U.S. manufacturers are closing up shop and taking their businesses to Asia

The Sarasota Herald-Tribune ^ | February 24, 2003 | MICHAEL BRAGA

[Willie Green]

 U.S. Trade with China 
(billion dollars)

Year		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002
U.S. Imports		19.0		25.7		31.5		38.8		45.5		51.5		62.6		71.2		81.8		100.1		102.3		125.1
U.S. Exports		6.3		7.4		8.8		9.3		11.7		12.0		12.9		14.2		13.1		16.3		19.2		22.0
Trade Deficit		12.7		18.3		22.7		29.5		33.8		39.5		49.7		56.9		68.7		83.8		83.1		103.1

Fundamentally, we believe that the U.S. government needs to devote more resources and put in place new programs to build wider expertise about China and to protect our industrial base from eroding as a result of our economic relations with China.

-- C. Richard D’Amato, chairman
U.S.-China Security Review Commission
(How to improve U.S.-China relations )

George W. Bush is proving to be more adept at destroying America's industrial infrastructure than he is at destroying Iraq's.

[DoughtyOne]

Are you sure this wasn't an article from 1993? LOL, this paper sure is cutting edge.

[Question_Assumptions]

Making or selling commodity goods that anyone can produce is never safe. This is true even with domestic competition. I think that valve manufacterer has the right idea. Most of the things still produced domestically are things that aren't easily produced overseas.

[Alberta's Child]

What is interesting about the decline of manufacturing in the U.S. is that it was actually a two-step process. Step #1 was the migration of manufacturing jobs from the Northeast and Rust Belt states to the South. Step #2 is the migration from the U.S. to overseas.

And the driving force behind both steps in the process has been the same -- the search for cheaper labor, less regulation, etc.

[sit-rep]

Here ya go...

[First_Salute]

Bump.

[Calpernia]

< interjects humor >

Joe Smith started the day early having set his alarm clock (MADE IN JAPAN) for 6 a.m. While his coffeepot (MADE IN CHINA) was perking, he shaved with his electric razor (MADE IN HONG KONG). He put on! a dress shirt (MADE IN SRI LANKA), designer jeans (MADE IN SINGAPORE) and tennis shoes (MADE IN KOREA). After cooking his breakfast in his new electric skillet (MADE IN INDIA) he sat down with his calculator (MADE IN MEXICO) to see how much he could spend today. After setting his watch (MADE IN TAIWAN) to the
radio (MADE IN INDIA) he got in his car (MADE IN GERMANY) and continued his search for a good paying AMERICAN JOB. At the end of yet another discouraging and fruitless day, Joe decided to relax for a while. He put on his sandals (MADE IN BRAZIL) poured himself a glass of wine (MADE IN FRANCE) and turned on his TV (MADE IN INDONESIA), and then wondered why he can't find a good paying job in.....AMERICA.....

[DoughtyOne]

You forgot to mention that Joe is 57. His life savings have been spent while he searched for that job, and it will be next to impossible for him to retire in eight years.

Of course you'll be reminded that K-Mart and McDonalds are still hiring. LMAO, what a country...

[JmyBryan]

"If you want to set up a factory in China, a government official will help you get that factory up in three months," said SAMA's Straw. "That official's sole mission is to make it happen. He will clear the way rather than set up obstacles."

Of course, this has nothing to do with it.

[joesnuffy]

And having a "thug" govt. watching over your interests doesn't hoit either so you dont have to worry about any unexpected "problems" that may arrise...and....best of all....

All these Americans with their fingers in your pie....wont complain or raise a hand to hurt you
at home or abroad..
.
You can take over Panama build huge container ports and giant airstrips just miles off America's coast...If you like you can smuggle pretty much what ever you like through Mexico.. you can supply weapons or move drugs into and out of south and central America and Mexico..you can support communists regimes (why wouldnt you they are after all your kith n kin) and the Americans who benefit will not lift a finger to stop you ...hell they will even lean on their own leaders and press to do the same..even while you supply N Korea who in turn can supply the Middle East terrorists...

Yep China you got it made..

[Gunslingr3]

Making or selling commodity goods that anyone can produce is never safe. This is true even with domestic competition. I think that valve manufacterer has the right idea. Most of the things still produced domestically are things that aren't easily produced overseas.

It's called comparative advantage, and is the force behind specialization of labor. It allows for the ever greater creation of wealth by finding more efficient uses for existing labor. The people trying to stymy this process can see 300 jobs 'lost' from a plant closing in one location, but they can't see the thousands or millions who benefit from lower prices, in addition to the people who 'found' the 'lost' jobs, so for them this is always a pernicious development. Their philosophical ancestor is the Luddite or the original saboteur.

[RCW2001]

extended bttt...

[Willie Green]

It's called comparative advantage, and is the force behind specialization of labor. It allows for the ever greater creation of wealth by finding more efficient uses for existing labor.

In his treatise on "comparative advantage", "free" trade deity David Ricardo also asserted that the cost of labor stabilizes at the subsistance level.

"Comparative advantage" has nothing to do with "specialization of labor". It is more concerned with "optimization" of resources (such as labor) by driving them to minimum cost.

[walkingdead]

"But the best approach would be to talk to the Chinese and let them know how their policies are impacting U.S. manufacturers and convince them of the need to change," Morici said.

I'm pretty sure the Chinese are well aware of how this is impacting the U.S. As a matter of fact, I'm quite sure their military is counting on it. It's hard to make war vehicles, when you've contracted out all your assembly work to the enemy.

"I'd love to shoot down that Chinese fighter, it's just I need to get my replacement trigger grouping, and it's not gonna get here from China for another week....."

[Willie Green]

Their philosophical ancestor is the Luddite or the original saboteur.

Not true.
"Luddites" were opposed to technological innovation that made production labor more efficient.
This is philosophicly different than simply undercutting wage rates with cheaper labor utilizing equivalent (or even more antiquated / labor intensive) technology.

[walkingdead]

Oh, and we can all thank labor unions for driving the price of assembly work in the U.S. through the roof. A starting engineer makes less than a kid just outta high school bucking rivets down on the floor where I work. Unacceptable.... and if that wasn't enough, engineering work is being sent to MOSCOW.

[Free the USA]

http://www.freerepublic.com/perl/bump-list

[GingisK]

...but they can't see the thousands or millions who benefit from lower prices...

You'll understand all of this once it is YOUR job that is exported to twenty people in China or India.

[Campion]

The people trying to stymy this process can see 300 jobs 'lost' from a plant closing in one location, but they can't see the thousands or millions who benefit from lower prices

Those prices have to be pretty darn cheap for the unemployed to be able to afford them.

in addition to the people who 'found' the 'lost' jobs

They're in India or China or Mexico, not in the US.

[Gunslingr3]

"Comparative advantage" has nothing to do with "specialization of labor". It is more concerned with "optimization" of resources (such as labor) by driving them to minimum cost.

Isn't specialization of labor optimizing the available labor pool? Isn't comparative advantage optimizing the production of goods and services by recognizing some locations have better access to the required production components (whether it's natural or labor resources)? Productivity is more pivotal than "minimum cost". If minimum cost is what mattered you could produce just 1 unit, close the shop, and your costs would be very low indeed, but it wouldn't make you much money.