Despite China's might, US factories maintain edge

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

  1. Modbert
    Offline

    Modbert Daydream Believer Supporting Member

    Joined:
    Sep 2, 2008
    Messages:
    33,178
    Thanks Received:
    2,957
    Trophy Points:
    48
    Ratings:
    +2,962
    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
    Offline

    uscitizen Senior Member

    Joined:
    May 6, 2007
    Messages:
    45,941
    Thanks Received:
    4,791
    Trophy Points:
    48
    Location:
    My Shack
    Ratings:
    +4,807
    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
    Offline

    Norman Gold Member

    Joined:
    Sep 24, 2010
    Messages:
    6,495
    Thanks Received:
    983
    Trophy Points:
    280
    Ratings:
    +5,974
    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
    Offline

    william the wie Gold Member

    Joined:
    Nov 18, 2009
    Messages:
    7,325
    Thanks Received:
    677
    Trophy Points:
    175
    Ratings:
    +1,632
    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.
     

Share This Page