Why U.S. Manufacturing Won't Die

WSJ ^ | July 3, 2003 | CLARE ANSBERRY

[aMorePerfectUnion]

Harp,

Agreed. I am betting on America's entreprenurs to do what they've always done - innovate and create. This is, I believe the missing piece, ie. a dynamic economy that reinvents itself continually. There are not a static number of jobs that will never change that we just shuffle around the world. Americans are better at this economic innovation and reinvention than most other nations.

Harp, your post was excellent! Thanks for expending your efforts to respond.

ampu

[1rudeboy]

Dude, you're not on the program. Chapter 3, titled "Protectionist Two-Step," explains how to argue that there is no such thing as free-trade, while opposing any trade-agreements that lead in that direction.

[Paulus Invictus]

Geez! I don't recall ever paying that kind of money for AMERICAN-made microwaves or tennis shoes. In fact, the prices were very reasonable and the tags had "MADE IN USA" attached. Do you have a proof of your allegation?

[harpseal]

Dude, you're not on the program. Chapter 3, titled "Protectionist Two-Step," explains how to argue that there is no such thing as free-trade, while opposing any trade-agreements that lead in that direction.

Since you seem to disagree that there is no free trade at present perhaps you can explain Chinese tarriffs, Indian currency controls and the US government's OPIC program? While your at it explain Airbus' subsidies from European governments.

[harpseal]

If we buy into the idea that we MUST have things (i.e. a materialistic lifestyle) and yet we'd like to pay less for it then we're only going to force companies to outsource where they can get the same quality for less or better quality for the same price....

Not everyone buys into that idea. if a pair of tennis shoes cost $10 to produce in the USA and $9 to import from China and $100 retail (see Nike tennis shoes) it is not necessarily a good buy no matter what and not a principle part of our lifestyle.

... The profits go to the companies, i.e. the shareholders who reward companies that layoff workers here and ship manufacturing to China.

Actually if you have been paying attention over the past several years the profits often do not accrue to the shareholdersd rather teh shareholders endure a loss of value while the money flows to the corporate management.

Don't blame the companies, blame the shareholders, blame us. "We've seen the enemy, and it is us." Now, who said that?

The only thing the shareholders can be blamed for is not being critical of mangement and demanding better real performance. As to your Pogo line I do not buy it.

What I state is if the government policies are destroying the American economy then change the policies.

[1rudeboy]

As soon as you discuss foreign direct investment in the United States and the Doha Round.

[PatrioticAmerican]

The industrial output data is false. It accounts for products manufactured by American companies but foreign produced.

[PatrioticAmerican]

"Free trade prevents me from buying a $1200.00 microwave and $600 tennis shoes."

...and from having a job to pay for $100 microwaves and $100 sneakers because some 12 year old child in India has your job.

Your example is horse hockey!

Are you saying that America is not a viable economy? That no one can live here? I guess whatever it is that you do you must cost too much? Maybe some child needs to do it?

Where the Hell is this idea that America is too expensive to produce anything coming from? We are the greatest nation on Earth, and everyone wants to live here, yet, we suck??? How on earth did we get to be the greatest if we are too useless to produce anything????

If American companies want to produce cheap products in cheap countries, then let them sell those item there, not here.

[BlazingArizona]

And as soon as our salaries get pounded low enough, and the dollar devalued far enough, it will become economical for Asian manufacturers to locate plants in the US, following the lead of the Europeans.

[PatrioticAmerican]

Good point. We don't have "free trade", we have "One way trade". Americans are free to buy cheap products from cheap countries but are forbidden from selling to those cheap countries.

[ninenot]

Interesting task you have.

The article mentioned that 'custom manufacturing machinery' will be in high demand.

What the author does NOT explain is Cincinatti Milacron's current slump. "The Mill" OWNS both metal and plastic custom manufacturing machinery markets.

Maybe YOUR efforts are putting "the Mill" in the slump.

[ninenot]

Well, obviously, folks who used to make metal stampings are now dentists or doctors.

That's what it means. You take 20 years' experience as a tool-and-die maker and presto!! You are a Doctor.

[Mortimer Snavely]

People need money to buy stuff. They can't make money unless they make stuff to sell. Keep this up and we won't have any money to buy anything. Stuff'll be in the shops, of course, but stuff regular Americans used to be able to buy will become specialized items for folks who own manufacturing plants overseas.

[ninenot]

There are more people working for government than for the manufacturing industry.

ANOTHER little item the article doesn't mention.

GummintGrowth issue is huge.

In the 1950's, the number of people employed in mfg. was MUCH larger than the number employed in Gummint.

The growth of regulation and tax revenues is also playing a major role in strangling manufacturing in this country.

OTOH, we all know about the mysterious "brown cloud" of air pollution over Asia.

Cheap manufacturing practices.

[DugwayDuke]

"As to trade barriers the USA developed as the foremost manufacturing economy with trade barriers in place that is behind protective tarriffs for manufacturing."

So are you proposing tarriffs to protect American jobs?

[ninenot]

Where on this planet does he expect to live?

Condit, Boeing's CEO, can pull some IOU's from Red China. It was Boeing who assisted them in perfecting their guided missile technology.

Boeing promptly moved its HQ from Washington State to Chicago. Chinese ballistic missles now can hit the State of Washington.

[Bluntpoint]

I guess whatever it is that you do you must cost too much? Maybe some child needs to do it?

I used to practice law. Learned it was a dead end career for an honest person. I adapted and changed. I now own a farm, raise quarter horses and do some writing on the side. I make considerably less money now. I accept that. I will leave fighting windmills for you chaps.

[ninenot]

It's partially wages and benefits--but it's the Gummint regs and tax burden(s) which REALLY add cost.

However, given that (fully-loaded) labor cost typically accounts for only about 30% of product cost, even a reduction of 25% in fully-loaded-labor cost will only reduce end-product cost by 7.5%.

Not really that much, eh?

[ninenot]

"We've seen the enemy, and it is us." Now, who said that?

Pogo, 1965 (approx.)

[Bluntpoint]

By the knot of nine, may the thing I wish for be mine.