NEW TREND: “ONSHORING” TURNING U.S. INTO MAQUILA ECONOMY « Of América

“For many months now, I’ve been noticing several reports about domestic and foreign companies investing in the US because it’s as cheap as doing so in what used to be called the “third world”. Take this story in the LA Times about “onshoring”, a trend describing how U.S. & foreign firms are opening production facilities not just at the border, but in places like the deep South, rural areas and suburbs across the country. Common sense and neoliberal economics tell us why: because its as cheap or cheaper than places like India or China for them to do so.

The story goes on to describe how low wages (as in union-unfriendly “right to work” states) and cheap real estate are enticing companies like bomber-builder Northrop Grumman and Accenture to invest in rural areas like Corsicana, Texas and the Umatilla Indian reservation in Oregon. Locating in these parts of the U.S. has become a cost-cutting measure designed to improve their positions vis a vis global competitors.”*

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