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If American manufacturing was protected from wage, benefit and environmental cost differentials by proper countervailing tariffs we would all prosper. Under current trade warfare we will eventually lose our production to increased unfair competition from the slave shops in the rest of the world.
I would not mind paying the cost of trousers made in the US because I would realize that the seamstress making the trousers was also making enough to buy whatever I was producing.
It's funny that my grandmother was a seamstress in NYC from 1920 to 1970 and she and my grandfather raised three children and make a comfortable living. Now those opportunities are gone.
One of the best ways to help assure a resurgence is to make oil very expensive. As we saw in mid-2008 when gas prices hit $5/gallon in some areas is that the cost to ship goods over the ocean via steamship became hugely expensive. In response to high shipping costs, firms doing business here began putting manufacturing plants here, and I recall one specific firm in Europe building a furniture plant in VA to make it's product here.
If oil gets back up to those levels again, the early resurgence of things to be made here will be large bulky items, like furniture, that eat up lots of space in expensive ocean cargo containers. Then I'd look for large appliances, like pricey dishwashers, to be made here, etc. Increasing numbers of foreign cars would be made here too, especially since we have so many of our own plants sitting idle and the recent union contract adjustments make the UAW workforce essentially comparable to the non-union auto plants in the south.
Railroad networks in this country, though well short of the coverage I'd like to see, can distribute goods very efficiently and would aid any resurgence. Rail lines already serve most of the idled auto plants.
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Some of the stimulus money is dedicated to rail. When I read that I got my hopes up that the current freight/passenger lines would be updated.
Here in Texas we have Amtrak that can cover the state but it doesn't have it's own rail; has to share with freight and is subject to long delays because freight has the right of way on that track.
But Obama has specified it has to be high speed so that leaves out all the current lines as they are not built for high speed.
New lines need to be built and from what I read, the LA to Vegas high speed line is a contender for stimulus money. WTH..do we really need a high speed train to take gamblers from bankrupt CA to almost bankrupt Las Vegas ? Heck will there be anyone left in LA with money to even go ?
Amtrax can't even breakl even much less support itself. many jobs in manufacturing were on deaths door for years and will never come back .Things will just change basically to more technical items but a large percentage of the screwdriver jobs are gone forever.
I agree with you. Do you think the Chinese have ever heard of the Triangle Shirtwaist Factory Fire in 1911 in New York City? I bet the could care less.
In the short term cutting safety is an excellent way to boost profits but in the long run it costs a lot of money. In the two years that I have been handling the workers comp. for my company I have seen a few back injuries costing in the hundreds of thousands of dollar range. Now suppose their was no workers compensation insurance who would pay for it? First the injured person then the tax payer would pay for the injury that the company caused. OSHA was not passed because it was the "right" thing to do it was passed because it was best for society.
I don't know if the state provides medical care in China but if they do every time someone is injured on the job the state has to pay and their is no incentive for industry to prevent these injuries (the low cost option). If the state doesn't provide medical care then it is up to the injured worker to pay their own medical bills. If a person can't pay their bills then they are less likely to seek treatment as a result a minor injury can become a disability. I'm sure that’s what happens to a lot to cheap labor. If a person is disabled and can no longer work how are they supposed to survive? They either live in poverty, commit crime or are taken care of buy the state or relatives for the rest of their lives. Just preventing an injury would have been a lot cheaper.
Eventually China is going to start looking at workers safety in terms of long term economical stability. I can guarantee from experience that almost every dollar spent towards safety saves money in the long run. As safety expectations begin to reach the same level of the United States companies are not going to be able to keep costs down buy skimping on safety and having China or their injured employees pick up the bill.
I can clearly see your point, but I don't know if I fully agree with you.
Quote:
Originally Posted by Mike from back east
One of the best ways to help assure a resurgence is to make oil very expensive. As we saw in mid-2008 when gas prices hit $5/gallon in some areas is that the cost to ship goods over the ocean via steamship became hugely expensive. In response to high shipping costs, firms doing business here began putting manufacturing plants here, and I recall one specific firm in Europe building a furniture plant in VA to make it's product here.
If oil gets back up to those levels again, the early resurgence of things to be made here will be large bulky items, like furniture, that eat up lots of space in expensive ocean cargo containers. Then I'd look for large appliances, like pricey dishwashers, to be made here, etc. Increasing numbers of foreign cars would be made here too, especially since we have so many of our own plants sitting idle and the recent union contract adjustments make the UAW workforce essentially comparable to the non-union auto plants in the south.
There are some drawbacks of course to increasing oil prices. After all, increasing oil prices will inevitably increase the price of everything else. But yes, I suppose the resurgence of production will help our country's financial situation.
The only way manufacturing will come back is if government regulations are reduced and real estate prices fall to realistic levels. Increasing energy prices will prevent manufacturing from making a comeback. People will not buy things if they have to spend all their money paying their electric bill and putting fuel in their cars.
Eventually China is going to start looking at workers safety in terms of long term economical stability. I can guarantee from experience that almost every dollar spent towards safety saves money in the long run. As safety expectations begin to reach the same level of the United States companies are not going to be able to keep costs down buy skimping on safety and having China or their injured employees pick up the bill.
Except for the fact that China has too many people, which is why they don't have a shortage of young, healthy workers. Look at pictures from Chinese factories, you generally don't see many old people shown in them (unless they are highly skilled (in which case they might move to a different position)). Once the people are too old to work or don't want to work in the factory they go back to the family (rural lifestyle). Many factory systems, especially the new ones pretty much hire people as temp and they live "on campus." So there are campuses similar to college campuses, but you go to work instead of to school (sometimes even 6 days a week maybe 10 hours a day). There are "dorms" to live in and cafeteria to eat, some will have post office, some shops, movies, basketball courts, maybe small medical center, etc... So you just live there and work and if you want to come back next year you can or not. I've never heard of worker shortage.
Since the population is in excess, if people "die off" I doubt the government notices. [Note: not saying the government doesn't provide health care, but in China they're not going to have expensive "Western" healthcare for average people like chemotherapy, transplants, expensive medication, prosthetics, etc...)]
Interesting article about some China health care commentary: http://takingnote.tcf.org/2008/04/chinas-health-c.html
Only people that work in "professional" jobs (government, college educated, etc...) are likely to have somewhat safe work conditions and good health care, and you can only go to college if you pass all the entrance exams (so not everyone can go to college, unlike the US).
In the short term cutting safety is an excellent way to boost profits but in the long run it costs a lot of money. In the two years that I have been handling the workers comp. for my company I have seen a few back injuries costing in the hundreds of thousands of dollar range. Now suppose their was no workers compensation insurance who would pay for it? First the injured person then the tax payer would pay for the injury that the company caused. OSHA was not passed because it was the "right" thing to do it was passed because it was best for society.
I don't know if the state provides medical care in China but if they do every time someone is injured on the job the state has to pay and their is no incentive for industry to prevent these injuries (the low cost option). If the state doesn't provide medical care then it is up to the injured worker to pay their own medical bills. If a person can't pay their bills then they are less likely to seek treatment as a result a minor injury can become a disability. I'm sure that’s what happens to a lot to cheap labor. If a person is disabled and can no longer work how are they supposed to survive? They either live in poverty, commit crime or are taken care of buy the state or relatives for the rest of their lives. Just preventing an injury would have been a lot cheaper.
Eventually China is going to start looking at workers safety in terms of long term economical stability. I can guarantee from experience that almost every dollar spent towards safety saves money in the long run. As safety expectations begin to reach the same level of the United States companies are not going to be able to keep costs down buy skimping on safety and having China or their injured employees pick up the bill.
No chna is goping the opposite way in entitlem,ents ;they have cut 45 million from state support in the last few years. They have found that this spurs epople to not succeed basically.
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