Is the US Losing Its Manufacturing Base?

Federal Reserve Chicago ^ | 2003? | William Strauss-Chicago Fed Economist

[shrinkermd]

This is a series of slides done by the Chicago Federal Reserve. You can go through them quickly and see some interesting information.

A summary of these slides is as follows:

• Manufacturing in the US has never been higher.

• Success in manufacturing is due to massive increases in productivity.

• Productivity has changed the nature of the workforce.

• The profit margin for manufacturing exceeds that of other industries.

• Future projections include increasing manufacturing output with fewer and fewer employees needed.

[FightThePower!]

The loss of having the dollar as the worlds reserve currency will happen by the rules of supply and demand. Each marginal dollar means less and less. When the dollar crashes the price of everything will double, or tripple anyway. The government can do it via tarrifs or the market will handle it. If the government handles it. We will have goods made here. If the colapse of the dollar causes it we are screwed.

[truthguy]

{...We’re build the expensive stuff, not the cheap stuff. I’d rather we make our $15 trillion GDP on airplanes and OSes and modern medicines than stamping forks and molding Happy Meal toys}

If things are so great why are we running such fantastic trace deficits?

[Cringing Negativism Network]

Oh?

Wonder how long “your” factory, “your” car, or “your” apartment would remain “yours”, if you were to advocate a trade policy opposite of the one, you are...

At the moment, you are serving a purpose to your adopted government.

Doesn’t that alone, cause you to think sometimes?

[unspun]

Yes. And all those factories are joint ventures, and at the end of the day BELONG to the Chinese government. All of it. We’ve given away our nation. Time to stop. If it means you need to come back and make speakers in Topeka, well then sorry. You’ll just have to get a real job.

A Post of the Day

[truthguy]

Sorry bad typing on clumsy laptop keyboard. I meant to say trade deficits.

[Dan Cooper]

Why can’t i find products made in the USA?

Not looking hard enough?

Buy American Mart
Still Made In the USA
US Stuff
Americans at Work

There are lots of small companies that manufacture goods in the USA. Even under a growing burden of regulations Americans can still start small businesses and succeed.

[PugetSoundSoldier]

Read about Milton Friedman and his take on trade deficits.

Also note that Friedman and his Chicago colleagues set up the Chilean economy when Pinochet asked them how to modernize Chile. Chile is probably the most vibrant economy in the Americas, definitely the strongest in South and Central America.

Friedman has it right - the trade deficit is correcting becuse free markets are doing so. Protectionist demands will do nothing but make the situation worse.

[PugetSoundSoldier]

Huh? You must not read the China Daily, or the local Shanghai papers... There’s regular criticism of the government even worse than the paper tirades of Helen Thomas against the Bush Administration. And yet people aren’t shot, property not confiscated. And I have complained to the local government over a few boneheaded issues and actually go speedy service - better than usual treatment you get in the US.

Maybe China isn’t what you think it is? Maybe, just maybe, China’s changed from the stereotype most have, set back in the 50s, 60s, and 70s?

[PugetSoundSoldier]

If the “protectionist fair traders” really wanted to see “Made in America” on products, they’d demand their government get off the backs of companies. I know, I used to run a business in the US and over time it simply got to be too expensive. It’s much cheaper to do business overseas and import.

These “shut the doors, build it here!” folks need to first unleash businesses here. Push for reform of the way government AND society looks at businesses (including the “money accumulates to the few!” socialists posting in this thread) and you’ll see businesses move back because it will be a lower cost option.

Slamming the doors shut will not only hurt the capital flow from US companies working overseas, but hurt every person living in America by increasing their cost of living.

[Last Dakotan]

We still can make tools; for crying out loud we DESIGN the things!

We don't.

Machine Tool Trade Balance
Country $-Millions 2007 2006
1. Japan 6,824.1 5,699.0
2. Germany 5,473.3 4,980.6
3. Italy 2,216.7 1,921.3
4. Switzerland 2,041.0 1,882.5
5. Taiwan 593.0 954.0
6. Korea, Rep. of 400.0 92.0
7. Austria 228.5 91.7
8. Spain 175.9 121.8
9. Finland 106.7 87.7
10. Czech Republic 24.7 17.1
11. Netherlands 13.3 11.0
12. Denmark -41.0 -47.6
13. Portugal -56.8 -49.6
14. Croatia -61.0 -61.0
15. Sweden -105.4 -117.4
16. Argentina -132.0 -116.6
17. Belgium -139.0 -79.8
18. Australia -210.0 -223.0
19. Romania -244.0 -192.4
20. United Kingdom -256.1 -42.4
21. Russia -399.5 -422.0
22. France -533.6 -431.1
23. Canada -610.3 -593.4
24. Turkey -628.7 -640.9
25. Brazil -664.4 -466.3
26. India -1,291.2 -820.6
27. Mexico -1,503.2 -1,123.5
28. United States -2,593.8 -2,672.3
29. China, Peoples Rep. -5,300.0 -6,053.0
Source: Gardner Publications, Inc. Trade Balance is Exports minus Imports

[Cringing Negativism Network]

“Huh? You must not read the China Daily, or the local Shanghai papers... “

-

The China Daily is a government-run English language paper for foreigners.

What happens there, is inconsequential. No more impacting most citizens, than criticism of George Bush on the pages of “La Opinion”.

You will not read the same things, in Peoples Daily.

You won’t.

[org.whodat]

Stayed at the holiday inn last night as well did you.

[pissant]

Even the apologists in the US State Dept. know private property means little to the chicoms.

U.S.: China Has High Rate of Intellectual Property Infringement

http://usinfo.state.gov/usinfo/Archive/2005/Apr/29-580129.html

Malaysia, China among worst piracy offenders

http://www.gamespot.com/news/6118497.html

Protestant Pastor in China Convicted for Printing, Distributing Bibles

http://www.washingtonpost.com/wp-dyn/content/article/2005/11/08/AR2005110800607.html

The big steal

http://www.guardian.co.uk/world/2006/may/27/china.comment

Property Seizure Rampant in China’s Hangzhou

http://video.aol.com/video-detail/property-seizure-rampant-in-chinas-hangzhou/2134656583

[Eaker]

The biggest thing to me is the fact that the cheap shit from China is just that.

Cheap shit.

Our 25 year old toaster finally died. American made.

The best we could find was indeed cheap, but it is indeed a piece of shit and may last a year or two. Same with the blender.

I don’t want to have to buy a new cheap toaster every year. I would like to just pay more and get one that will last.

Chinese products are cheap and one gets what one pays for.

Chinese = crap.

[durasell]

Maybe, just maybe, China’s changed from the stereotype most have, set back in the 50s, 60s, and 70s?

---

Tiananmen Square protests of 1989

[org.whodat]

Maybe China isn’t what you think it is? Maybe, just maybe, China’s changed from the stereotype most have, set back in the 50s, 60s, and 70s?

There is not one damn thing the Chinese make that they will not cut corners on, not one. If it calls for three coatings they will do two. Never ending line of junk.

[pissant]

Don’t bother Mr. utopian with the facts. He does not care that the US is handing the world all the technology and manufacturing prowess it has built up over 100 years, just so he can make his crap there cheaper. Global citizen, don’t you know.

[durasell]

Dualit Vario 2 Slices Toaster — great toaster. Cost: Approximately $200.

[truthguy]

If it is correcting, why has it not corrected. We have been running trade deficits for what seems like forever. I know that much of it is due to oil imports.
Besides what about those who need to work in Manufacturing. Everyone cannot be a software engineer. Even if you are a software engineer (and I know many) you cannot do it much past 40.

[1COUNTER-MORTER-68]

NO`CHI'NNE`EZZ FUD!!!!