http://open.salon.com/blog/steve_klingaman/2010/11/10/food_stamps_soar_jobs_offshoreIt was a juxtaposition I could not ignore. On page 1 of the Minneapolis Star Tribune the headline read, “Numbers on food stamps are soaring.” Then, on page 1 of the Business section I found, “Polaris exec defends plan to shift some manufacturing to Mexico.” Jobs down, food stamps up. But Polaris, the snowmobile and ATV manufacturer located in Medina, Minnesota, engages in exactly the type of value-added manufacturing we say we’d like to retain.
The move to Mexico was announced despite the fact that Polaris profits rocketed 47% over a year ago in the second quarter of 2011. So what do they do with their windfall? Fund the move to Mexico. The earnings allow Polaris to easily afford cost overruns that exceed $2 million to hire thugs to protect the new plant from the drug war in Mexico. Aside: will border vigilantes in the U.S. ride Polaris ATVs to protect American jobs from undocumented interlopers?
ATVs may suit the camo crowd, Mexican drug lords, and blue collar outdoorsman in the U.S. But how many of American blue collar workers will have jobs in the future that will allow them to afford such toys?
When the Mexican plant is complete, even with paramilitary costs, Polaris expects to save $30 million a year by paying Mexican workers a third of what their American workers earn. The displaced American workers will undoubtedly go on food stamps when their benefits run out, as they undoubtedly will. And what kind of replacement jobs will displaced workers find in Osceola, Wisconsin; Roseau, Minnesota; and Spirit Lake, Iowa? Polaris will profit in the unfettered free market economy while your tax dollars feed their former workers. That’s okay with you, isn’t it? (At least it is if you own Polaris stock, I presume. It’s up 71 percent over a year ago.)
More at the link ---