Can US Manufacturing Survive?

Discussion in 'Politics' started by kyzr, Aug 7, 2010.

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Can US manufacturing survive & how?

  1. No, cheap labor overseas wins, period.

    10 vote(s)
    50.0%
  2. Yes, but it will take a lot of government help

    2 vote(s)
    10.0%
  3. No, its the global economy stupid

    4 vote(s)
    20.0%
  4. Yes, consumers w/o jobs aren't consumers

    4 vote(s)
    20.0%
  1. kyzr
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    kyzr Gold Member

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    US Manufacturing used to be 28% of the US economy, and now its about 12% and dropping. Manuacturing creates wealth, the "service economy" is a hoax created by Wall Street to justify moving jobs overseas. I also blame unions in addition to Wall Street for killing industries like the automotive industry. Its a tough problem, but if we're ever going to get the unemploymemnt rate down, the unwashed masses need jobs, and I don't think that picking produce will pay the bills.

    Manufacturing continues to shrink as a percentage of U.S. economic activity. | North America > United States from AllBusiness.com

    So the poll question is "can US manufacturing survive & how?"
     
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  2. eagleseven
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    eagleseven Quod Erat Demonstrandum

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    No, it cannot.

    Every single manufacturing job in the US can be moved to China, and China would still have serious unemployment problems. We are completely outclassed by Asia's and Africa's low labor costs.

    If you cannot find a way to make a living that cannot be performed by poor Asian or African workers, you will be as poor as an Asian or African worker.
     
  3. Cuyo
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    Cuyo Training a Guineapig army

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    I picked "It will take a lot of government help" because it's closest to the way I feel, but doesn't exactly hit it on the head. A sudden and sustain spike in the price of oil would bring some of it back as the transportation costs begin to outweigh the difference in payroll. For cheap crap like toys and gadgets sold by Billy Mays (RIP), it may take a little longer. But for things like cars and steel products, the transportation expense could outweigh the benefit rather quickly if oil were to triple... Which it inevitably will.
     
  4. Toro
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    Toro Diamond Member

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    100 years ago, agriculture was nearly half the US economy. Today it is 3%.

    They said the same thing about farming a century ago.
     
  5. kyzr
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    kyzr Gold Member

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    Not quite. Look at the farm produce produced and you'll see thet the crop yields have grown due to modernization. Not a valid comparison. There were no PCs back then, no auto industry etc.

    the key to me is "creating wealth" such that the trade balance is "in balance" or in your favor. Otherwise, the producer/creators end up with all the wealth.
     
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  6. uscitizen
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    uscitizen Senior Member

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    And we now import virtually as much foodstuffs as we export.

    Exports were actually in the negative range a few years ago until the administration "massaged" the numbers a bit.
     
  7. eagleseven
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    eagleseven Quod Erat Demonstrandum

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    So shall it be with manufacturing, in the long run.

    Industrial yields are growing due to robotics, just as agriculture yields grew due to mechanization and chemistry.

    One can create wealth without manufacturing products...and trade balances are fundamentally individual, not national.

    ---

    Do you spend more than you earn, thus going into debt? If so, you are importing more than you are exporting.

    Do you spend less than you earn, thus saving money? If so, you are exporting more than you are importing.

    ---

    National trade figures are simply an amalgamation of millions of individual trade balances.
     
  8. uscitizen
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    uscitizen Senior Member

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    National trade figures are simply an amalgamation of millions of individual trade balances.


    True but knowing that does not make the trade imbalance any better.
     
  9. eagleseven
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    eagleseven Quod Erat Demonstrandum

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    Knowing that makes you realize that a national trade balance has no direct effect upon your life. It is an effect, not a cause.

    A trade imbalance can be caused by many different things...in our case, it is the result of our entire population spending more than it can earn.
     
  10. kyzr
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    kyzr Gold Member

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    Not exactly. If we all bought US manufcatured goods instead of foreign made goods what happens to your argument? Why don't politicians make tax breaks for creating US manufacturing jobs?
     

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