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Rebuilding infrastructure will produce thousands up thousands of jobs (for a while anyway) in the US, and millions of new ones in China where all the materials will be sourced.
There are plenty of jobs in the US. For the first time in a long time, the number of open positions exceeds the available labor pool. But, and it's a biggie, most of those jobs are in the west and the sunbelt and, especially, urban centers. And they require skills and/or education. The people needing jobs are in rural America and do not have the requisite skills/education. We should address this before thinking tariffs are going to save us.
President-elect Trump has said he will bring back our manufacturing jobs from China and Mexico. When does that happen and how many is he going to bring back?
This is obviously never going to happen. But the repubs will attempt to compensate for their inability to deliver in this area by playing up more strongly the cultural war stuff. Expect more Scalia clones on the Supreme Court, renewed attacks on Roe v Wade, affirmative action, church state separation and even the Voting Rights Act. They will calculate that these things will endear them to that rural base as a substitute for the manufacturing jobs that they wont bring back.
President-elect Trump has said he will bring back our manufacturing jobs from China and Mexico. When does that happen and how many is he going to bring back?
It could start when Trump Org chooses to manufacture its all retail products in the US and buy steel from US producers. It boggles the mind that a candidate who campaigned on a platform of bringing jobs back would continue to rely entirely on foreign producers.
On the other hand, Deloitte & Touche surveyed 500 global manufacturing CEOs to get their take on the future of global manufacturing. The survey concluded the US is poised to reclaim the top spot in global manufacturing by 2020. It had all to do with US investment in industrial robotics far more productive than the lowest cost global labor pool. No doubt, if realized whichever candidate was elected he/ she would take credit for it.
The big difference is that US manufacturing will increasingly reduce its dependency on no/ low skill human labor working under collective bargaining agreements.
The survey did not take politics/ trade agreements into consideration. For example, Boeing is highly dependent on future orders from China. Mess with China and they will give their business to one of Boeing's capable foreign competitors. Unless the Federal Government makes up for the loss with military orders, Boeing is in a world of hurt. Maybe they would move their base to say Mexico who maintains free trade agreements. In doing so, Boeing avoids collective bargaining and the higher compensated US work force.
There are plenty of jobs in the US. For the first time in a long time, the number of open positions exceeds the available labor pool. But, and it's a biggie, most of those jobs are in the west and the sunbelt and, especially, urban centers. And they require skills and/or education. The people needing jobs are in rural America and do not have the requisite skills/education. We should address this before thinking tariffs are going to save us.
No shortage of low- no skill job hungry folks in the rust belt.
When someone makes $30+ hr, plus benefits, under a collective bargaining agreement to push buttons and wakes up to find their job is being eliminated because the operation is moving to Mexico, they blame government.
So much of this is because manufacturers are saddled with legacy collective bargaining agreements and pension liabilities.
Long gone are the days when unskilled/ low skilled, albeit hardworking people could make enough money to support a family. The middle income class has been shrinking for 45 years. More have evolved to higher economic brackets than lower income brackets. That's education and skill.
The outliers and most vulnerable are those who were on the lower end of the middle class income spectrum, especially those unin lined to migrate to areas with more opportunities. Those jobs have more likely been eliminated by technology substitution.
Wage matters less than what that wage will buy in the local economy. what good is $100/hr when that's the cost of a Big Mac meal?
No shortage of low- no skill job hungry folks in the rust belt.
When someone makes $30+ hr, plus benefits, under a collective bargaining agreement to push buttons and wakes up to find their job is being eliminated because the operation is moving to Mexico, they blame government.
Agreed. Unfortunately these higher salaries drove up the real estate market. Only the first guy who moved in got $30 an hour. The next guy who moved in had to commit a good deal of $30 per hour to the real estate industry. Real estate is fundamentally a da guberment privilege, So one can blame da guberment.
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So much of this is because manufacturers are saddled with legacy collective bargaining agreements and pension liabilities.
Everyone should take a pay cut. Unfortunately da guberment, and the real estate industry never wants to take a pay cut.
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Long gone are the days when unskilled/ low skilled, albeit hardworking people could make enough money to support a family.
Wonder how people 200 years ago did it.
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The middle income class has been shrinking for 45 years. More have evolved to higher economic brackets than lower income brackets. That's education and skill.
Education and skill merely pays for the subsistence. One rarely keeps high income for long without barriers to competition. The Saudis don't merely have education and skill, and they have very high incomes. That is because they are renting resources.
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The outliers and most vulnerable are those who were on the lower end of the middle class income spectrum, especially those unin lined to migrate to areas with more opportunities. Those jobs have more likely been eliminated by technology substitution.
Wage matters less than what that wage will buy in the local economy. what good is $100/hr when that's the cost of a Big Mac meal?
Right. That is why we need to stop having an economy whose cash flows are dependent on asset equity. It always drives the assets higher in price relative to labor.
No shortage of low- no skill job hungry folks in the rust belt.
When someone makes $30+ hr, plus benefits, under a collective bargaining agreement to push buttons and wakes up to find their job is being eliminated because the operation is moving to Mexico, they blame government.
So much of this is because manufacturers are saddled with legacy collective bargaining agreements and pension liabilities.
Long gone are the days when unskilled/ low skilled, albeit hardworking people could make enough money to support a family. The middle income class has been shrinking for 45 years. More have evolved to higher economic brackets than lower income brackets. That's education and skill.
The outliers and most vulnerable are those who were on the lower end of the middle class income spectrum, especially those unin lined to migrate to areas with more opportunities. Those jobs have more likely been eliminated by technology substitution.
Wage matters less than what that wage will buy in the local economy. what good is $100/hr when that's the cost of a Big Mac meal?
Several good points here. Without unions, a job requiring burger flipper levels of skill is going to pay burger flipper wages.
Applying tariffs will only help with manufacturing aimed at the domestic market, which has limited growth potential. Manufactured goods destined for the expanding overseas markets will still be manufactured in countries with lower labor costs. As a result, as you allude to in your last line, I would not expect that the net result on the U.S. economy of such a move would be all that positive.
No shortage of low- no skill job hungry folks in the rust belt.
When someone makes $30+ hr, plus benefits, under a collective bargaining agreement to push buttons and wakes up to find their job is being eliminated because the operation is moving to Mexico, they blame government.
So much of this is because manufacturers are saddled with legacy collective bargaining agreements and pension liabilities.
Long gone are the days when unskilled/ low skilled, albeit hardworking people could make enough money to support a family. The middle income class has been shrinking for 45 years. More have evolved to higher economic brackets than lower income brackets. That's education and skill.
The outliers and most vulnerable are those who were on the lower end of the middle class income spectrum, especially those unin lined to migrate to areas with more opportunities. Those jobs have more likely been eliminated by technology substitution.
Wage matters less than what that wage will buy in the local economy. what good is $100/hr when that's the cost of a Big Mac meal?
Normally your posts are really good and on point, you went astray here though. No one making $30 an hour including benefits is simply just pushing buttons. You are way off point here.
President-elect Trump has said he will bring back our manufacturing jobs from China and Mexico. When does that happen and how many is he going to bring back?
No shortage of low- no skill job hungry folks in the rust belt.
When someone makes $30+ hr, plus benefits, under a collective bargaining agreement to push buttons and wakes up to find their job is being eliminated because the operation is moving to Mexico, they blame government.
So much of this is because manufacturers are saddled with legacy collective bargaining agreements and pension liabilities.
Long gone are the days when unskilled/ low skilled, albeit hardworking people could make enough money to support a family. The middle income class has been shrinking for 45 years. More have evolved to higher economic brackets than lower income brackets. That's education and skill.
The outliers and most vulnerable are those who were on the lower end of the middle class income spectrum, especially those unin lined to migrate to areas with more opportunities. Those jobs have more likely been eliminated by technology substitution.
Wage matters less than what that wage will buy in the local economy. what good is $100/hr when that's the cost of a Big Mac meal?
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Originally Posted by bcattwood
Several good points here. Without unions, a job requiring burger flipper levels of skill is going to pay burger flipper wages.
Applying tariffs will only help with manufacturing aimed at the domestic market, which has limited growth potential. Manufactured goods destined for the expanding overseas markets will still be manufactured in countries with lower labor costs. As a result, as you allude to in your last line, I would not expect that the net result on the U.S. economy of such a move would be all that positive.
You two are both way out of touch and know nothing about the blue collar or manufacturing sector. I'm pretty sure a boilermaker isn't flipping burgers. Like either of you could ever do their job. Pretty typical from the lefties though that tell their kids that every job should be in a cubicle...and now we have a bunch of whiny millennials that aren't happy.
If you want to actually learn instead of being a misinformed Hillary done read up on the Germany manufacturing sector :
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