Small, rural areas losing jobs; outsourcing to other nations as well

[Lik3]

I have wondered this a few days ago when talking to one of my relatives. It was about companies who send much of their business overseas or at least close down some of their stores here, but not some in the bigger cities.

I live a small town, where the population is no more than between 4,500 and 6,000 people. Many here have lost jobs due not just to companies outsourcing but also due to the fact that many of these companies do not "close up shop" in places where the clientele may be more suburban or even urban. It is as if the least valued US consumer is the consumer who lives in a small town or a town where much of the population is poor.

Also, if the company is about making profits in another country or even a larger city, then I find it odd how they treat their employees in say in a small, poorer nation, as compared to say, where I am from, or even a large American city. Why is it that those in foreign countries get paid so little? I often see on the news or read about the average foreign worker making about as much per day as an American worker per hour. Why is that?

Are our laws about workers are treated different from other countries and that is why outsourcing a win-win situation for those (amoral in my opinion) business owners who are worth more than millionaires, yet pay most foreign workers such little wages? How about say, for the average American worker, in a small rural town, where I am from? Part of that is why unemployment is higher than in other areas.

Are there any other issues that come into play like the basic standard of living and the impact of outsourcing and moving companies to larger US markets or to overseas? How much does the local, state, federal, and antitrust laws have to do with this? Would taxation have to do with this? I have wondered that for a long time and I am interesting in reading your thoughts and maybe corrections on this.

 

[Hank77]

I live a small town, where the population is no more than between 4,500 and 6,000 people. Many here have lost jobs due not just to companies outsourcing but also due to the fact that many of these companies do not "close up shop" in places where the clientele may be more suburban or even urban. It is as if the least valued US consumer is the consumer who lives in a small town or a town where much of the population is poor.

Can you give an example of company that was in a small rural area and closed but remained open somewhere else. It's really poor planning for a large company to move into an area with a very small population and especially a rural area where shipping to and from will cost them more.

 

[Lik3]

Okay. I myself live in a small, rural town, where there were a Bi-Lo not terribly far from where my house is. Within a matter of a couple of months or so, they were gone...again. I have noticed that there were larger cities where there were actual Bi-Lo's, Home Depot's, and Trader Joe's. We aren't a large population, but those companies could help greatly with the unemployment figures we have within our local area. Plus, not only would that help the company's bottom, it would provide a wealth of customers. Well, and that I don't live too far from other small town demographics, state borders, and coastal areas and universities.

 

[Hank77]

Okay. I myself live in a small, rural town, where there were a Bi-Lo not terribly far from where my house is. Within a matter of a couple of months or so, they were gone...again. I have noticed that there were larger cities where there were actual Bi-Lo's, Home Depot's, and Trader Joe's. We aren't a large population, but those companies could help greatly with the unemployment figures we have within our local area. Plus, not only would that help the company's bottom, it would provide a wealth of customers. Well, and that I don't live too far from other small town demographics, state borders, and coastal areas and universities.

I see that Bi-Lo is a grocery store. Do they have any competition in your town? How far is it to the next Bi-Lo?
With such a small population it's hard for a grocery to make a profit without raising their prices. They have regular overhead, employees, building maintenance, power bills, insurance, etc. but they also deal with fresh food product spoilage and out of date product.
In our little rural town with one grocery store the prices are very high, for some items it is 50% higher than in the much larger town that's 60 miles away. For instance a can of Libby's or Del Monte green beans is between .90-.99 cents a can. In our store the same brands and size can is $1.96.

Big box stores like Home Depot and fast food and restaraunts couldn't make a profit in such a small area. However, franchises such as Ace Hardware can usually make a go of it depending on what people in the area do for a living, such as ranching/farming and home construction/renovation.

 

[Lik3]

Interesting you mentioned that, Hank. Bi-Lo is indeed a grocery store. I am just upset about the unfairness of how smaller, rural communities are seen as mere commodities AS compared to say a larger area like the Cola, SC metropolitan area. (Cola is short for Columbia as the locals refer to is as. ) or even a coastal city like Myrtle Beach. Obviously I am from SC, and the unemployment rate where I am living was almost 18-20 %. While I realize it has gone down significantly having Bi-Lo close, twice, seems rather unfair. Businesses make profits, which is fair. Maybe I should blame the county for this since they are the ones responsible for the businesses arriving here, but since this is a county of small towns, what can they do?

I certainly need to brush up on my math and business administration skills. Maybe a lesson in taxation would also be in order for me as well. I guess I should be more thankful that we have plenty of smaller business as well as the Ace Hardwares here. I am old enough to remember we had a lot more places to shop, go to the movies, and where many of the older people would see famous people and just regular people with plenty of talent. Suffice to say, I guess we could move from here.

 

[Sparagmos]

Interesting you mentioned that, Hank. Bi-Lo is indeed a grocery store. I am just upset about the unfairness of how smaller, rural communities are seen as mere commodities AS compared to say a larger area like the Cola, SC metropolitan area. (Cola is short for Columbia as the locals refer to is as. ) or even a coastal city like Myrtle Beach. Obviously I am from SC, and the unemployment rate where I am living was almost 18-20 %. While I realize it has gone down significantly having Bi-Lo close, twice, seems rather unfair. Businesses make profits, which is fair. Maybe I should blame the county for this since they are the ones responsible for the businesses arriving here, but since this is a county of small towns, what can they do?

I certainly need to brush up on my math and business administration skills. Maybe a lesson in taxation would also be in order for me as well. I guess I should be more thankful that we have plenty of smaller business as well as the Ace Hardwares here. I am old enough to remember we had a lot more places to shop, go to the movies, and where many of the older people would see famous people and just regular people with plenty of talent. Suffice to say, I guess we could move from here.

You have every right to be disappointed and upset. Unfortunately, those businesses have one purpose - to make money, and they weren’t making enough money in your area. That is the simple math.

 

[dqhall]

I have wondered this a few days ago when talking to one of my relatives. It was about companies who send much of their business overseas or at least close down some of their stores here, but not some in the bigger cities.

I live a small town, where the population is no more than between 4,500 and 6,000 people. Many here have lost jobs due not just to companies outsourcing but also due to the fact that many of these companies do not "close up shop" in places where the clientele may be more suburban or even urban. It is as if the least valued US consumer is the consumer who lives in a small town or a town where much of the population is poor.

Also, if the company is about making profits in another country or even a larger city, then I find it odd how they treat their employees in say in a small, poorer nation, as compared to say, where I am from, or even a large American city. Why is it that those in foreign countries get paid so little? I often see on the news or read about the average foreign worker making about as much per day as an American worker per hour. Why is that?

Are our laws about workers are treated different from other countries and that is why outsourcing a win-win situation for those (amoral in my opinion) business owners who are worth more than millionaires, yet pay most foreign workers such little wages? How about say, for the average American worker, in a small rural town, where I am from? Part of that is why unemployment is higher than in other areas.

Are there any other issues that come into play like the basic standard of living and the impact of outsourcing and moving companies to larger US markets or to overseas? How much does the local, state, federal, and antitrust laws have to do with this? Would taxation have to do with this? I have wondered that for a long time and I am interesting in reading your thoughts and maybe corrections on this.

There are billions of unskilled laborers competing to do assembly work. The wages are low. It is easier to make babies than to raise highly educated children capable of high levels of productivity. Young people left small rural towns where there were no jobs to go to wealthier cities or suburbs. Some are going to the Permian Basin oilfield. It is an oil boom town. The pay is good. Some rural households had an over the road trucker as head of household.

 

[FireDragon76]

It's not just jobs going overseas but also automation putting money into fewer hands.

Also, America has relatively high corporate taxes compared to other countries. But the main thing is automation. If jobs come back, they wouldn't be employing that many people anyways.