Below is a brief story that was on the front page of my local paper this morning. It reflects the real world, not the MSM Obama world of spin and misinformation. You can believe the stories of economic recovery and jump on board the stock market train, but it is all a farce. Here is a small company without union labor that has been making plastic forks and spoons for sixty five years in this community. There will be 490 people with families to support out of work in two months. This is a downward spiral that shows no sign of reversing. They simply ran out of money.
The real question is why. How come they were able to make a profit for decades and now have to shut their doors? It’s because Chinese slave labor can produce these plastic utensils at a fraction of the cost of this small company. We have to ask ourselves whether it was worth it to be able to buy a box of Chinese produced plastic utensils at Wal-Mart for $2.00. Would the country have been better off if we had to pay $4.00 for a box of American produced plastic utensils because we imposed a tariff on the Chinese slave labor produced products?
You decide.
HATFIELD TWP. — Jet Plastica, a Hatfield Township-based business that has manufactured plastic forks, spoons, cups and more for half a century, will close within months.
“We’re just frankly out of money. We can’t go forward without a buyer,” he said.
Located at 1100 Schwab Road across from Georgia Lane since 1982, Jet Plastica was originally founded as two separate companies. One of which, Plastica Company Inc., was founded in North Wales in 1947 and manufactured plastic spoons, forks and knives, according to the company website, 
www.Jetplastica.com.
Jet Container Corporation was founded in Lowell, Mass. in 1962 and manufactured plastic cups, before a series of sales culminated in Jet Container being purchased by Plastica in 1982 as the combined company moved into Hatfield Township.
The company operates manufacturing facilities in Hatfield and in Fowler, Calif., employing a total of approximately 490 people, according to Gerrard. Roughly 380 workers are employed in Hatfield and 110 in California.
All of those employees were notified Thursday that their jobs will soon be coming to an end, Gerrard said Monday, and the company has already begun that process.
“This will be a gradual wind-down that will take place between now and probably sometime in June. We’ll just gradually decrease our activity between both sites,” he said.
He added that the company leases the Schwab Road property but declined to comment further on its ownership. Montgomery County property records indicate the property has been owned by a Mass.-based company called May 12 Realty L.P. since 1994, when it was purchased for $3.3 million, and the property was most recently valued at $5.6 million.
Hollow man says:
The plastic forks will be 4 dollars soon enough, then 6 dollars then 8 dollars. We will borrowing money to take care of thses people in addition to the medical care for 300 + million Americans plus paying off the wars, plus medicare SS, and of course welfare. We should be completely broke hmmm, lets see a while back lol.
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3rd April 2012 at 10:58 am
Stucky says:
A truly depressing story …. but, unfortunately it is just one of THOUSANDS such stories.
But, hey, the stock market is going up, up, up. So there’s nothing to worry about.
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3rd April 2012 at 11:11 am
TeresaE says:
So many of these stories. So much despair, pain, loss, loss of future.
So much loss of future tax revenues too, but the local city councils & state legislatures (plus ALL their employees) can’t see it and don’t care.
It won’t be long now, when the true cost of those cheap utensils smacks Americans in the head. I’m estimating that my city is going to have to double our tax rate just to pay for those already retired and promises to those left. As it is the entire state is issuing long term bonds to finance today’s expenses.
Sure, fight over a penny and let a foreign supplier “win.” Just because your American suppliers were both your best customers AND majority local taxpayers, well just ignore that.
Cause LOOK! WallyWorld just got another 10-20 year abatement from local taxes to “bring jobs” to your city!
Oh the glory when the reality of $7.25 an hour, $2000 monthly health care and non-payment of property taxes smacks our leaders between their eyes.
Save a penny today, fuck your grandkids for life.
Guess because it has “worked” thus far, it surely must work tomorrow. Nobody ever pays and SNAP cards and happy pills for all.
Amen.
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3rd April 2012 at 11:29 am
Hef says:
I think too much emphasis is put on the loss of manufacturing jobs on The Burning Platform. Touching up on some basic Economic skills would be helpful when writing articles such as this. Obviously the human side of this story is terrible. But as Frédéric Bastiat wrote 150 years ago there is the seen and unseen. Take for example when typewriter factories were closing 20 years ago. Sure we can see all the faces on TV of the jobless and get a sense of their pain. But at the same time others were training in Silicon Valley to produce our powerful PCs. I can’t imagine anyone would want to go back to 1992 technology to keep some manufacturing jobs continuing.
Another aspect is the loss of manufacturing jobs in general which isn’t as bad as the MSM and politicians say it is. By producing products cheaply overseas we have amazing AFFORDABLE technology. Millions of Americans can now afford smartphones, flat panel TVs, digital cameras, quality clothing, appliances, etc etc that wouldn’t be possible without the cheap labor. Sure we lose manufacturing jobs, but we also don’t need the same income to enjoy some of life’s pleasures. Without cheap labor and the economies of scale it allows, many of the items just listed would be a luxury only the wealthy could afford.
The key is getting these people who just lost their jobs the education and skills to get jobs elsewhere. This isn’t something a government program can do. It is something the free market needs to provide, and make it affordable. Trying to compete against a big bloated government funded school is impossible, and forcing someone into one of these institutions to take on $50,000 – $100,000 worth of school debt is morally wrong.
The Burning Platform touches on the real issue fairly often. A centrally planned economy with a worthless currency is destined to fail.
Hot debate. What do you think?
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3rd April 2012 at 11:58 am
Administrator says:
I disagree Hef.
Millions of Americans cannot afford smartphones, flat panel TVs, digital cameras, quality clothing, aplliances, etc. They borrow at 15% interest from Wall Street banks to possess these items. The 20 million unemployed Americans are not buying these affordable items.
I can’t even make sense of your education comment. Speaka da english.
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3rd April 2012 at 12:22 pm
TeresaE says:
Hef, what a tool.
An economy that produces REAL things of value, grows.
An economy that produces mandates, fines and regulations, shrinks as the government and their corporate cronies grow.
I cannot wait until the REAL cost of our loss of manufacturing hits people like you.
American small biz and manufacturing used to pay for schools, roads, cops, firefighters and health care.
Now it is barely hanging on as the assembly arm of the Chinese productive economy.
Those “cheap” goods are costing our children their way of life.
Glad that makes you so happy. Enjoy your bright, shiny toys, for now.
Soon, those that USED to contribute are going to be pounding on the halls of government to take them from you.
Progress, what a great thing.
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3rd April 2012 at 12:43 pm
Nonanonymous says:
Tariffs are, of course, the means by which the founders intended the federal government to fund itself.
How far out of bounds are we, and how much further do we have to go?
Until the wheels come off, then it’s jack up the jack booted thugs time. The FSA will army will have to find a new name, and the global elitists will wonder, what the heck happened.
It’s simple, central planning doesn’t work, never will, at least it’s not the most efficient form of resource allocation. As resources become more and more scarce, so too, will the need to increase efficiency. Out with the central planners, in with individual freedom and liberty. That is, after all, the principle upon which our nation was founded, lest we forget.
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3rd April 2012 at 1:37 pm
cahuitabeachbound says:
Hef:
Taken to your logical conclusion, wouldn’t slavery really diminish costs?
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3rd April 2012 at 2:15 pm
Stucky says:
“Take for example when typewriter factories were closing 20 years ago. Sure we can see all the faces on TV of the jobless and get a sense of their pain. But at the same time others were training in Silicon Valley to produce our powerful PCs.” —- Hef
A similar example is often used for folks who sold ice from their wagon cart …. then along came the fridge and put all those people out of work.
But the flaw in your argument is that back then people has SOMETHING ELSE to migrate to! That’s not the case today. What are all those folks who make plastic forks and spoons supposed to do when they lose their jobs?
Information technology? Yeah, right … those jobs are shipped overseas as fast as manfucturing jobs. Green technology? Another joke. Soyndra, anyone? Medicine? Obamacare will fuck that up. What’s left?
Your reasoned response — while I disagee with it — makes me believe you are interested in learning, truth, differing opinions. If so, please check out these two books.
.
“In Praise of Hard Industries: Why Manufacturing, Not the Information Economy, Is the key to Future Prosperity”
http://www.amazon.com/Praise-Hard-Industries-Manufacturing-Information/dp/0395899680
.
.
.
“Make It In America: The Case for Re-Inventing the Economy”
http://www.amazon.com/Make-It-In-America-Re-Inventing/dp/0470930225
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3rd April 2012 at 2:22 pm
OF says:
Hef: With 15 trillion in debt and some 200 trillion or whatever in unfunded liabilities I really do not understand the word AFFORDABLE….Sorry.
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3rd April 2012 at 2:24 pm
Jeb says:
Reading Hef’s comment makes me suspect that Hef is from one of the many Western European Socialist States. (You know those States that that have higher tax rates than the so-called Commie Russians).
Obviously, Hef has not only drank, but fully digested the Statist Kool-Aid that holds that a country can be prosperous even if it does none of the following:
Make and Build Stuff
Grow Food
Pull minerals from the ground
Trade Stuff with other Countries
In the following comment Steff says that:
“Sure we lose manufacturing jobs, but we also don’t need the same income to enjoy some of life’s pleasures. Without cheap labor and the economies of scale it allows, many of the items just listed would be a luxury only the wealthy could afford.”
Hef does not seem to realise that the “cheap labour” (ie. East Asian workers) are “cheap” because they are terrified that their own children will be doing their same jobs or will be going back to the farm – which can be a sentence to a very hard and short life. Both sides are being short-changed here.
Hef’s statement on education makes no sense to me at all. Education is very important, but if Hef had an earth-moving job to get done, such as digging out a terrace, given a choice of a B. Sociology with a Shovel OR a School-leaver with an Excavator, I’m sure that even Hef would choose the guy with the Excavator. Human Capital is no substitute for Industrial Capital.
Hey Hef, the free market used to provide education – it was called an Apprenticeship.
Farmers. Machinists. Builders. Butchers, Bakers and Candle-Stick Makers. Even Lawyers and Doctor/Surgeons.
Dear, oh dear, I hope I don’t have to arrange for any more re-education for Hef.
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3rd April 2012 at 2:53 pm
Zarathustra says:
The United States, Japan and Germany all became first rate industrial economies under a tariff system, while the US and Britain declined under free trade. While I support a general tariff (this separates me from libertarians and the mises anarchy crowd, I oppose targeted tariffs since they invite political corruption.
As for Hef, please tell me what new technology is going to replace plastic forks?
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3rd April 2012 at 2:56 pm
Zarathustra says:
The United States, Japan and Germany all became first rate industrial economies under a tariff system, while the US and Britain declined under free trade. While I support a general tariff (this separates me from libertarians and the mises anarchy crowd), I oppose targeted tariffs since they invite political corruption.
As for Hef, please tell me what new technology is going to replace plastic forks?
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3rd April 2012 at 2:56 pm
AWD says:
Funny, probably most of the people at that factory drive Toyotas/Hondas/Nissans, and have a house full of Chinese shit, and wonder why they lost their jobs. Until people quit consuming so many Asian goods, cars, washers and dryers, T.V.s, computers, phones, well, everything, we’re fucked. That ship already left, however, they won, another factory “bombed” in the economic war. Too late and too bad.
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3rd April 2012 at 3:11 pm
Stucky says:
AWD
The problem is, often there are no other choices. For example, I’m pretty sure we haven’t made TV’s in the USofA for decades.
I’m down on NOT buying foreign cars, though!! Did I tell you about my used Buick Century I recently bought? LOL
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3rd April 2012 at 3:18 pm
DaveL says:
Will we be better off buying Chinese “Pink Slime” now that the big scare has put local people out of work?
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3rd April 2012 at 3:25 pm
AWD says:
Stuck:
Until we HAVE a choice, we’re fucked, pure and simple. More than $500,000 billion leaves our country every year. So, be borrow $1.4 trillion so our economy doesn’t collapse (61% of the borrowing is now financed by the Federal Reserve). How could that end well?
The pink slime, I believe, is a metaphor for female __________. You can figure it out.
Pink slime, it’s everywhere…
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3rd April 2012 at 3:30 pm
Hef says:
Sorry, I wrote my rambling response fairly quickly this A.M. For the record, I love this website and agree with most of the posts.
Even with the recession, manufacturing output is up 75% from 1990 – 2010 (adjusted for inflation). and we still produce 45% more than China. It has declined as a share of gross domestic product only because other industries have expanded even more rapidly. The key is productivity. Our workers are churning out more goods with a smaller workforce.
Our economy is always shifting. Alarm could have been raised in the early 20th century when our farming sector shrunk so dramatically. In 1900, 40% of Americans lived on farms and today it is less that 1%. But of course this was because our workers were becoming more productive. It takes fewer people to produce our food just as it takes fewer people to produce our goods.
Also remember as societies become richer then spend less of their disposable income on physical products and more on services. Think health care, meals at restaurants, vacations, cell phone contracts, etc.
Administrator your pieces are always so insightful I would like to hear more from you on what the solutions to our many problems are.
Stucky, I don’t know what these people are going to do. I would love to see the government step aside so capital can go where it needs to go and not into boondoggles such as solar farms and ethanol plants. The only way our standard of living can increase is through investment. Lowering the capital gains tax would be a good start. Doing away with lobbying and crony capitalism would help. What we’re doing now sure isn’t working.
Teresa E. I’m not sure why I’m a tool because I do agree with you for the most part. When it makes sense for manufacturers to relocate here they will do it. Let’s get rid of the regulations, unions, and ridiculous tax rate for corporations. Of course the multi-nationals enjoy zero taxes because they can transfer their massive profits to tax-friendly jurisdictions. I’m not sure if you are saying another layer of government is necessary to make it mandatory for manufacturers to move back to the USA? What if other countries had the same policies?
cahuitabeachbound. Slavery is not only immoral, it’s also grossly inefficient. As the great Austrian economist Ludwig von Mises explains:
The price paid for the purchase of a slave is determined by the net yield expected from his employment…just as the price paid for a cow is determined by the net yield expected from its utilization. The owner of a slave does not pocket a specific revenue. For him there is no “exploitation” boon derived from the fact that the slave’s work is not remunerated…. If one treats men like cattle, one cannot squeeze out of them more than cattle-like performances. But it then becomes significant that man is physically weaker than oxen and horses, and that feeding and guarding a slave is, in proportion to the performance to be reaped, more expensive than feeding and guarding cattle…. If one asks from an unfree laborer human performances, one must provide him with specifically human inducements. If the employer aims at obtaining products which in quality and quantity excel those whose production can be extorted by the whip, he must interest the toiler in the yield of his contribution. Instead of punishing laziness and sloth, he must reward diligence, skill, and eagerness.… It is this fact that has made all systems of compulsory labor disappear.
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3rd April 2012 at 3:38 pm
Stucky says:
Hef
First, I want to give you many many thumbs up for your reasoned response … your turn-the-other cheek attitude even though you have been treated harshly. Our members are passionate … and sick and tired of all this shit … and comments shouldn’t be taken personally … which you did not. Mega kudos.
” … manufacturing output is up 75% from 1990 …”. Interesting stat. I’m guessing most of it is due to increased productivity. Management would like nothing better than to reduce human cost to zero . Automate everything …. let the fuckin’ robots do all the work. Not much we can do about that. Not even sure we should try.
Hopefully, our resident greedy capitalist factory owner, llpoh, will show up tonight to provide his insights …. always invaluable, even when he turns Grumpy.
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3rd April 2012 at 4:06 pm
Kill Bill says:
I would love to see the government step aside so capital can go where it needs to go and not into boondoggles such as solar farms and ethanol plants -Hef
Me too. But the problem with that is the privately owned creator of capital, credit and debt NEEDS the government to bail it out and which allows it to print money and create credit and debt thru accounting entries. ALL from the maddening ether.
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3rd April 2012 at 4:22 pm
WIP says:
Sorry, but this story fits nicely into the NWO plans.
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3rd April 2012 at 4:25 pm
Administrator says:
WIP
Can you please explain what you mean?
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3rd April 2012 at 4:26 pm
Stucky says:
“Can you please explain what you mean?” —- Admin
Translation: “What the fuck are you talking about you linear thinking piece of shit??!!”
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3rd April 2012 at 5:09 pm
Stucky says:
NWO is Ron Paul’s new campaign slogan. it stands for, “Not Working,Obama!”
Non-donors will get a free Obama ShamWow
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3rd April 2012 at 5:22 pm
AWD says:
Hef:
Stick to what you know, silicone and fake blond-haired bimbos.
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3rd April 2012 at 5:24 pm
WIP says:
New World Order.
Americans have it too good. Even the poor have running water, cell phones, electricity etc. That is just too much. The plan is to expose American labor to competition all around the world. This makes it better for Corporations (International) as well as the government. Coprorations get cheaper labor and the government gets more people depending on them for survival. In order to increase our most effective export (dollar) we must create jobs overseas so that Americans can buy cheap shit while sending dollars overseas. Its like a drug dealer/drug addict relationship. This in turn will make more people dependant on the dollar which is controlled by Da Fed/government. Dependancy = Power.
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3rd April 2012 at 5:38 pm
WIP says:
Stuck,
My sister keeps telling me about how America is the head of the snake(?) and all will be drawn into the fold of the….(something, something). She gets so angry that I can’t understand most of what she says but she is a god fearting, bible thumping religous fanatic. It comes from the book of Revelations. Any idea what she is talking about?
Btw, she says that according to the bible, Ron Paul has no chance. I had no idea that RP was mentioned in the bible.
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3rd April 2012 at 5:44 pm
Llpoh says:
Hef – I disagree, even with your measured response. Productivity in the US has been stagnant for some time, ESP. In manufacturing. There was a bit of a surge that resulted from tech, ESP in the early nineties (computer advancements) but current productivity gains are almost non- existent. I will come back with my stats shortly.
Re this story, this will continue to happen. I am ramping down my business slowly to account for expected loss of business to China and it’s ilk. My business is profitable. However the moment it begins losing Monet there will be no ramp down – I will slam the doors at light speed. Otherwise I am funding the loss out of my own pocket. Not going to happen.
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3rd April 2012 at 6:43 pm
DaveL says:
“Here is a small company ‘without union labor’ that has been making plastic forks and spoons for sixty five years in this community.”
And therein lies the problem. If he had union labor he would now be living high off the government tit.
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3rd April 2012 at 7:04 pm
Stucky says:
” … she says that according to the bible, Ron Paul has no chance. I had no idea that RP was mentioned in the bible ……. It comes from the book of Revelations. Any idea what she is talking about?” — WIP
Yes .. quite well, actually.
Her first problem is that she interprets Revelation LITERALLY. The clear fact of the matter is that a literal interpretation is a very recent phenomena (past 150 years or so). The very early church had all sorts of interpretive methods — spiritual, allegorical, fulfilled prophecy, etc. but never literal — and I challenge anyone to cite sources that say otherwise. IMHO, the modern literal method turns some extremists Bat Shit Crazy …. like those who say we gotta nuke Iran because it’s in the bible.
Regarding Ron Paul specifically, I will take a guess. RP is running to be the leader of (still) arguably the most powerful nation on earth. And he’s a good guy. The world leaders depicted in the End Times in Revelation are all evil to the core … even the devil incarnate. Clearly, RP doesn’t fit the bill so, by deduction, RP can’t be in the bible.
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3rd April 2012 at 7:14 pm
Llpoh says:
The above chart highlights what is happening re productivity – there was an upsurge in the 1990s as the impact of computers was felt – computer tech helped blast technology forward. However, the back end of the chart clearly shows that that surge is over, and productivity is quickly falling back. Further, althoug I agree with Hef re manufacturing output increasing, much of the increase is based on US population growth over the timeframe in question – almost 30% increase in population during the same period. Further, most of the increase would have occurred withing megacorps, with the capital ability to keep pushing productivity via capital injections, that small manufacturing simply does not possess. Also, a lot of the increase would have been funded by consumer debt – which is going to cause an enormous ripple effect when that dries up, as it will. Germany is about to face the same issue, although they have somewhat protected themselves by creating a brand name for themselves as suppliers of “luxury items/high quality items (which is largely bullshit”.
China’s productivity is now growing, best estimates, around 7 – 10% per year. They are coming off a low base, of course, and are adding tech at a high rate. But that sort of productivity growth will certainly see them making things difficult for US manufacturing for some time. Even though their wages are starting to grow strongly, much of that growth is offset by increased productivity.
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3rd April 2012 at 7:17 pm
Stucky says:
“Productivity in the US has been stagnant for some time, ESP. In manufacturing” — llpoh
llpoh
Just curious. WIP stated “manufacturing output is up 75% from 1990″. I did not verify the statement. But, if true, what accounts for the increased output, if not productivity?
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3rd April 2012 at 7:17 pm
Stucky says:
llpoh
Nevermind. We posted at exactly the same time.
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3rd April 2012 at 7:19 pm
WIP says:
@Stuck, LLPOH and HEF,
Is it possible for a country to live/thrive without manufacturing?
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3rd April 2012 at 7:39 pm
Hef says:
Llpoh. Thanks for the intelligent response. I will look more into your post when I get a chance. And yes I like silicone and fake blond-haired bimbos! (But who doesn’t?)
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3rd April 2012 at 7:53 pm
Stucky says:
WIP
I’ll give it a shot with pictures.
I might say a country must have manufacturing. Look at the world’s Top 15 manufacturers … all “rich” nations. (Although is China rich with 1 billion poor people.). If I could find a chart of the Bottom 15 they would all be nations like Somalia.
.
.
I might also say a country can survive without manufacturing. Take a look at Europe only, which has both rich and poor countries. Luxemburg has very little manufacturing … but I believe they have the highest per capita income in Europe.
.
.
So, my friend, I’m gonna give a chicken-shit answer and only say; “It depends.” (On a lot of factors.)
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3rd April 2012 at 7:59 pm
Colma Rising says:
“Free Trade”. Assumes free flow of goods and capital.
NO country in history has grown in this environment.
China is operating as a mercantilist… almost by definition. A mercantilist economy will loot a “free trading” economy.
Results. Look at them.
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3rd April 2012 at 8:18 pm
WIP says:
Stuck
Thanks for the response. I grew up Seventh Day Adventist. Strict. I should know more of this but I was in full rebellion mode ALL of my adolecent life. Maybe that I still am. I now attend a non-demominational church. It is a Bible church. I will consider what you have written about interpretations when I am in church this Sunday.
Btw, I did not give you that thumbs down.
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3rd April 2012 at 9:01 pm
AWD says:
Colma is 100% correct. We are being looted.
and it gets worse every year…
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3rd April 2012 at 9:13 pm
Colma Rising says:
RESULTS. LOOK AT THEM ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
(Perfect, AWD)
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3rd April 2012 at 9:19 pm
underfire says:
Looted is right, and while this has been going on under their noses, our leadership has been doing what? Anything other than selling out to the highest bidder?
Incidentally, hasn’t the Bureau of BS been changing the criteria of manufacturing numbers, just like everything else? Seems like now they’re including things like hamburger manufacturers, (McDonald flippers).
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3rd April 2012 at 9:39 pm
Stucky says:
WIP
7th Day Adventist interpret prophecy by associating with ACTUAL historical events. For them a good portion of Revelation is already fulfilled. But I find the dating method extremely confusing (and without merit), and the historical events chosen highly arbitrary and speculative. I mean … look at the chart below. I’d need a math degree, a slide rule and a great imagination to understand the half of it. Making simple things complex is the way of man, not God, imho.
Here’s my best suggestion. Don’t believe me. And don’t believe your pastor. Do your own research and studying and believe for yourself.
One thing I like a LOT about 7th Dayers is that they believe in annihilation. That is to say, sinners completely cease to exist. There is no eternal torturing by God and no eternal torment of the sinner. How refreshing!!!
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3rd April 2012 at 10:26 pm
Novista says:
Colma, hey
http://news.cnet.com/2300-33566_3-10011762-10.html?s=0&o=10011762
About the 9th slide … remind you of something?
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3rd April 2012 at 12:58 am
Novista says:
2011
http://en.wikipedia.org/wiki/List_of_the_largest_trading_partners_of_the_United_States
There are other problems beside the Yellow Peril.
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3rd April 2012 at 1:09 am
Brandon says:
Hello. While it it sad about Jet Plastica, I work for their chief competition. And at this moment we are ramping up to handle the new business. Made In America. Hardly ‘slave labor’
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3rd April 2012 at 2:09 pm