Use Govt. To Stop Race To Bottom

The Federal and State Governments should only agree to purchasing contracts with private companies that have not moved their factories or headquarters during the last three years.
The only exception to this is rule would be companies returning their factories to the U.S. from locations overseas.

Our government, (in its various forms) is a huge purchasers of products from manufactures who often move their production facilities and headquarters across state and national borders in order to essentially ‘earn’ money from tax breaks. To these companies the costs of building and training completely new work resources is dwarfed by the breaks and benefits offered by various locals, putting a large burden on the economies they move into – as well as the economies they leave.

When these companies realize a loss in sales, by moving elsewhere, will occur will any of them decide to stay put. Especially the Federal government needs to adopt this policy. Continuing to choose and honor contracts with companies that move often undermines the nation’s workforce and earning potential. It hurts the people, the states, and ultimately the federal government.

If the State governments begin with a memorandum agreement between states to forestall all contracts with companies who violate this rule.
Example:

All companies seeking to establish a contract for goods and/or services with the State of Ohio shall meet the requirement that said company, its headquarters, factories and/or center of major employment has not relocated across any state boundary (not necessarily Ohio’s) during the past three years.

If a company already under contract to provide goods and/or services to the State of Ohio does choose to move its headquarters, factories or center of major employment across any state border, or leaves the borders of the U.S. altogether, that contract shall be made null and a new contract will be sought with other businesses who may then compete to provide those same or similar goods or services to the State of Ohio.

I’ll bet a lot of factories stop moving pretty quick.

Leave a Reply

Your email address will not be published. Required fields are marked *