Posted by: coastcontact | October 28, 2009

The Lowest Cost Means the Highest Net Income

The average hourly pay rate in the state of Washington is $22.32.  The average hourly pay rate in South Carolina is $17.33.  So Boeing Company has decided to build their new 787 Dreamliner in a North Charleston facility in that Southern state.  Of course there is also an incentive package by South Carolina that sealed the deal.

The lesson learned is that free enterprise always looks for ways to lower its cost of doing business.  The state of Washington does not own Boeing.  There is no pact that requires their allegiance to that state’s population.  Lockheed moved from Los Angeles to Atlanta.  Technicolor has moved its CD and DVD manufacturing facilities that was located in Virginia and California to Mexico.  Many companies have outsourced their manufacturing to other countries. 

Let me put this another way.  Stock holders are not interested in providing welfare.  They are interested in net profit.  This too is part of America Incorporated.  Any questions? 

Advertisements

Responses

  1. Washington State is no longer interested in providing welfare to greedy, ungrateful and self-serving corporations either. How about Boeing pony up and pay all the back taxes they’ve deferred over the years. And while we’re on the subject, stop flying customers out of WA airspace to sign the sales contracts, and pay the WA state taxes for planes made here?

  2. […] Link:  https://coastcontact.wordpress.com/2009/10/28/the-lowest-cost-means-the-highest-net-income/#comment-4… […]

  3. January 18, 2010

    In response to GFS:

    First, I do not understand why knowing my name will improve reader knowledge. Ham radio operators have “handles” too. I am not trying to hide.

    Second, the purpose of this entry was to explain how business works. I did not say I supported this behavior. If you take the time to read other entries in my blog you will realize I am a “bleeding heart liberal” on most social issues. I am also a fiscal moderate. I understand exactly why the government gave money to American auto manufacturers and banks. The consequence of not taking that action would have been even more devastating to the nation’s economy.

    Don Evans


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: