Workforce Competition & Business Costs Match-Up by Country

startupbusinessbycountryToday, more than 10,000 baby-boomers retire each day in the United States. Once the dominate economic and military force worldwide; America now finds itself with fierce competition from developed and emerging industrial countries such as China, Mexico, Qatar, Singapore, Taiwan, South Korea, Indonesia, Sweden, Canada, Columbia, parts of Africa like Ghana and India.

It’s worthy to note that most of these countries vs the U.S. have lower corporate tax rates, younger workforce populations at increasing participation rates, lower labor rates, students that perform better (K-12) in math, science and reading/writing. The ability to build a robust infrastructure is also important to economic growth which is a critical concern in the United States (est. $3.6 Trillion upgrades needed).

During, the past decade innovation has declined in the United States with entrepreneur start-ups down (-48%) since 2006. While the cost to do business in the U.S. has increased 245% in the last decade vs other countries which have lowered their business costs to attract more investment. It’s now very costly to start a business in the United States given its sluggish growth prospects remaining at 2% to 3% annually.

Overall, a stubbornly sluggish outlooks remain for the United States burdened by massive debt almost $18 Trillion (U.S. DEBT CLOCK) now 110% of percentage of GDP while key allies like Japan are drowning in public debt (245% of GDP). Both Japan and the United States also share declining workforce participation challenges, a major demographic shift that will remain for the next thirty years writes James Dean @ 

Economic welfare is here to stay in America with 75 million baby-boomers set to retire by 2016. Whats more, health care studies find that 65% of the retirees in United States will incur expensive illnesses such as dementia, Alzheimer’s, cancer and diabetes says James Dean. This places a massive financial welfare burden of support on the workforce in the United States; a group that is primarily under-educated vs global competition. For example, the U.S. public education system that ranks poorly 25th worldwide.

Sustainable Business Growth, Political Innovation & Affordable Cost of Living … Mexico is my Favorite Country. 

How Mexico and comparator economies rank on the ease of starting a businessMexico – The culture of educated young workers, low business tax rate (28%), low labor costs and very affordable (45% lower) cost of living vs United States. Baby-boomers retiring are salivating over the prospect of collecting social security and retirement benefits in places like Mexico at much lower cost of loving says Mr. Dean.

For example, auto workers in Mexico earn about $8 per hour vs the United States $45 per hour (labor and benefits) on-average. Recently, automobile manufacturers like Nissan have announced significant capital investments over $2 Billion in Mexico vehicle and parts manufacturing plants.

Overall, Mexico my TOP PICK given its breadth of global economic trade agreements with major countries like the United States, China, Eurozone and Canada. Doing business in Mexico is cost effective. For example, payroll tax in Mexico is just 2.5% vs. U.S. at 9% total including Medicare, Medicaid, Social Security etc.

A GDP growth rate of 4% to 6% in Mexico promotes small business ventures that have accelerated by 37% annually. English is a primary language widely spoken for business in Mexico. WiFi Internet connections are prolific throughout Mexico including T-Mobile and AT&T, so its common for people to work online i.e. telecommute.


A snapshot of the economy in Mexico shows GDP revenue produced 50% industrial / manufacturing, 45% business services / travel related and just 5% agriculture. Today, one in every four vehicles in the United States is manufactured in Mexico. It’s a manufacturing powerhouse with high quality engineers and construction skilled workers. Mexico has significant petroleum reserves for export but its workforce travels mainly by public transit, bicycle/walk, scooter and small vehicles. The cost of living in Mexico is on-average 45% lower compared to the United States. Strong family units define a rich Mexican culture that dates back to the 1500s primarily religious 90% Catholic. Mexico has a mature political and legal system that is becoming more efficient.

Under climate change scenarios Mexico does well vs. North America. Water is a key issue in Mexico but can be solved with additional ocean water purification plants to supply its population like that used in Cancun. Health care is far more affordable in Mexico vs. the United States. A doctor’s visit in Mexico costs about $30 – $50 USD with much lower costs for prescription medications. The University of Guadalajara is a leading medical research center worldwide (VISIT ONLINE). Mexico is making major investments in education and infrastructure improvements that make it a sustainable world class economic leader.

Challenges United States Faces Over the Next Thirty Years … 

Energy independence is a key issue that remains a $500 billion annual drain on the United States. A sustainable economy built on reliable transportation such as electric cars and natural gas (LNG) powered vehicles and public transit systems is critical to cost effective workforce support. Getting off oil is the most important national security issue the United States must address within the next fifteen years comments Mr. Dean.

globaleconomicgrowthToday, the United States finds itself in a Catch-22 position (i.e. high debt vs rebuilding costs), a result of poor leadership and misguided economic planning over decades where it relates to innovation and preparation of the population to compete vs higher quality, younger workforce countries like China and Mexico says Mr. Dean. The United States fiscally is unable to lower its tax regulations due to massive debt burdens and aging majority population shifts plus a huge cost of doing business thus making it unattractive long-term for business start-ups and innovation R&D.

Politically, the United States is stuck with an outdated very inefficient governing paradigm that is over run by special interest groups that make fund raising a primary need for office. The dependence on fund-raising has made the U.S. political system OBSOLETE.

A global digital economy requires efficient, tech savvy leadership capable of delivering rapid economic solutions. Mobile technology could transform politics and how work is done in Washington DC putting the leaders closer to the people at home.

cost of living U.SFurther, costs such as higher gas prices and food inflation are stunting U.S. consumers as the standard of living drops, family units have become increasingly unstable in America. This deterioration has resulted in lost workforce production costs over $460 Billion with complications such as addiction and mental illness. Violence is a common occurrence in America now, symptoms of an increasingly desperate population that is disillusioned, more often unable to achieve prosperity.

The issue of CLIMATE CHANGE is a major expense to calculate, its economic impact on the United States is $3 Trillion cost by 2020. Climate change is affecting business commerce and requires expensive rebuilding in places like New Jersey, New York, Louisiana, Florida, California, Massachusetts and North Carolina. For example, natural disasters and environmental factors like severe icing, fire and clean water shortages caused almost $35 billion in lost business and expensive clean-up (2013).

Returning veterans of the U.S. military also pose a $1.5 Trillion life-time support cost in many cases unable to work for the remainder of their lives due to PTSD mental illness and traumatic brain injury. The Iraq and Afghanistan wars are yet another example of misguided efforts and lack of smart leadership which plagues the U.S. tax payer. More over, the wars produced almost NO BENEFIT for the American people.

Examining the United States, I highlighted areas of rebuilding, costs and debt obligations that total over $27 Trillion in-order to compete vs global economic opportunities out-side-of the United States reports Mr. Dean. For example, the percentage of wealthy investors moving out-side of the United States has increased 1000% since 2006. Data shows 85% of baby-boomers would consider moving overseas to another country during retirement. For the average citizen, more affordable business and personal growth opportunities now reside out-side the United States in places like Hong Kong, Mexico, Canada and Ecuador. (Checkout FORBES business Rankings by Country).

To ensure prosperity succeed the United States must rebuild its education system using a mobile network of learning experiences that promotes  mentoring of technical work skills. Forget about traditional classroom setting in deteriorated and unsafe buildings; throw-out the outdated Common CORE Standards, a model with poor results that is financially draining municipal city budgets and U.S. tax payers.

GunViolenceCostFor families attempting to build a strong legacy, America must also become a more affordable place to live and work for the average family. For example, a comprehensive U.S. energy – infrastructure solution is nowhere in-sight and it will take 20-years to implement, given the slow pace of leadership and politically fractured population. The energy lobbyist in Washington DC have a strangle hold on innovation.

Social issues like gun ownership is a political hot-potato despite the fact U.S. gun violence is the cause of over 29,000 deaths annually at a cost of over $24 Billion (CDC READ REPORT 2013). Data shows America has about 310 million privately owned firearms with 700 times the incarcerated population of any leading country worldwide, an expense that costs tax payers billions of dollars each year.

On-average it cost tax payers $42,500 per prisoner at a total cost of $40 Billion annually. And yet, FBI / Dept of Justice data shows that nearly 55% of all prisoners released return within 3-years. Another word, its a broken “corrections” system that leaves the individual unable to reintegrate into productive society due to “felony” record which prevents employment and ends-up costing tax payers billions of dollars.

Based on several factors economic, political, environmental and social; I conclude the United States will continue a downward spiral that has already push it out of the top 10 countries desirable for new business ventures says Mr. Dean.

One response to “Workforce Competition & Business Costs Match-Up by Country

  1. Pingback: Battle for Democracy Allusive but Chinese Stocks and Economy offer Sustainable Growth |·

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