This industry does not have the contractual (union) issues that the auto industry has so they should be able to weather the storm pretty well by eliminating the less profitable plants or product lines.
This industry does not have the contractual (union) issues that the auto industry has so they should be able to weather the storm pretty well by eliminating the less profitable plants or product lines.
aka overproduction the last time around. I have made comments on this forum to this effect, only to be pooh-poohed. My interpretation is relatively more sophisticated than the feted Meadows, however. It's not simply a case of manufacturers overinvesting in production capacity, it's a result of outsourcing, or more generally, cheap foreign labor, which has been pervasively incorporated into the US manufacturing base. ( Outsourcing technically refers to the contracting with other firms to do work formerly done internally, rather than the incorporation of foreign labor into the firm itself, which is widely practiced. ) This displaces US wage earners, and lowers the demand for products, even though these products are being produced more cheaply.
It's "the race to the bottom", and we're winning it.
oh please.
Its how the market makes adjustments. If you produce more than customers want, time to cut back.
That is not why the economy is tanking, more of a symptom
