{"id":38428,"date":"2020-03-20T13:36:16","date_gmt":"2020-03-20T17:36:16","guid":{"rendered":"http:\/\/www.rightwinggranny.com\/?p=38428"},"modified":"2020-03-20T13:36:16","modified_gmt":"2020-03-20T17:36:16","slug":"some-thoughts-on-one-long-term-effect-of-the-coronavirus","status":"publish","type":"post","link":"https:\/\/www.rightwinggranny.com\/?p=38428","title":{"rendered":"Some Thoughts On One Long-Term Effect Of The Coronavirus"},"content":{"rendered":"

On March 1, Forbes Magazine<\/a> posted an article about the long-term impact of the coronavirus. Obviously the article was written before America went on lockdown and the stock market felt the full impact of the epidemic.<\/p>\n

The article reports:<\/p>\n

The new coronavirus Covid-19 will end up being the final curtain on China\u2019s nearly 30 year role as the world\u2019s leading manufacturer.<\/strong><\/p>\n

\u201cUsing China as a hub…that model died this week, I think,\u201d says Vladimir Signorelli, head of Bretton Woods Research, a macro investment research firm.<\/strong><\/p>\n

China\u2019s economy is getting hit much harder by the coronavirus outbreak than markets currently recognize. Wall Street appeared to be the last to realize this last week. The S&P 500 fell over 8%, the worst performing market of all the big coronavirus infected nations. Even Italy, which has over a thousand cases now, did better last week than the U.S.<\/strong><\/p>\n

So who wins as China loses its place as the world’s leading manufacturer?<\/p>\n

The article notes:<\/p>\n

Yes. It is Mexico\u2019s turn.<\/p>\n

Mexico and the U.S. get a long. They are neighbors. Their president Andres Manuel Lopez Obrador wants to oversee a blue collar boom in his country. Trump would like to see that too, especially if it means less Central Americans coming into the U.S. and depressing wages for American blue collar workers.<\/strong><\/p>\n

According to 160 executives who participated in Foley & Lardner LLP\u2019s 2020 International Trade and Trends in Mexico survey<\/a>, released on February 25, respondents from the manufacturing, automotive and technology sectors said they intended to move business to Mexico from other countries \u2013 and they plan on doing so within the next one to five years.<\/strong><\/p>\n

\u201cOur survey shows that a large majority of executives are moving or have moved portions of their operations from another country to Mexico,\u201d says Christopher Swift, Foley partner and litigator in the firm\u2019s Government Enforcement Defense & Investigations Practice.<\/strong><\/p>\n

Swift says the move is due to the trade war and the passing of the USMCA.<\/strong><\/p>\n

The article points out one of the major problems with manufacturing in Mexico:<\/p>\n

Safety remains a top issue for foreign businesses in Mexico who have to worry about kidnappings, drug cartels, and personal protection rackets. If Mexico was half as safe as China, it would be a boon for the economy. If it was as safe<\/em>, Mexico would be the best country in Latin America.<\/strong><\/p>\n

\u201cThe repercussions of the trade war are already being felt in Mexico,\u201d says Miralles.<\/strong><\/p>\n

Mexico replaced China as the U.S. leading trading partner. China overtook Mexico only for a short while.<\/strong><\/p>\n

A strong Mexican economy would solve a lot of problems for America if the drug cartels and other illegal activities could be stopped. A strong Mexican economy would provide incentive for migrants from poorer South American countries to remain there and work. It might ebb the flow of illegals into America that burden the American welfare system and negatively impact the wages of Americans on the lower end of the wage scale.<\/p>\n

There will always be drawbacks to outsourcing manufacturing to a country that is controlled by a group of tyrants. American companies who scream about civil rights in America have been willing to overlook sweatshops in China. It is time to add the concept of conscience to the corporate decision-making process.<\/p>\n

\n","protected":false},"excerpt":{"rendered":"

On March 1, Forbes Magazine posted an article about the long-term impact of the coronavirus. Obviously the article was written before America went on lockdown and the stock market felt the full impact of the epidemic. The article reports: The … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[7850,12161,253,12501,7430,350,10439,11381,2710,418,11196,12034,11188,737],"class_list":["post-38428","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-america","tag-cartels","tag-china","tag-coronavirus","tag-foley-lardner","tag-forbes","tag-forbes-magazine","tag-international-trade","tag-manufacturing","tag-mexico","tag-stock-market","tag-usmca","tag-wages","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/38428","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=38428"}],"version-history":[{"count":1,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/38428\/revisions"}],"predecessor-version":[{"id":38429,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/38428\/revisions\/38429"}],"wp:attachment":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=38428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=38428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=38428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}