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Goodbye, Production (and Maybe Innovation)
The New York Times ^ | December 24, 2006 | Louis Uchitelle

Posted on 12/31/2006 6:25:30 AM PST by A. Pole

AMERICAN manufacturers no longer make subway cars. They are imported now, and the skills required to make them are disappearing in the United States. Similarly, imports are an ever-bigger source of refrigerators, household furnishings, auto and aircraft parts, machine tools and a host of everyday consumer products much in demand in America, but increasingly not made here.

[...]

the experts shifted the emphasis from production to design and innovation. Let others produce what Americans think up.

[...]

But over the long run, can invention and design be separated from production? That question is rarely asked today. The debate instead centers on the loss of well-paying factory jobs and on the swelling trade deficit in manufactured goods. When the linkage does come up, the answer is surprisingly affirmative: Yes, invention and production are intertwined.

"Most innovation does not come from some disembodied laboratory," said Stephen S. Cohen, co-director of the Berkeley Roundtable on the International Economy at the University of California, Berkeley. "In order to innovate in what you make, you have to be pretty good at making it — and we are losing that ability."

[...]

Franklin J. Vargo, the association’s vice president for international economic affairs, sounds even more concerned than Mr. Cohen. "If manufacturing production declines in the United States," he said, "at some point we will go below critical mass and then the center of innovation will shift outside the country and that will really begin a decline in our living standards."

[...]

"It is hard to imagine," Mr. Tonelson said, "how an international economy can remain successful if it jettisons its most technologically advanced components."

[...]

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; Culture/Society
KEYWORDS: alasandalack; depression; despair; doom; dustbowl; freetraitors; grapesofwrath; jobs; manufacturing; market; outsourcing; technology; trade; unions
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To: packrat35

"I got you beat. I quit watching TV completely. I hate commercials. If I want to watch something, I watch a DVD. Now I have satellite radio. so I never have to hear them."

Much of what I watch is on DVD, but my wife likes watching cable, so we still have it. On cable, I primarily tend to watch the History and Military channels and maybe, just maybe the local news.


321 posted on 12/31/2006 10:34:33 PM PST by BikerJoe
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To: servantboy777

And how is that any different than how things were 30 years ago?


322 posted on 12/31/2006 11:24:33 PM PST by DB
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To: SamAdams76

Exactly...Chinese labor may be a lower cost producer, but machines are the lowest cost producer.


323 posted on 12/31/2006 11:49:06 PM PST by gogeo (Irony is not one of Islam's core competencies (thx Pharmboy))
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To: gas0linealley
Yes, and they will till somebody restrains them. May it happen soon.

Good luck with that...I think you'll find that if someone doesn't want to deal with you, there's nothing you can do to stop them...I don't see how it could end any other way.

324 posted on 12/31/2006 11:59:15 PM PST by gogeo (Irony is not one of Islam's core competencies (thx Pharmboy))
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To: durasell
I'm an electrical engineer.

Started as an engineering technician at a large company in Silicon Valley. After less than 4 years I was promoted to a senior design engineer there.

In my mid 20's (which was in the 1980's) I quit and became a consultant typically charging $65 an hour operating out of my apartment.

Then I started my own contract engineering business with an associate from the same "large company". Later we started manufacturing our own products. Our company designs and sells satellite communications equipment world wide.

I didn't go to school (no college at all).

I do very well for myself. I have more opportunities than I have time to pursue.

Those opportunities are open to all that want to pursue them - here or abroad.

325 posted on 01/01/2007 12:09:19 AM PST by DB
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To: DB
"And how is that any different than how things were 30 years ago?"

different by about a couple of trillion dollars debt, a couple of million less well paying manufacturing positions and around 20 million more illegal aliens to start.
326 posted on 01/01/2007 6:09:53 AM PST by servantboy777
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To: narby; BipolarBob; A. Pole; gas0linealley
...and cost me my job.

It's not YOUR job! Ask any of your Freetobe traitor buddies, they'll set you straight. Besides, all you have to do is, (queue up the Freetobe Traitor canned response), just get another job. Blackbird.

327 posted on 01/01/2007 7:44:24 AM PST by BlackbirdSST (Stay out of the Bushes, unless you're RINO hunting!)
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To: Constitutional Patriot
Wow...the article appears to have missed the whole part about unions driving the cost of labor up so that it makes a lot more sense to make your goods in countries where there are no unions.

Wow right back at you. Apparently you don't know what makes things more costly to manufacture in the United States. It's called a middle class wage. And it's called taxes and regulations, bud. Our government taxes all production, income, both personal and corporate, all capital gain, and thereby punbishes savings and investments, while the dogmatists temporarily in charge refuse to acknowledge the trade war taxation that China and its Pacific fellow-travellers impose on our trade goods and their currency manipulations to stay cheaper...and we let their stuff into our country... without any appropriate countervailing tariffs.

Net result: U.S.-based production is taxed by the U.S. Foreign production isn't. And it gets a free ride into the U.S. at Customs. Where would you manufacture, Bud?

And, unless you're being facetious... you're more than guilty of aiding and abetting those making that decsion by blithely continuing your anti-American pogrom against Americans who actually work. Because you begrudge them a middle class wage. You begrudge them their constitutional rights to freedom of association. You begrudge them their constitutional rights to petition their government to redress grievances.

Your whole screen name is a misnomer.

Your anti-unionism, which is rife among the 'bots has cost us the last election...and it will go much worse the next go-round because you still haven't learned your lession.

And, oh, btw, the Communist Party in China is imposing its form of "unions" on U.S. firms there. Which simply means that they won't be allowed to strike...i.e., until the Communist Party is good and ready to destroy the U.S. companies if they won't play ball. So much for unions being the basis for your spurious competitiveness differential.

328 posted on 01/01/2007 8:11:13 AM PST by Paul Ross (Ronald Reagan-1987:"We are always willing to be trade partners but never trade patsies.")
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To: kerryusama04
Customer service drops far below acceptable levels.

Indeed. Time after time we are seeing defective manufactures imported for retail...but the retailers can't get accomodation for their concerns.

One Big Box Retailer had its Xmas shipments of flat-screen plasma televisions from China suffer over 39% DOA. But, hey, those prices sure looked great.

329 posted on 01/01/2007 8:19:59 AM PST by Paul Ross (Ronald Reagan-1987:"We are always willing to be trade partners but never trade patsies.")
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To: servantboy777
Record budget and trade deficits while our competitors enjoy record surpluses and record double digit economic growth.

Japan and Germany have surpluses but their economic growth sucks. And Germany has unemployment near 9%. Are you sure you want that for America?

330 posted on 01/01/2007 8:38:54 AM PST by Toddsterpatriot (Why are there so many idiots in California?)
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To: GregoryFul
People would not be paying "capital gains" taxes on phony increases in "value" of their property.

I agree with this, but I get the feeling that you believe there was no inflation or deflation under the gold standard. Is that what you believe?

331 posted on 01/01/2007 8:40:50 AM PST by Toddsterpatriot (Why are there so many idiots in California?)
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To: SamAdams76
the United States is truly a melting pot of all nations. Despite all our "problems", we are still the nation that the world wants to emulate and emigrate to. We could solve our immigration woes by helping other countries be more like us in the first place. And we can do this by continuing to trade with them and in the process, we create a global web of customers in which to sell our goods and services to.

Bravo.

332 posted on 01/01/2007 9:29:49 AM PST by narby
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To: gas0linealley
Your argument for free trade reminds me of religion...you'll have pie in the sky when you die.

Free trade works every time it's tried.

Will trade make China less likely to make war on us?

I think so. It makes them dependent on us as a customer. Why would someone destroy their customer?

I believe the radical trade protectionism of the 30's not only contributed to the Great Depression, but also set the stage for WWII.

Great Britain had a good trade going with her American Colonies...what went wrong?

They stopped "free" trade and replaced it with controlled and taxed trade. Read up on the Boston Tea Party. We went to war precisely to reinstate "free" trade.

333 posted on 01/01/2007 9:37:55 AM PST by narby
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To: BlackbirdSST
It's not YOUR job! Ask any of your Freetobe traitor buddies, they'll set you straight. Besides, all you have to do is, (queue up the Freetobe Traitor canned response), just get another job.

Or, in the case of our local Bolsheviks, the canned response is "just sit on your butt and complain about it."

334 posted on 01/01/2007 9:42:07 AM PST by 1rudeboy
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To: narby; All

That is correct, in fact they had to ship the goods only to Britain..


335 posted on 01/01/2007 9:45:19 AM PST by KevinDavis (Nancy you ignorant Slut!!!!!)
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To: GingisK

"I know for a fact that a router Sears used to sell for $79.00..."

...Funny you should mention this...I just bought one of these for that price. It works great btw...


336 posted on 01/01/2007 11:22:24 AM PST by Constitutional Patriot (Socialism is anti-American, and Democrats are socialists!!!)
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To: Paul Ross
Your anti-unionism, which is rife among the 'bots has cost us the last election...and it will go much worse the next go-round because you still haven't learned your lession.

You are absolutely correct about that.
337 posted on 01/01/2007 12:36:41 PM PST by gas0linealley
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To: narby
Free trade works every time it's tried.

Too bad it doesn't exist apart from theory.
338 posted on 01/01/2007 12:39:55 PM PST by gas0linealley
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To: narby; SamAdams76

Wow, thanks for that bit of insight. Here I thought we were experiencing a trade deficit of $800 billion dollars per year.

Sorry, but the facts don't support your arguements.


339 posted on 01/01/2007 3:38:34 PM PST by DoughtyOne (Victory will never be achieved while defining Conservatism downward, and forsaking it's heritage.)
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To: Constitutional Patriot
I just bought one of these for that price.

Cost of goods was $7.15. The profit margin is 1000%, which is beyond "userous".

It works great btw...

Yep, they do carry good stuff. I have their table saw, jointer, and a host of other tools.

340 posted on 01/01/2007 5:23:58 PM PST by GingisK
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