Re:Why the tech sector may not solve America’s looming autom...
by adventured on Tuesday August 07, 2018 @01:37PM
(#17708728)
To add to this point, over the last 12 months the US has created the most manufacturing jobs since 1995. Manufacturing jobs had essentially declined non-stop from 1998 to 2011 (there was no recovery during the real estate bubble years of '03-'08).
That was supposed to be impossible. It was seemingly universally claimed by economists, industry pundits, stray talking heads on TV and armchair experts that manufacturing jobs were in permanent decline.
Instead, the US is in the middle of a manufacturing boom. That looks set to continue with at least three factors in the US favor: cheap, abundant energy; the cost of manufacturing in China continues to climb and has made the US a lot more cost competitive in contrast; a slowdown in the DC regulation monster; corporate tax cuts are a big deal for domestic manufacturing - as profit margins in manufacturing are typically modest - and the US is now tax competitive with the OECD median.
To paraphrase Buffett, you get rich making things, and you get poor buying things. The US used to be a potent example of that; China is the latest stellar example of it. The US desperately needs to reduce consumption and boost production + savings, in regards to the ratio in the economy.
That was supposed to be impossible. It was seemingly universally claimed by economists, industry pundits, stray talking heads on TV and armchair experts that manufacturing jobs were in permanent decline.
Instead, the US is in the middle of a manufacturing boom. That looks set to continue with at least three factors in the US favor: cheap, abundant energy; the cost of manufacturing in China continues to climb and has made the US a lot more cost competitive in contrast; a slowdown in the DC regulation monster; corporate tax cuts are a big deal for domestic manufacturing - as profit margins in manufacturing are typically modest - and the US is now tax competitive with the OECD median.
To paraphrase Buffett, you get rich making things, and you get poor buying things. The US used to be a potent example of that; China is the latest stellar example of it. The US desperately needs to reduce consumption and boost production + savings, in regards to the ratio in the economy.