Forum Discussion
westernrvparkow
Jan 11, 2017Explorer
Proposed changes in Corporate tax policies and rates will likely make it more attractive for companies that sell primarily in the United States to return production to the United States. What may very well happen is a company will decide it is advantageous to build a new US plant that maximizes automation versus a foreign plant that relies on cheaper labor. This may mean the US gets a plant with 1000 workers while Mexico loses a plant that employs 3000. I really don't know if that is good or bad for the world, but it will be good for the US in the short run for sure. Long term, who knows, because the largest new markets for US products is the developing world. If we slow that development, we slow those emerging markets. Is GM better off selling one expensive Cadillac in America or 5 super cheap Chevrolets in Mexico? I really don't know. That is above my pay grade.
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