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The main promise of globalization, at the time of NAFTA and other free trade agreements with China and the rest of the world, was that China and the world would open up their markets to US, and that American companies can sell more to the world.
Well, 20 years later, what China and Mexico and the rest of the world got out of globalization is very clear -- Most American manufacturing went to China and Mexico, who sold the manufactured goods back to US. And US had a tremendous net trade deficit with them all these years.
What had US companies sold more to to China? Can someone name specific companies that benefited from free trades with China and Mexico? I can name one: Apple (even though iPhone is also made in China). What else are there? I am curious who benefited at the expense of American workers.
The main promise of globalization, at the time of NAFTA and other free trade agreements with China and the rest of the world, was that China and the world would open up their markets to US, and that American companies can sell more to the world.
Well, 20 years later, what China and Mexico and the rest of the world got out of globalization is very clear -- Most American manufacturing went to China and Mexico, who sold the manufactured goods back to US. And US had a tremendous net trade deficit with them all these years.
What had US companies sold more to to China? Can someone name specific companies that benefited from free trades with China and Mexico? I can name one: Apple (even though iPhone is also made in China). What else are there? I am curious who benefited at the expense of American workers.
Any business connected to importation from China benefited, along with their consumers. I don't know specific company names.
"China was the United States' largest supplier of goods imports in 2016.
U.S. goods imports from China totaled $462.8 billion in 2016, down 4.2% ($20.4 billion) from 2015, but up 60.8% from 2006. U.S. imports from are up 353% from 2001 (pre-WTO accession).
The top import categories (2-digit HS) in 2016 were: electrical machinery ($129 billion), machinery ($97 billion), furniture and bedding ($29 billion), toys and sports equipment ($24 billion), and footwear ($15 billion).
U.S. imports of agricultural products from China totaled $4.3 billion in 2016, our 3rd largest supplier of agricultural imports. Leading categories include: processed fruit & vegetables ($1.1 billion), fruit & vegetable juices ($328 million), snack foods ($213 million), fresh vegetables ($205 million), and tea, incl herb ($152 million).
U.S. imports of services from China were an estimated $16.1 billion in 2016, 6.6% ($993 million) more than 2015, and 58.8% greater than 2006 levels. It was up roughly 350% from 2001 (pre-WTO accession). Leading services imports from China to the U.S., in 2015, were in the transport, travel, and research and development sectors."
The reason is simple, making cars and steels are simple labor work. Those work can be done for a wage of $0.50 per hour, with good quality ($15 per hour isn't any better). More importantly, the manufacturing capacity must be in place -- equipments and labor force must be in place. Rust Belt has been rusted for long, the capacity is gone.
The reason is simple, making cars and steels are simple labor work. Those work can be done for a wage of $0.50 per hour, with good quality ($15 per hour isn't any better). More importantly, the manufacturing capacity must be in place -- equipments and labor force must be in place. Rust Belt has been rusted for long, the capacity is gone.
This. Even though I am from the Rust Belt, between the labor unions and the fact that the economies were too heavily entrenched into manufacturing that ship has sailed, and for a very good reason. That old labor that required a sixth grade education, for that price, is old news.
And it is never coming back.
There will be manufacturing in the US going forward, but it will never be what it was back in the 50s. I'm not even sure that it should be. Not to say that I agree with some of the labor conditions in China but even if workers can command a fair wage and conditions improve, I seriously doubt that it will ever get back to $15 an hour, $30 an hour, $100 an hour, like it was back in the 60s and 70s when Detroit was on top.
It was good money if you could get it but all good things come to an end.
The promise of globalization, is maximizing efficiency. Labor that's least-skilled and most-commoditized, goes to the very poorest and most backward countries, subject to an infusion of capital and know-how... and assuming, of course, stable governance, adherence to property-rights, transparent taxation and free trade. Labor that's most esoteric and specialized, goes to the wealthiest countries.
The US remains the world's principal source for technological innovation and scientific research. While many (most?) of the innovators are not themselves American-born, they come here to get a graduate-degree, to pursue a career and to contribute. While many (most?) patent-applicants are not American, the American patent system is the world's standard. This is the place to write scripts, and to film movies; the place to publish books; the place to develop new products, to write marketing-campaigns for them, and to promulgate them worldwide.
America is the coffeehouse to the world: the place where sojourners and creatives gather, exchange ideas, find sustenance. The promise of globalization is to keep that coffeehouse open.
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