Monday, October 02, 2006

US Productivity Down

Sure the U.S. has a low tax regime in place for its manufacturing businesses. Lots of tax credits too at the municipal and state level, corporate welfare. Still their productivity is down. And why is that you ask. Because unlike Canada, the State does not pay for benefits.

U.S. manufacturers have become less competitive in the global marketplace in recent years because of rising energy and other "structural" costs, according to a report issued Sept. 27 by the National Association of Manufacturers (NAM). The study by economist Jeremy A. Leonard of the Manufacturers Alliance concludes that nonproduction costs for U.S. manufacturers are 32% higher than those of nine of the nation's major economic competitors—Britain, Canada, China, France, Germany, Japan, Mexico, South Korea, and Taiwan. Domestic manufacturers faced a 22% disadvantage in 2003, the last time NAM studied structural costs, which include corporate taxes, employee health and pension benefits, and legal expenses.

Whereas in Canada with our public healthcare, public pensions, public education, public post secondary education, etc. we have a benefit advantage. Think if we had a real universal childcare program and a real pharmacare program what a business advantage that would be.

Our productivity is of course up this year again.

So why would we want to integrate with a basket case economy like the U.S.?



Basket Case Economy

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