Employers’ health care costs remain in terms of reshaping American jobs

The Trump administration continues to continue the most aggressive tariff policies since the 1930 Smoot-Hawley Tariff Act. The intention of this trade war is to reshape a wide variety of American industries. Reshoring seeks to repair economic damage that has resulted from a systematic effort to move manufacturing to the labor markets at a lower cost abroad, a process that has been occurring for several decades.

But in the national debate on relocation and relocation, and the factors that lead to our current situation, a question has been ignored: the contribution of health care costs to move jobs to offshore.

Two decades ago, one of us met a major donor from a university medical center, a textile manufacturer with 1,500 employees in the United States that year, health insurance premiums for their employees increased by $ 1,000 per employee. When they looked at offshore, they found that they could obtain the same work done in a low salary country for the cost per employee of the increase in health insurance. Several years later, he only had two employees in the United States left