Replies

RE: “Manufacturing used to be the real kick starter to a down economy. Now we’ve moved a massive amount of it off-shore.”

I have two problems with that idea.

First, in the next few decades, automation and computer software will be the biggest enemy of employment in manufacturing, not outsourcing.

While that may be true, it has also been the claim for decades. It hasn't panned out yet. Equipment specialists will be required to service the machines. More jobs will be created to supply the materials for the machines. As for software, it will have to be developed. Wages are not what is holding back our software production. I would suggest it's another off-shoring issue.

Second, in 2012, the latest figures available, the USA exported $2.2 trillion of goods and services, which was equal to 14% of our GDP.

All well and good. This begs the question, how much more could we have exported if we weren't still supporting the money mainline to China?

If we decide to become Protectionist, other countries will do exactly the same thing.

Other countries do exactly that. It sure doesn't cause us to change out policies.

Not only will we lose millions of export jobs, but, in the short term, we will have no comparable home grown products to replace the products we block from foreign countries.

Yeah, right. Our corporations will simply refuse to sell products in the United States. LOL I think you know better than that.

It doesn't get better in the long term.

Has our homeland work environment improved or gotten worse over the last twenty years? What we are doing has not worked either. None the less, the changes that came about are still championed, even though they did not follow suit with the claims that were made when the decision to gutt our work force was implemented. China is not more friendly today. It has risen to be a real tangible threat to it's neighbors. Isn't this worth considering? Well..., of course not. We mustn't upset the manufacturing pipeline with China, no matter what it does. You guys just aren't honest about this.

If you own an USA company, and you are completely protected from foreign competition, you will immediately raise your prices, and, most likely, you will be less concerned about the quality and innovation of your products since American consumers will have fewer companies to buy from.

I believe you would have to raise your prices to an extent. It remains to be seen exactly how much. Shipping fees, moving parts to and from China, paying for labor over there, and the problems that go with trade with China, should cause us to at least consider a change. Frankly you can't buy anything that's worth a damn from China. None of it lasts. It's cheap, back-asswards when it comes to controls. The manuals are a joke. You get what you pay for, and replace everything in a few years due to corrosion and other considerations.

I've bought several computers out of China that I wound up throwing in the dumpster within a very short time of purchasing them.

As for quality being less in the U. S., surely you jest. Innovation..., since when? When the United States was manufacturing products they were equally innovative, and they would last for a good decade or more.

RE: “[Automation and software] have not panned out yet.”

I disagree.

Peak manufacturing employment was about 20 million in 1979.

Today, it’s about 11 million.

Adjusted for inflation, a worker today produces 3 times more value than a worker in 1979.

In other words, with half the workforce, we are producing 50% more goods than we did in 1979.

RE: “This begs the question, how much more could we have exported if we weren’t still supporting the money mainline to China?”

I don’t understand your answer.

If all countries are Protectionist, there will be no exports, from any country.

RE: “Yeah, right. Our corporations will simply refuse to sell products in the United States. LOL I think you know better than that.”

You don’t understand my answer.

We imported $2.7 trillion in manufactured goods in 2012.

Almost none of those goods are manufactured in the USA.

It would take years, and hundreds of billions of dollars in investment to meet that demand, and most of those goods would be low profit margin goods.

USA corporations would never invest in that unless they had an iron clad guarantee that no imports would ever be allowed.

RE: “Price increases.”

Again, you did not understand my answer.

What is the first thing a business owner does if one of his competitors leaves the business?

He raises his prices.

For mass produced goods, when competition is reduced, prices go up, and quality goes down.