Despite China's might, US factories maintain edge

Discussion in 'Economy' started by Modbert, Feb 1, 2011.

  1. Modbert
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    Modbert Daydream Believer Supporting Member

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    Despite China's might, US factories maintain edge - Yahoo! News

    Well it is certainly good to see a net increase in workers for the first time in 13 years.
     
  2. uscitizen
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    uscitizen Senior Member

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    Who needs jobs, just more efficient factories.

    But it does not change the fact that we went from a creditor nation to a debtor one under Reagan and our economy depends abut 70% on consumer spending not manufacturing.
    And if consumers do not have jobs....
     
  3. Norman
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    Norman Gold Member

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    Fact is US trade deficit is mighty.

    So these numbers don't tell much, who knows how much US would manufacture without the chinese goods.

    Anyway this certainly does not prove the US in fine shape.

    Also economy can not depend on consumer spending, but production. Otherwise it would not even matter if those consumers had jobs - govt could just print money and send them to the consumers. The problem is the production, not the jobs. Obviously at some point the trade deficit is going to reverse itself, and that is a bad day to be american. Consumer spending being main portion of economy just means most of resources are used to make/buy current consumer goods and a lot less is used to find ways to make new better goods.
     
    Last edited: Feb 2, 2011
  4. william the wie
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    william the wie Gold Member

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    The question is what is going to happen when the China bubble popping blows up the EU bubble or vice versa? It will take about five years to open automated replacement factories to replace the factories that will close.
     

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