Combine this with our high corporate taxes and people actually wonder why companies move overseas and people are out of work?
Sometimes by favoring a narrow constituency, the federal government can cause economic devastation for a company or a state and even encourage companies to manufacture outside the United States. In terms of sheer economic stupidity, the Obama Administration committed an economic felony when the National Labor Relations Board (NLRB) ordered Boeing to shutter a spanking new $2 billion facility that would have created 1,000 much-needed new jobs in South Carolina.
Last week, the NLRB told Boeing that it could not open the facility it had spent three years creating to build its new Dreamliner series of airplanes. The NLRB did not deem the plant unsafe or harmful to South Carolina workers. The NLRB simply said that it could block Boeing from using the new plant as Boeing’s decision to locate it in South Carolina was in part based on a desire to avoid work stoppages and strikes, and this rationale was harmful to unions and thus an illegal act.
Never before has the federal government told a company it may not relocate within the United States. Never before has the statute used been interpreted to affect a decision on where a product is made. Never before has the Constitutional goal of easing interstate commerce been so trampled by a formal act of the federal government.
Why was this done?
The International Association of Machinists and Aerospace Workers asserts that during a 2008 strike at Boeing’s factory in Seattle, company executives threatened they would open their next assembly line in a right-to-work state in retaliation for workers walking off the job.
This despite the point made in the first article that Boeing can’t make enough of the planes at their Seattle factory, so they had to add a plant somewhere else. This couldn’t possibly be related to elections next year, could it?
High corporate taxes, like with GE amirite?
If the NLRB believes so strongly in union labor rights, they should concentrate their efforts on lobbying the SC legislature to eliminate the right-to-work law.
And who decided that the NLRB should have the power to stop a plant from opening in the first place? No workers rights are being violated here that I can see.
It is in the very root of damned Progressivism to control everything: Government, people, industry,… Even existing supporters must be awakened by this or be enslaved. Progressive = slave owner.
This is some shortsighted thinking that isn’t going to do anything good for unions.
Causing a company to eat $2 billion doesn’t spur job creation, nor goodwill. And certainly isn’t an act that will encourage manufacturing in the US.
It isn’t good for private sector unions either.
Expect this to get slapped down as an absurd extension of authority by the courts.
Just taking the story as reported, the NLRB quite rightly is denying an illegal retaliation by Boeing against union activity. Just the way they should. Capital is very fluid and fungible which is why its near absolute power must be balanced. Obviously, Boeing is “on the record” with its threats. Just had its own way for so long they could threaten illegal action and get away with it.
Now if the same balls could be shown by Financial Regulators. I ain’t holding my breath.
This is right out of Atlas Shrugged. Laugh if you want, the federal government is stopping companies from moving to another location to be profitable?
The only thing left (must pay this, must work here, …) is stopping companies from firing or laying off people to keep the unemployment rate down.
Why don’t they just nationalize the damned thing and drive the last nail in the coffin!
Why don’t they just nationalize the damned thing and drive the last nail in the coffin!
Funny you should mention that.
The way things are going now is the OPPOSITE of nationalization, i.e. the corporations are taking over the government.
#8, If that were the case, the tax rate would be the same as it is everywhere else. Half.
The tighter you squeeze, the more that will slip through your fingers.
Heard that somewhere . . .
High corporate tax rates? Are YOU high? Geez!
As far as the NLRB, they did exactly the right thing. They followed the law.
As far as unions, I have no idea why on earth anyone who works for a living hates unions. We don’t need fewer unions. We need more.
Umm “high corporate tax rates”? The airline industry gets HUGE subsidies and get away with paying much less taxes than required.
Pedro–your post #11 is just like most of your other posts. Made up BS that doesn’t make any sense.
I could care less about Gitmo but the argument against it is one I agree with: camps cannot be set up on otherwise foreign soil that is completely controlled by the USA and not have the activities there under the jurisdiction of US Judicial and Congressional review==or do you actually think (cough!) otherwise?
Osama is about killing someone who was resisting arrest. No one is against that.
Silly pedro. You know, just because your donkey doesn’t answer you back doesn’t mean you are right in what you say?
Ha, ha.
#10, http://tinyurl.com/3u2k8m5
Read it and weep.
“combine this with our high corporate taxes”
HA! High compared to what? Other countries that should be charging more taxes too or compared to grandma who paid less than GE?
Make the rich pay! Make big corporations pay!
Not a bright move. They seem to want Boeing to setup a facility outside the US where labour rates might be lower and the extra employment welcomed.
Protectionism rarely works for long as the EU is now learning.
Boeing should just proceed with the SC plant as if nothing has happened. Who is going to stop them? Not South Carolina.
Will the NLRB get a federal court order to stop Boeing? And then what, send federal troops to South Carolina to enforce it? That will go over well in the South.
A few years ago, Boeing moved their headquarters from Seattle to Chicago. Will the NLRB order them to move it back?
This is nothing. How about the $4 billion investment Shell Oil made to drill off the Alaskan coast. The entire project was scrapped because a 4-person board, comprised of environmental activists, revoked Shell’s air permit.
And what reason did the panel use for revoking the permit? Shell didn’t considered the impact the emissions from an ice breaker (if needed) would have on an Eskimo community 70 miles away.
#17, Considering Boeing’s money is all tied up in Federal Reserve Notes (not real money), the government can just cut them off by freezing their accounts.
I’m all for libertarian ideals, But
The Fed’s just funded Boeing 2.9 Billion for the P-8 Project. If you want to live the life of Ayn Rand, maybe you should first start by taking the Federal Tit out of your mouth.
#20, So because the government is their largest customer, they have the right to tell them how to do business?
Maybe they should nationalize it after all. Then they could do everything for free. They would be the owner and the customer.
#23.
Too late. We are already heading into the greatest depression.
With China selling it’s US treasuries, with the US treasuries loosing their AAA rating, and Japan being unable to buy more of our debt…
Who are we going to run to when we cannot balance the budget?
And this is even bleaker.
http://theeconomiccollapseblog.com/archives/it-is-now-mathematically-impossible-to-pay-off-the-u-s-national-debt
Does the idiot who posted this realize our tax dollars go to Boeing? Corporate taxes… har.
#25 – even better, not only does Boeing (like most large corporations) pay no tax. But South Carolina is kicking in $900M in incentives, grants, tax-breaks, infrastructure and benefits for Boeing to build the plant there.
Even if Boeing never build a single plane at this plant they are ahead.
Boeing has plenty of space in Washington, they are demolishing their original aircraft factory where they built B-29s. So the move was punitive !!!
You’re right, taxed enough.
Unfortunatley, I am skeptical that we can get out of this mess before a total collapse of our economic system.
Look at the name calling the adosesent Dems were calling the Repubs when they tried to cut $60 billion a year. The final cut was considerably less and that was hard fought.
Now think that we need to cut $600 Billion a year to even approach the overspending problem. 10X MORE.
Does anyone really believe this is going to happen??
Go ahead, Boeing, make your planes in Communist China. See if they stay in the air without crashing.
So Boeing spun off Spirit AreoSystems (the former Boeing Military Airplane Company) located in Wichita Kansas, a right to work state. They go to South Carolina after a fat bribe. Why didn’t they just go to the Wichita Plant? The Machinists will just organize in SC like they did in KS. Mean while the Kansas Governor said a few days ago he was going after more Boeing work for Wichita. I guess that means that all of the lottery money is going to Boeing for the next few years. (in Kansas the lottery money goes to business development a.k.a. bribes to locate in the state)
pben, Manhattan, Kansas
I remember when this blog was interesting. Now, unattributed articles and troll-baiting. Enjoy deluding each other. Bye.
How does a government agency direct a private company from opening a business? Better to have non union workers in the US then no workers in the US.
Yes, Taxed Enough.
The conclusion is inevitable. The economy will collapse. Specifically here in the US and reverberate throughout the world.
What will happen to the Chinese and Japanese economies if the US fails? They will also be brought into a severe depression rivaling the aftermath of WWII.
In China specifically, there will be mass mayhem. It will devastate their economy, which the Communist government needs to expand to keep the workers docile.
And what of the economies which have become addicted to China’s cheap labor?
Japan will fare a little better, but not much. They have a slightly more robust internal market, but their economy will hemorrhage badly.
Europe will falter, then be brought to it’s knees.
Arabia will succumb next. Their economy is based on selling oil, and with less demand, what will they do?
Anyone with a pulse and an IQ can see this coming. Unfortunately many posters here at DU seem to be missing the latter.
So what can we as individuals do to come out of this impending collapse in one piece??