Reshoring
Categories: International
This is like the dysfunctional romantic relationships you see played out on reality television all the time. First you hired the factory of sewers (pronounced: sowers) to sew together Wigs-For-Democrats. (They only cover the left side of the scalp.) They were doing just fine working in the U.S. until the Blue State in which you exist added fees and taxes and all kinds of financial friction, until the $14/ hour you were paying the workers ended up costing you $28 an hour, and you'd had enough. So you offshored your workforce, moving wig-sewing to Mexico, where it cost you $4 an hour. You worked there a while and, yes, there were hassles: corruption, drug dealers breaking in and stealing wigs, an unreliable workforce, etc. But it was so cheap that it more than made up for the friction.
Then, one day, the Blue State decided that it was hemorrhaging workers at a crazy fast pace, so they changed their laws and got rid of a bunch of taxes and begged you to come back, offering to give you tax hiatus for 3 years, i.e. you'd pay no taxes for 3 years. So you took them up on it and you reshored your workers. Meaning that you went back to the old force who'd been collecting unemployment, and hired them back, keeping their old salaries of $14 an hour, but where you didn't have to pay double that amount in fees and other taxes to the state for hiring them.
So now you sew and sew and hope you don't say "Sew what?" when the state tax collector comes three years from now.
![](https://media1.shmoop.com/images/finance-glossary/run-down-shack.jpg)