2015 early?

[william the wie]

The tipping point for Chinese labor costs to rise to the point where it costs less to manufacture in North America than in China was supposed to happen in 2015 and turn the US back into net exporting country. It seem to have happened earlier than that by about two years with foreign investment in the US having become greater than that in China earlier this year. The increased employment effects of this transition are greater in Red states, PAN states in Mexico and Conservative dominated areas of Canada which should lead to compounding political effects. Is this a negative feedback loop that will avoid a bubble or a positive feedback loop that could lead not just to bubbles but secessionist movements?

 

[Moonglow]

All good things must come to an end.

 

[SteadyMercury]

Yup U.S. is a very attractive manufacturing source right now, but secessionist movements will remain the case of a very small minority making a whole lot of noise while accomplishing nothing.

 

[william the wie]

Yup U.S. is a very attractive manufacturing source right now, but secessionist movements will remain the case of a very small minority making a whole lot of noise while accomplishing nothing.

I don't expect it to start in the US but to spread from Mexico and Canada.

 

[B. Kidd]

Yup U.S. is a very attractive manufacturing source right now, but secessionist movements will remain the case of a very small minority making a whole lot of noise while accomplishing nothing.

I don't expect it to start in the US but to spread from Mexico and Canada.

The only things that spread into the U.S. from Mexico and Canada are drugs and hockey players.

 

[Freemason9]

The tipping point for Chinese labor costs to rise to the point where it costs less to manufacture in North America than in China was supposed to happen in 2015 and turn the US back into net exporting country. It seem to have happened earlier than that by about two years with foreign investment in the US having become greater than that in China earlier this year. The increased employment effects of this transition are greater in Red states, PAN states in Mexico and Conservative dominated areas of Canada which should lead to compounding political effects. Is this a negative feedback loop that will avoid a bubble or a positive feedback loop that could lead not just to bubbles but secessionist movements?

I don't see secessionist movements in politically "red" areas gaining ground. Although employment in certain industries is increasing in these politically conservative regions, it is because wages are relatively low compared to the rest of the country--and, since the workers don't make as much money, those states are actually more dependent upon the "blue" states for anti-poverty programs and welfare.

Most "red" states could never be self-supporting.