My news flash blog from yesterday spawned an interesting debate in the comments about what I think could be one of devastating effects of a Barack Obama Presidency. Obama’s comments about taxation, regulation, and the environment lead me to believe that if he is elected President it could have a devastating impact on industry and cities like Erie.I wanted to move that debate front and center today so I have moved the original news flash and the comments that follow to this entry for your perusal and comment.
The original flash-
While pitching his message to Oregon's environmentally-conscious voters on Sunday, Senator Barack Obama called on the United States to "lead by example" on global warming, and develop new technologies at home which could be exported to developing countries.
"We can't drive our SUVs and eat as much as we want and keep our homes on 72 degrees at all times ... and then just expect that other countries are going to say OK," Obama said. "That's not leadership. That's not going to happen."
What? This is what Obama is passing off as leadership? Leadership to what? Leading us back to the stone ages? Here’s a news flash for Obama: we are the economic engine of the world! We lead the way in innovation, technological advancement, and development, for now. If you have your way and tax the living hell out of us, all of this real leadership will come to a screeching halt.
While Obama is out preaching to the uninformed masses and being lapped up like a plate of chicken and biscuits, for his populist clap trap, the businesses that are the economic engine of this country are keeping a watchful eye on his plans and planning their alternatives to doing business in the United States. And don’t kid yourself that that can’t or won’t happen.
GE can just as easily make their next generation locomotives in Bangalore as they can in Lawrence Park.
The comments that followed and my replies:
Anonymous said...
Yes, GE could build their locomotives overseas, but don't bet on them doing so. It costs about $1 million PER locomotive to ship them overseas, and with the majority of GE's orders being from domestic railroads, mostly for 100-200 locomotives each, that's a HUGE price tag.
Full Frontal Lucidity said...
Last I heard they were building around 700 locomotives per year...so 100-200 is far from the bulk of their orders...the foreign market has continued to grow...they can tack the cost of shipping on the cost of the finished product just like they do now...hardly an impediment to them moving overseas...and with the cost savings on labor...that million bucks suddenly shrinks pretty dramatically.
Anonymous said...
How anyone could possibly consider Barack Obama and his hatred filled wife to lead our country and outlaw the American way of life is mind boggling.
Anonymous said...
Not what I said. I said that each order is generally for 100 to 200 locomotives per order. Last year they produced 970 locomotives.There is a competitor, EMD, based in Canada. Don't bet on GE moving overseas anytime soon; their price per locomotive is cheaper than EMD right now, but if they move, that will no longer be the case and I guarantee you that the railroads will look to EMD, and not GE. Also of note, GE already has plants overseas that can build locomotives, such as one in Kazakhstan but they don't choose to build all of them there because of the expense.
Full Frontal Lucidity said...
Don't think they are able to build the entire package at the Kazakhstan plant...they can build part of the finished product...like John Dineen stated recently, "I'd rather have 50 or 75 percent (of the locomotive) built here, than nothing at all."
Don't bet on GE not looking to overseas if they can't remain competitive on price due to Obama's tax and regulate policies...as I've written here many times, corporations DO NOT PAY TAXES...there customers do.
If it becomes cost prohibitive to pass along those increases, then GE will look for a way to keep costs down and look to a more business friendly climate...lower taxes, cheaper workforce, less regulation...which was my original point.
The impact this possibility would have on this community would be staggering! It's not just the 5500 who work a GE, it's everybody who supplies GE and everybody that all of those folks do business with...the trickle down would make a Tsunami look like a walk in the park...
Is that the CHANGE Obama keeps yapping about? His potential slaughter of small industrial town like Erie? All you Union types may want to think twice before casting a vote for this clown.
I do not think that this is by any means a forgone conclusion, but I think an Obama Presidency would certainly enhance that possibility. What’s your take?
8 comments:
i don't think you're lucid at all.
you sound like a lunatic.
would you rather bush and mcsame and have 4100+ dead AMERICANS in iraq or would you rather make a multinational company like ge compete globally?
So chasing 5500 great jobs and all of the jobs at GE suppliers now passes for competing globally? Who's the loon.
As to your silly question...as much as I disagree with President Bush's reckless spending and cozying up to illegal immigrants...to use the liberal talking point of the day...I'd take McCain as a "third Bush term"...over Obama...which would equate to a second Jimmy Carter term! Energy shortages, double digit inflation, double digit mortgage rates, double digit unemployment, and a totally clueless foreign policy...all hallmarks of the Carter/Obama administration.
"....Energy shortages, double digit inflation, double digit mortgage rates, double digit unemployment, and a totally clueless foreign policy...
add to that double digit mortgage foreclosures too.
we have all that now after 8 years of bush. do you read the papers or watch any news, other than "fair & balanced fox"?????
Speaking of reading...try a history book...the double digit stuff was the Carter years...I won't resort to the name calling you lib types seem so fond of...yes gas is nearing four bucks a gallon, but you can get all you want...unlike the Carter years when you had rationing and lines at the pump. Last I checked unemployment was around 5 percent and mortgages about 6 percent. As to the cluless foreign policy...Carter was the one who's inept policy on the middle east that spawned Islamic terrorism that came home to roost on 9/11.
Again...you and your rude liberal friend who can't seem to control themselves so I won't post his comment...need to stop being blinded by your hatred of GW Bush and face reality.
FFL-Whoever you are, you have more common sense in your little finger than 95% of your libtard Erie readership. Enjoy your moment in the right wing lime light because you won't last long on the Erie Blogs. These morons are clueless.
I personally would love to see GE pull out just to hear these idiots whine. The first thing out of their mouth would be..."how could they do this to us...we're irreplaceable because we're from Erie."
Barack Obama will destroy this country. He is nothing more than a darker version of Jimmy "the Jew hater" Carter. Most of the readers are too young to remember Carter but the world problems today are a direct result of Carter's stupidity and Liberal mindset.
How exactly do we make the leap of logic to say that GE would close due to a new president being in place?
Perhaps you can expound on the connection between driving SUV's and turning down the thermostat to that of a manufacturing plant.
Care to flesh that out a bit?
We're no longer the "economic engine of the world" my friend. That baton was passed years ago.
Reading is fundemental...I never said it was a forgone conclusion...in fact I pointed that out.
I have a difficult time taking you seriously as a commenter, when you think that the U.S. is no longer the economic engine of the world...seriously...you need to read more. Currently we still lead the way in manufacturing and R&D, but it's slipping away...quickly and the bigger government preachings of Obama are more bad news.
There are a number of critical things that are killing industry in the U.S. What people in business label as structural costs...taxation, regulation, litigation, workforce costs, etc.
When you have a President who has professed a desire to raise taxes dramatically, introduce new regulation (global warming) and force universal healthcare at an increase cost to business...then gee it only makes sense that if a company can do business cheaper elsewhere, that they may take that option.
We know that GE can build locomotives in other places already...so how much of a leap is it to say that the potential exists for them to leave if they get the business push through those higher taxes, greater regulation and on and on.
They already are engineering new advancements on a 24/7 global scale in places like India, so I don't see this as a huge leap.
I suggest Tom Friedman's The World Is Flat, it's an education in the global economy...he's a card carrying liberal so maybe you'll trust him more than me.
FFL,
Love your blog site.
Let me first say, Global Warming...Anyone in Erie the past couple of days would say, WHAT GLOBAL warming.
Oh and for the record, I am all for Global warming. I think it's pretty awesome. I also think humans have little to do with it. I also think that mother nature will take care of herself.
Second. If the planets around us are rising in temperature then I think it's safe to say that Earth's rising temp. isn't related to Earthlings.
Now, I like to think I am partial and unbiased.
I have the following...An 05 Dodge Powerwagon which gets about 11 mpg, 2 go-carts I like to race, a sports car I like to drive, a motorcycle I like to ride, a riding lawn mower that I cut approx 4 acres of grass. I use alot of gas. The price of gas is high, but I still have to pay the piper....
I also have a gas well so I have free heating gas. I keep my thermostat as high as I want.
My heat is the same as my water well. I use as much as I want knowing at anytime, my well can go dry...
Now, I think conservation is awesome. I don't think waste is necessary. at the same time I don't have a problem throwing food away.
Each year more people use more electricity and yes, turn out a light if you are not in that room but the US still needs to build more power plants. I think it's good that the US is strict on Environmental issues. But being afraid of Nuclear Power or a Tire Plant in Erie is the same thinking that has let Erie become so depressed economically.
I have 10 acres and 4 acres are woods. I love my woods and I love riding my 4 wheeler in the woods just as much as I love walking in my woods.
I like to think I am pretty balanced and level headed.
So far I am not for or against any canidate. I think McCain if he runs HIS own campaign can make really positive changes. But I think he needs to seperate himself from being a 3rd bush. I think whomever the Democratic candidate is will be riding the wave of "It's the democrates year"
I think if you got yourself into a mortgage problem, then you are to blame.
If you don't have a job. MOVE.
I am not a fan of government, let alone BIG "Brother" Government.
I admit health care is expensive but I don't think it's the Governments responsibility to make sure that the individual has it.
I think there should be consequences for ones actions, otherwise; you can be like EX-President Clinton (impeached) and lie under oath. He had the Highest office in the US and lied under oath. That in itself says Lie, it doesn't matter.
So far I am not impressed with Obama, and unfortunately, I think he will self destruct.
As for Clinton. The fact that she is still married to a cheating lier that was impeached says she likes being lied to and cheated. Makes me wonder if she thinks it's ok because she herself is a lier and a cheater.
TOPCAT
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