I think the unfortunate end state from that line of thinking, is that the US as a country is a 'zombie', a hollowed out shell, where there are no industries left. The US can't compete purely on cost. We don't have the numbers of people, or education to keep up with the world. We'll end up being just a few financial and IT companies that only have corporate headquarters here, and the bulk of the work is off shore.
Of course. I don't have any answers. Because I agree, protectionism creates "Boeing's". It's almost like global unfettered capitalism is un-stoppable and leading us to a dystopia of lowest bidder, cheapest labor possible.
> I think the unfortunate end state from that line of thinking, is that the US as a country is a 'zombie', a hollowed out shell, where there are no industries left.
An article from 2016, "Think nothing is made in America? Output has doubled in three decades":
Manufacturing share of GDP has declined, the number of jobs has declined (due to automation), but output is up. The US the second biggest country (16%) after China (32%):
You can't compete on cost when you demand things be regulated.
Take for example: Medicine, we mandate doctors go through ~11 years of education before they are qualified and then complain about the cost and say that we can get the procedure done in MX for cheaper. Of course, Med school starting at 17 and practicing at 25 is cheaper than what we do. https://www.reddit.com/r/premed/comments/1ddxrt2/considering...
I am not against regulation and safety, I think we should all have clean air and water safe medicine and good food. The only way for us in the west to get that however is to pay the cost.
If we aren't willing to pay the cost then what we are doing is robbing our children, not only of a future with a clean safe earth but also of their economic future as while their peers in lax countries will have to deal with the pollution they will also have work and knowledge.
There are lots of industries left, and the US is in general quite competitive. Yes wages are higher here, but we have the technology and capital to use advanced manufacturing techniques which reduce the amount of labor required to make things, so we don't need to rely on huge numbers of underpaid workers to make things economically. American wages are high because American workers are ridiculously productive.
Part of the problem may be the US dollar being the reserve currency. This increases the value of the dollar relative to other currencies, and makes our cost of production higher. The dollar itself crowds out exports, similar how with Dutch disease fossil fuels crowd out other exports.
The US has been competing on Quality and Safety. I assure you anyone working at the US factory is happy they are no longer at risk of nicknames like "lefty" or "stubby" - referring to the missing limbs that used to be common in some positions. If you don't work in manufacturing you may not care, but a lot of people still do.
Of course. I don't have any answers. Because I agree, protectionism creates "Boeing's". It's almost like global unfettered capitalism is un-stoppable and leading us to a dystopia of lowest bidder, cheapest labor possible.