Thought the DP Community would find this interesting:
Thanks for posting.
Anything come from? With mining so highly regulated, in the USA, mining is an occupation of the past in most cases, where timber mills have closed because of "EPA" restrictions, where new small companies of all types are discouraged by foreign cheaper made products.
Take off the restrictions and return to Gold/Silver international money and the playing field automatically gets more level !
Until we return to sound currency and repeal the laws against industrial hemp, there will be no meaningful production in this country.
Its an insidious trap, they devalue the currency which could theoretically bring jobs back once we become as desperate as 3rd world nations but with the min wage increase that pretty much negates that possibility.
We all share this eternally evolving present moment- The past and future only exist as inconsequential mental fabrications.
Puff piece. Manufacturing will return to the US, but not because of cheap energy. It will most likely return do to the destruction of the Dollar. If China and Mexico won't take Dollar$, then we'll have to build the stuff ourselves.
Once we begin to build it ourselves, again, we will necessarily have to give the finger to the Gov't with regards to the thousands of competition limiting regulations that pushed work that we used to do overseas in the first place.
Look at the manufacturers the article shows creating this supposed boom. Centrally Planned manufacturing is not a key to success. The ability for Small and Medium sized companies to innovate and push the behemoths out of the way is the path to success.
Manufacturing will return, but it will be highly automated, which takes out the most expensive components in the process...labor.
As Obama continues to push for higher minimum wage and now is pushing for mandatory overtime pay for middle management (!) automation will accelerate the process of replacing costly human labor. In fact, the previously irreplaceable human jobs (lawyers, doctors, etc.) will start to see their jobs "threatened" with artificial intelligence and highly developed automation in the near future. This is an economic reality. When the cost of labor starts to exceed the cost of automation, labor will rapidly be replaced.
I don't think this is the right analysis of why jobs have left the country.
There are several European countries with much higher wages, much more regulation, and a much higher cost of doing business that somehow are very strong net exporters.
It isn't the only reason, but I think one of the reason we have this kind of trade imbalance was because the flawed Keynesian studies done in the 80s which strongly advocated for a reduction of tariffs and the implementation of free trade.
Plan for eliminating the national debt in 10-20 years:
Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a
Adam Smith advocated Tariffs on goods coming from abroad equal to the taxes and regulation costs placed on local manufacturing/services.
By reducing Tariffs of foreign goods the Central Planners of the US de facto made local companies less competitive by raising our costs/prices while reducing the foreign competition's. Manufacturing and services that could be delivered more cost effectively from outside the US won. The US Gov't has essentially driven the work offshore by ignoring Micro Economics.
So, what the Keynesian studies showed, in summary was this;
1) When you enact tarriffs that effectively favor the domestic industry, you have the downside in that real wealth does not go up by as much (as the provided good has not gone down in price). However, numbers like unemployment, savings, etc. remain high.
2) When you do not enact tarriffs and allow free trade, you get the best of both worlds. Real wealth goes up in the sense that the good costs less to acquire. At the same time, unemployment and savings remain high. Evidently, the people displaced by the domestic sector being unable to compete just found other "created" jobs.
The thing is, with 2), they were ignoring the causal relationship. The reason that jobs were created, was that as savings left the country via exports, the Federal government stepped in (Reagan) and engaged in deficit spending. This caused the net levels of savings to go up (especially as that was a decade where the Feds were really experimenting with no gold standard). At the same time, you had coincidental lower interest rates (greatly), causing credit expansion; this credit was often used to hire those displaced workers, at the expense of debt. Moreover, as savings leave a country, the general public will turn to debt in order to consume; this outwardly will make the economy look good, with the debt bubble looming in the background.
Basically, the argument for protectionist trade policy (and strong regulation of credit) is that you sacrifice increases in standard of living and real wealth in exchange for lower debt loads (more secure, safer growth).
Thanks for your feedback. I wonder if they see a future where off shoring to the US makes sense for some of the same reasons we have been off shoring to places like Mexico etc.....
that the quality of merchandise out of China and Mexico is horrible (in many instances). In some cases unusable - scrap.
That is not profitable for hose who thought cheap labor could make them even more obscenely wealthy.
The law cannot make a wicked person virtuous…God’s grace alone can accomplish such a thing.
Ron Paul - The Revolution
Setting a good example is a far better way to spread ideals than through force of arms. Ron Paul
As soon as Obama hears about this "boom" he'll squash it. We can't have people making money and not depending on the government.
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