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Bend over and let me drive

By Owen Paine on Saturday June 11, 2011 07:08 PM

The belower wage strategy to re-industrialize Norte Amigo takes another hit:

"The union tried everything. Wage cuts that dropped pay to $12 an hour. Higher health insurance costs. Letting the company bring in an automated assembly line and a “lean manufacturing” program that pumped out product 98 percent on time...But none of it was good enough...Management has already started shipping presses to a new facility in Monterrey, Mexico...the union estimates labor cost per unit for the fluorescent-light fixtures is $3 in Tennessee and $1 in Mexico."
So hey, let's set the peso/dollar rate accordingly. Err, that would destroy millions of marginal Mexican farms, of course, and make the landless farmer outlet -- jobs north of the Rio G -- three times less attractive.

Straight forex fixes are an answer only good for nasty Yankee weasel heads. We need a system of border adjustments optimal for each, according to the market impact involved -- i.e., planned cross border markets. Not gonna happen. So?

Well, occupy the plant in Tennessee before all them "presses" are gone to cactusland. That bull-headed approach comes to mind as a start. Then again, to get a systemic change, we need to freeze by units industrial imports. That we can do -- if a global trade war is within the purview of the plausible.

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