Manufacturing is not in trouble

TownHall.com ^ | Thursday, August 14, 2003 | by Bruce Bartlett

[JohnHuang2]

Thursday, August 14, 2003

Quote of the Day by eggman

[lelio]

The truth is that manufacturing is doing just fine in every way except employment.

That's going to be written on the tombstones of free traders from this era. The economy's fine! Just no one is working. Why does this sound like "The surgery was a sucess, but the patient died"?

[Captainpaintball]

Good news! I say we ship our ENTIRE defense and auto manufacturing industry to China. Anyone have a problem with that?

[kms61]

"The truth is that manufacturing is doing just fine in every way except employment."

Other than that, Mrs Lincoln, how was the play?

[kms61]

The free traders clearly have their talking points. These Op-Ed pieces are popping up more frequently. Looks like an orchestrated campaign to me. They know they're in trouble with the voting public.

[lelio]

There is absolutely no evidence whatsoever that we are becoming a nation of "hamburger-flippers."

Be sure to tell the Master's graduate that's greeting you at Walmart next time you're there.

If a U.S. worker is five times as productive as a Mexican worker making one-fifth as much, they are exactly equal from the point of view of a producer.

What if the Mexican was 1/4 as good, or at least a boss thinks they are? The short sighted person will ship everything down there to get his next quarter's bonus.

The best measure of comparative productivity levels is real GDP per employed person.

There's two problems with this: what exactly is "real" GDP? How is that calculated when you're dealing with cars made up of 80% foreign parts? Do you really trust the government to tell you the truth in this? And second, the easiest way for this number to go up is for everyone to be laid off.

Over the years, such companies discovered that it was more economical to contract out such work.

This writer can't be serious bringing this up. Tell that to the Pillowtex and other textile workers out of work with no prospects for a job in North Carolina.

Can Bruce ever see a bad economic trend if one occured?

[First_Salute]

Bump.

[RLK]

This guy needs a brain transplant. The brain of a frog or common earthworm would be an improvement.

[RLK]

Good news! I say we ship our ENTIRE defense and auto manufacturing industry to China. Anyone have a problem with that?

-------------------

Good idea. The people who are put out of work can get things cheaper.

[Stallone]

Makes a long overdue case to BUSTING UNIONS and LOWERING BUSINESS TAXES.

Why else would American manufacturers leave?

I know, I know, reality can cause Libs to spontaneously combust.

Why do you think I brought along the Red Hots?

[RLK]

Makes a long overdue case to BUSTING UNIONS and LOWERING BUSINESS TAXES. Why else would American manufacturers leave?

-------------------------------

For the same reason we had slavery in the south. People who are CEOs over the new plantations get nearly free labor and pocket the profits.

[Freedom4US]

I think they should be in trouble. Every four years, the politicians come around and say "vote for me" and then talk about how they are going to "do something" about jobs and employment. They go away back to Washington, and nothing ever gets done.

"Free Trade" is a crock. Why we even have borders remains unclear at this stage - we don't protect them physically or economically.

[dennisw]

Good news! I say we ship our ENTIRE defense and auto manufacturing industry to China. Anyone have a problem with that?........

How about we threaten to outsource Congressional staff jobs to India? See how they they like it when their ox is being gored.

So when you phone up Congess critter X you reach his support staff in India to take care of your problem.

[Jim Noble]

The truth is that manufacturing is doing just fine in every way except employment.

Other than that, Mrs. Lincoln, how was the play?

[snopercod]

The republican "leaders" have short memories, it seems. They are making the same fatal mistake they did in 1991 with their "The Economy Is Just Fine And All You Out Of Work People Are Just a Bunch of Whiners" program.

It is obvious that whoever is in charge of this suicidal campaign 1. must live on some other planet, or 2. has a secret plan to make Hillary Clinton the next president.

Bruce Bartlett's analogy to agriculture fails miserably for two reasons. First, American manufacturing is not automating to increase productutivity as did American agriculture in the last century. American manufacturing is closing up shop here and setting up shop there. They are moving their capital to somewhere that it can make a better return than here in America.

Secondly, you can't pack up 160 acres of prime farmland (the capital of farming) and ship it to Mexico like they are doing with the he Coats America thread plant just down the road from me.

My neighbor is a metalurgist for CooperTools. They are in the process of closing down their American plants and moving production to China. ("You wouldn't want to eat a great pig like this all at once", if you remember that joke.) Out of respect for their employees, CooperTools is making the transition as slowly as possible and still remain in business.

I have another friend who owns a machine shop in the Los Angeles area. He makes a lot of little widgets for the military. He told me the other night that they were very busy but were making less and less money. ("We need to buy a bigger truck", if you remember that joke.) Several of their big customers have told them that they will buy the parts they need in China if my friend's shop doesn't cut their prices to the bone. They are looking to sell the business (if they can).

I have a better analogy for American manufacturing than agriculture:

When an airplane is flying along and hits a wind shear, it doesn't fall out of the sky immediately; It's momentum keeps it going in the same direction for a precious little while. Everything seems to continue on normally for a few seconds, but during that time, immediate action must be taken by the pilots - adding full power, putting the nose down to pick up speed - or the wings will stall and the plane will auger in, taking the crew and passengers to their deaths.

The way I see it, American Air hit a big wind shear. It has been forecast for a while, but now the wings and tail are starting to shudder and the controls are getting mushy. The republican establishment up front in the cockpit has been too busy chatting with the stews to notice that something is wrong. Instead of adding full power by cutting corporate taxes and building up airspeed by cutting regulations, they tell us "Everything looks just fine out the front window. Besides, we don't really need airspeed, anyway. And oh by the way, would you bring me another cup of coffee, hon?"

As if America could prosper by selling each other Big Macs. Two all beef (imported from Argentina) patties, lettuce (grown in Mexico), (taxpayer-subsidized) cheese, pickles (from Europe), on a sesame seed (imported from Iran) bun (made in an EPA-approved bakery).

[FITZ]

The people who are put out of work can get things cheaper.

And there's another benefit. When an American doesn't have a job, he has more time to go shopping.

[FITZ]

My neighbor is a metalurgist for CooperTools. They are in the process of closing down their American plants and moving production to China.

We're shutting down our means of production ---it's one thing for a factory or assembly plant to have a temporary layoff ---- but when we shut down our tool and die shops, it's over.

[GladesGuru]

Re-read the numbers. American workers produce an average of $71,600 annually. Next best produces only $64,100 annually.

As they say on Radio Socialism, oops, National Public Radio - "Let's do the numbers".

An American is 11.7% more productive than his nearest competitor!

Perhaps there is a limit to how much people want? Just a possibility to consider.

[Stallone]

Slavery was involuntary, and overseas jobs are not.

Point is, make the environment conducive to business and business will happily stay, and America will prosper. It's simple - get the government out of our lives except where absolutely necessary, such as justice and maintaining the peace.

What do you suggest? Attach businesspeople to the government harness and force them to stay and work in America?

[Tauzero]

"when we shut down our tool and die shops, it's over."

Yep.

It's one thing to lose a machine.

It's quite another to lose the machine that makes the machine.