Goodbye, Production (and Maybe Innovation)

The New York Times ^ | December 24, 2006 | Louis Uchitelle

[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."

[...]

[american colleen]

Also the rising EPA standards dealt a death blow.

Just rode through Ohio and passed lots of empty steel mills. The mills that made the steel are out of business because it's cheaper to import the steel from Japan (or China).

[RFT1]

What you seem to advocate, along with other people who share your viewpoint, is "Freedom" without ANY responsibility.Ironically, your so called "Freedom" will diminish in the next few years as working class conservatives continue to abandon the GOP as they become more economically stressed. All I can say is enjoy your new Health Security payroll tax that will be coming.

[EternalVigilance]

The Value-Added Tax is NOT the solution to anything. It amounts to just another hidden form of taxation, prone to tinkering by politicians with little accountibility.

A retail sales tax is the only viable and sensible solution.

[1rudeboy]

Has anybody pointed to the biggest elephant in the room, i.e. the stupidity of way we tax ourselves?

It took the longest while, but finally somebody did. "Free-traders" dislike pointing out the obvious, and "protectionists," frankly, are in denial.

[1rudeboy]

There is no Free Lunch despite what the likes of Kudlow claims.

Best not bring into discussion concepts you cannot apply in practise, much less attribute to others.

[1rudeboy]

What you seem to advocate, along with other people who share your viewpoint, is "Freedom" without ANY responsibility.Ironically, your so called "Freedom" will diminish in the next few years as working class conservatives continue to abandon the GOP as they become more economically stressed. All I can say is enjoy your new Health Security payroll tax that will be coming.

Interesting argument. We should give up some of our freedom now, lest it be taken away in the future?

[Toddsterpatriot]

What you seem to advocate, along with other people who share your viewpoint, is "Freedom" without ANY responsibility.

So the government will force me to be responsible? That's funny!

Ironically, your so called "Freedom" will diminish in the next few years as working class conservatives continue to abandon the GOP as they become more economically stressed.

Socialism now! To save us from socialism later. Got it.

All I can say is enjoy your new Health Security payroll tax that will be coming.

Right back atcha!

[BipolarBob]

The Global Economy is here to stay regardless of your delusional belief.

I have no delusions. The Global Economy is here. It will have a tendency to equalize standards of living. Some (ours)will decrease and others increase.

[durasell]

Yes, you're probably right, but only assuming political ideologies of the two parties remain static.

[MARTIAL MONK]

My company died, I found a new employer. The process has repeated three times.

There's your answer. It's not Wal-Mart it's YOU. =)

[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.

[RFT1]

You have had this explained to you by many other posters, but let me re state this, tariffs, somthing that is mentioned in the constituion itself(unlike the income tax) are not Socialistic. Also the govrenmnet from the founding of this nation has never been all about "free markets", even in the beginning, they set forth to make sure the poeple did their part to be responsible.

That said, if you put more stress on the Middle Class, they will vote for those who will take more and more of your "freedom" away. Anyways, the "logic" of your crowd is very much so lacking, you seem to worship your concept of "free markets" above all else. Well guess what, your crew is a political minority.

[TN4Liberty]

"What is your definition of wealth?"

We throw away broken computers with more horsepower than major corporations had in 1975.

Our poor drive cars with technology that doesn't exist in much of the world.

Our houses are 30% bigger than they were 30 years ago. My small town has dozens of houses bigger than Monticello.

We donate more to charity as individuals than any nation on earth.

Yes, as a people, we are very wealthy.

[RFT1]

Very true, but in the GOP, due to how the GOP gets its capaign funds, there are many forces that will strongly be against any re eveluation of "free trade" at all and any costs.

That said, I do think there will be a re eveluation of sorts when all other sorts of taxes impact the GOP contributors bottom line.

[durasell]

I will make a prediction I can back with 100% assurance: things change.

[Toddsterpatriot]

You were responding to my post:

Yeah, those damn businesses deciding who to hire and where. Next thing you know they'll be deciding what to make and how much to sell it for. All this freedom, what are we thinking?

I guess businesses have too much freedom. I guess you want to restrict that freedom. No socialism there.

Anyways, the "logic" of your crowd is very much so lacking, you seem to worship your concept of "free markets" above all else.

Let me guess, you want to take things away from us, for the common good?

[patton]

Depending on where you live, of course, the rules can be pretty harsh.

Just about everywhere, exposing the studs requires bringing the framing up to code - fire stops, etc.

So a reinsulation job (plaster out) requires reframing. All of it has to be brought up to code, and...well, they don't make 'em like they used to (thank god). I have seen some 1950's house framing that would not pass for a doghouse.

In CA, this means you also have to meet earthquake code - bolting, anchors, rebars, etc.

Cheaper to knock it down and start over.

[servantboy777]

"I get upset when prople start into "the Greedy CEO" BS, without looking at the REAL CAUSES of job flight...."

What you mention is certainly part of the equation, but to simply disregard greed on the part of corporate America is just deceptive at best.

America first has become America flushed. The bottom line is the name of the game now-days.

I have been a part of a large corporation for almost twenty years.... my how things have changed.

While the company has enjoyed record profits, billions in cash sitting in the bank, pensions have been eliminated, health care cut, pay increases frozen, job cuts every several months. All the while corporate execs shower themselves with favor.

Millions in stock, bonuses, salaries, perks while the average Joe six pack takes the hit, every time.

When the CEO fails to perform...there booted, but not before they walk away with millions in exit payouts.

It's shameful.

[servantboy777]

Wealthier??? I guess it's all how ya look at it and who's got the wealth.

The research data I see paints a not so rosy picture.

Record budget and trade deficits while our competitors enjoy record surpluses and record double digit economic growth.

Foreign countries such as China "our partners in trade" manipulating their monetary policy in an effort to weaken ours.

The devaluation of the dollar and a shift to the Euro as the currency of choice. Huge amounts of American debt held by foreign countries such as China.

Well paying manufacturing sector positions being substituted for lower paying service sector positions throughout the economy.

Looming social security and other entitlement programs such as Medicare in crisis as record numbers of Americans begin to retire.

Immigration (legal and illegal)out of control and threatening to add another twenty to forty million new people to the census of this country by 2020.

Latest figures I've researched show the average upper middle income American pays around 46% of their annual income in some sort of state, federal, local fee, tax or levy. By the way, get ready, taxes are fixin to go up.

Wages are being scaled back if not frozen, pensions are disappearing, health care cost sky rocketing, whole industries being exported to foreign countries.

Trade negotiations so lopsided in favor of foreign interest it's down right shameful.

Corruption running rampant in all aspects of government. Hell, I can't even tell the difference between the Republicans and Democrats anymore.

I'd say there's allot of work to do.

[GregoryFul]

Do you want to return to the days of a gold standard? Because we had no inflation or deflation back then?

I would like to see our government back our currency by gold and silver - as is mandated in the Constitution. A US silver dollar (junk coin) today is worth $12-$13 today. In the fifties people used silver coinage. If the government stuck to its business and coined money, rather than just printed it at an inflationary rate we would not have been subject to the inflation of the past 50 years. People would not be paying "capital gains" taxes on phony increases in "value" of their property. Bosses couldn't get away with giving below inflation rate "raises" to keep their employees happy. Oil wouldn't cost $60 per barrel. Retired people wouldn't be faced with the prospect of being taxed out of their homes, in addition to having to suffer the government continuously shaving of their fixed income savings.

It is dishonest government policy to purposely inflate our currency, it cheats and robs the people, but that is being done.