
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?