19 Surprising Facts About the Deindustrialization of America

Seeking Alpha ^ | 09-26-2010 | Michael T. Snyder

[beebuster2000]

Collapse of Complex Societies !!!

been reading that, it is an immense important book.

failure of marginal return on complexity. translation: we went into iraq but didnt get the oil. now we are doomed.

[gogogodzilla]

We really need to take a look a how Germany manages to be the 2nd largest exporter in the world. Like us, they have powerful unions and a very strong ‘green’ movement. Also, like us they have something similar to NAFTA to deal with - ie: the EU. They also face the same pressure to relocate their business to low cost countries... and have been (to the low wage countries of eastern Europe).

Yet despite all that, they still have a large manufacturing industry that sets them as the 2nd largest exporter on earth.

So why can’t the US be #1, then?

[Mad Dawgg]

"We can't beat that wage, but we could beat that wage + shipping if we could build a new foundry in this country, run it with non-union labor, and not have to deal with the excessive taxes and regulations that we now have in this country. Environazis, over-regulation, unions, and taxes add up to make productive industry all but impossible in the US these days. "

This is the hidden problem most can't see.

First you have a Government backed entity that puts upward pressure on wages for the sake of filling Union Coffers. Next you have a host of government employees that a new business must pay to get started in business and then must continue to pay to keep doing business. (Government regulation and taxes are used to pay government employees)

So before the first actual employee is hired to work and produce a product millions of dollars are spent to pay people who have nothing to do with actually producing the product. So in essence we have priced ourselves out of the market before the plant is opened.

And what do the protectionists/unionists want for a remedy? They want even more government regulation to fix the problem created by government regulation.

hole + /digging

[RS_Rider]

How about national defense?
Do you think that it might be a little difficult to fight a war against China when they make most of what we would need?
I’m not saying that we should not embrace automation and service skills but we should not let ourselves get into the position that we are unable to defend ourselves.

[Toddsterpatriot]

During the period from WW2 to 1975, we were considered to be about 85% production based, 15% service based.

You have any backup for this claim? Or did you just pull it out of your ear?

[Western Phil]

It is true that we have become a “service” based economy, when we were formerly known as a production based economy.

80 to 100 years ago a good portion of the "service" economy was house maids and butlers.

[beebuster2000]

not sure on that but i would bet that we still make our own weps pretty much except for the small stuff. the Abrams tank plant is in Ohio where i was referencing.

not sure ont hat though but as dumb as the govt is i hope they arent that dumb.

[beebuster2000]

Turns out that waste paper actually is our biggest export. By volume. LOLOL

shoulda checked hot air as well

[I am Richard Brandon]

The single greatest enemy of USA industrialization is foreign workers who are paid $1 per day if they are lucky, and unionism.

[RS_Rider]

I have read that a large portion of the electronics that go into our military equipment is sourced from China. Although we assemble the equipment here we have put us into a position that we would quickly run out of parts and material if it came down to it. Steel making, casting and forging skills are not being maintained.

[PSYCHO-FREEP]

I heard it from a well known economist who was a guest on Rusty Humphrey's show, about two years ago. But, just look at the facts for yourself. Isn't it obvious?

[cripplecreek]

Certainly we can’t forget an education system that since the late 1970’s has been run by socialists whose goal is to turn their students into mush brained idiots with overreaching political correctness and the inability to teach anything useful that would instill self reliance.

You really hit that nail on the head. These poor kids are going to school thinking they'll learn physics, complex mathematics, and electrical engineering. Instead they walk away knowing that conservatives are ignernt trailer trash redneck multi millionaire bankers. (They aren't learning to reason)

I'm a 1982 high school dropout and can run circles areound many of today's college grads in a fairly wide range of subjects.

[Toddsterpatriot]

Yes, it’s obvious you have no backup for your claim.

[Yardstick]

The key being that the Chinese “union” has negotiated a rate of only about $20 a day for its skilled workers. That’s the kind of union that management can’t help but want to work with.

[wideawake]

The problems started when the Federal gubmint deviated from their role of promoting domestic tranquility to trying to provide domestic tranquility.

The Constitution says that one of it's purposes is to "insure domestic tranquility" (it would be "ensure" in 21st century English). Not "promote.". The language is much stronger than you claim.

[1rudeboy]

Yet despite all that, they still have a large manufacturing industry that sets them as the 2nd largest exporter on earth.

One big reason is that Germany does not tax items that its companies produce for export, and does not tax the profits that its companies earn overseas.

[ridesthemiles]

I have read that a large portion of the electronics that go into our military equipment is sourced from China”

Thank Bill Clinton & that Congress for that dumb move.

Clinton wanted to find the cheapest supplies!

He instead gave away our technology to our enemies.

[GLDNGUN]

Does anyone think that "free trade" such as NAFTA has played a part?

Wasn't one of the reasons that 13 colonies decided to band together over 200 years ago and become "united states" for an economic reason? To trade freely amongst ourselves (between states) but to impose tariffs on imports from other countries? And the tariffs would help protect and stimulate our domestic businesses and workers, while at the same time fund the federal government? And don't we now do just the opposite? Give "economic statehood" to foreign countries by imposing NO tax or tariff on them and taxing our own citizens and businesses instead to fund the federal government?

Or am I just crazy?

[frposty]

An excellent set of posts here!

[RS_Rider]

“Or am I just crazy?”

No, our government is crazy.
Manufacturing and industry is the root of wealth.