, we suffer the same fate as the 3rd world in many respects. Right here in River City.