Indeed. We should not confuse manual labor with manufacturing.
Some assorted observations:
1. Most services are dependent on the use of manufactured goods.
2. Trade exists precisely, because no domestic economy is entirely self-sufficient with respect to the demands of its market. However, when manufacturing is entirely outsourced, you become somewhat of an economic rump state. In the best case, you are now an administrator of manufacturing possessions somewhat like a colonial overseer. This creates a condition of economic imperialism rather than one of economic exchange. It creates incentives to capture the political systems of foreign countries and to depress standards of living in order to maintain low costs.
3. When everything is imported, then the only thing you can exchange for them are services. The alternative is printing fiat money or borrowing.
4. When manufacturing is moved abroad, experience and expertise withers and dies. Entire supply chains and intertwined sectors of industry fade. This creates an economic and even political dependence that goes beyond the mere inability of manufacture. As technology becomes increasingly complex, this creates security exposure. The interdependence of these supply chains is nontrivial.
5. Manufacturing is a basis for technological development. This is the result of not just manufacturing capacity, but the combined and communicated expertise that manufacturing enables and propagates. Once a tradition of expertise dies, it is difficult or impractical to replace.
6. Domestic manufacturing creates redundancy that buffers both the domestic economy and the global economy against single points of failure. It also helps drive prices down.
Some assorted observations:
1. Most services are dependent on the use of manufactured goods.
2. Trade exists precisely, because no domestic economy is entirely self-sufficient with respect to the demands of its market. However, when manufacturing is entirely outsourced, you become somewhat of an economic rump state. In the best case, you are now an administrator of manufacturing possessions somewhat like a colonial overseer. This creates a condition of economic imperialism rather than one of economic exchange. It creates incentives to capture the political systems of foreign countries and to depress standards of living in order to maintain low costs.
3. When everything is imported, then the only thing you can exchange for them are services. The alternative is printing fiat money or borrowing.
4. When manufacturing is moved abroad, experience and expertise withers and dies. Entire supply chains and intertwined sectors of industry fade. This creates an economic and even political dependence that goes beyond the mere inability of manufacture. As technology becomes increasingly complex, this creates security exposure. The interdependence of these supply chains is nontrivial.
5. Manufacturing is a basis for technological development. This is the result of not just manufacturing capacity, but the combined and communicated expertise that manufacturing enables and propagates. Once a tradition of expertise dies, it is difficult or impractical to replace.
6. Domestic manufacturing creates redundancy that buffers both the domestic economy and the global economy against single points of failure. It also helps drive prices down.