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Recently. But the point is: more manufacturing, less people
That points to automation. If someone thinks different, I would like to hear the rationale.
Read up on how they thought early automation (the cotton gin) would reduce the need for labor but overall it created the need for much, much more labor. They were literally afraid for society in the south.
Once you understand how there are multiple moving parts to industry and production you can see through the BS headlines designed to sell ad space on “news” websites.
I buy very very few imported manufactured goods. Almost all made in USA. An ironing board here, a set of tools there. It’s not hard. And you often get super high quality goods for the same or barely more than Chinese junk. Sometimes the good USA stuff is cheaper.
How can that be? First, according to the news we don’t make anything here any more so I must be lying. Second go to wal mart and look at a US made pair of pliers for $11.99. Right next to it are crappy imported pliers for $13.99. How can that be? Makes no sense right?
It makes perfect sense. The retailer makes $9.00 on the imports and $2.50 on the US ones. Which one do you think they give prime display space to?
US manufacturing output includes the production of electricity, petroleum, natural gas, gasoline, diesel fuel, chemicals, milk, cheese, wheat, corn, beer, soda, mining, etc. This statistic is used to convince the hoi polloi that the USA is still a manufacturing powerhouse (no pun intended). Except for certain products associated with the petroleum industry, the rest represent low employment or low value added production.
The Japanese and Germans know how to produce very high value added products. Example: This Ikegami (Japanese) high def studio TV camera sells for $121,000 new. There have been no studio quality TV cameras made in the USA for over 30 years.
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There is a big difference between China and Europe.
The US exports only $187.5 Billion to China, and there is a massive trade deficit.
In terms of Europe, the US exports totalled $501 Billion nearly three times as much as the US exports to China and the trade deficit is a quarter of that between the US and China.
The bigger the deficit the more leeway you have in a trade war, however in terms of Europe it's not a massive amount and tens of millions of jobs rely on transatlantic trade that amounts to over $1 Trillion every year, with taiffs of only around 3%.
Quote:
Originally Posted by The People's Republic of China | United States Trade Representative
U.S. goods and services trade with China totaled an estimated $710.4 billion in 2017. Exports were $187.5 billion; imports were $522.9 billion. The U.S. goods and services trade deficit with China was $335.4 billion in 2017.
Originally Posted by European Union | United States Trade Representative
U.S. goods and services trade with the EU totaled nearly $1.1 trillion in 2016. Exports totaled $501 billion; Imports totaled $592 billion. The U.S. goods and services trade deficit with the EU was $92 billion in 2016.
The U.S. trade deficit widened for the second straight month in July, reaching the highest level since February, as imports hit an all-time high. The deficits in goods with China and the European Union set records.
The Commerce Department said Wednesday that the deficit in goods and services — the difference between what America sells and what it buys from other countries — rose to $50.1 billion in July from $45.7 billion in June. Exports slipped 1 percent to $211.1 billion. Imports increased 0.9 percent to a record $261.2 billion on increased purchases of trucks and computers.
Oh No!!!! Who knew high tariffs could result in a trade deficit.
...So, your trade deficit for July is $50.1 Billion.
A real economist asks how much GDP did that $50.1 Billion generate?
That $50.1 Billion likely generated $429 Billion that you wouldn't be able to generate domestically.
You are always better-off, with or without a trade deficit, because trade always increases your GDP and never decreases it.
Mircea, trade deficit reduced (more than otherwise), rather than increased their nation's GDP. Trade surpluses increased (more than otherwise) the GDPs of their nations.
(That $50.1 Billion you mention, did not "generate" a penny of GDP for its nation).
Purchasing goods and services may increase their nation's GDP and never decreases it; but annual trade deficits reduce their nation's GDP (more than otherwise).
You thus logically conclude there's no economic differences between producing more or less of what we consume? You prefer we produce less and purchase more imported rather than domestically produced goods? Your position is nonsensical.
... Your entire trade certificate nonsense is fatally flawed. ...What idiot would import $7,000 of teak wood, pay workers to make tables out of the teak wood, and then sell the tables for $4,000 and take a $3,000 loss? ...
Mircea,
Quote:
Originally Posted by Supposn
Mircea, the entire economic differences between imported and domestic produced goods occur during the production and delivery of the goods to the USA. The distribution, sales, repairs, and maintenance, and updating services are similar for similar domestic or foreign produced vehicles. They are not, and should not be attributed to the character of imported or domestic produced vehicles.
The importation of foreign finished products crowd out the sales of similar USA products sold within USA's domestic marketplaces.
In the example you provided, $700 of imported teak wood to produce a USA FOB $1,500 table has been increased by the USA furniture manufacturer @ $800/per unit from the point of the USA's furniture factory's shipping dock and that table may retail at or near $3,000.
But almost all of USA's imports are finished rather than production supporting goods. The opposite of your example occurs if USA manufactured components are shipped to and finished in Mexico, before returning to the USA as finished assembled components or entirely finished products. Import Certificate policy is not concerned with details that are determined by enterprises.
Exporters of goods may request, (they're not required) to have their goods assessed and pay the federal Import Certificate fee rate based upon that assessment. Their motivation is to acquire the valuable transferable certificates with face values reflecting the assessed values of their goods.
Importers of goods are required to acquire and surrender transferable certificates with face values that cover the assessed values of their imported goods. Surrendered certificates are canceled; they're not reusable.
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Quote:
Originally Posted by Supposn
Brave New World, you may, (or may not) understand the consequences of tariffs, but Import Certificates ain't tariffs and their consequences greatly differ. Regardless upon other nation's response to USA adoption of the Import Certificate policy, USA's GDP and numbers of jobs will increase. Import Certificate policy is substantially more market and less government driven.
I am sure suppliers would probably pay some of the cost as a way to gain access to the US market, however they would ultumately pass the costs on to the US Consumer.
Other countries would simply limit US exports or tax them in response in order that exporters can afford to buy US import certificates, which are just a form of trade protectionism, and there would be a slow down in relation to the US, whilst the rest of the world engaged in free trade.
Countries could even decide to limit US Financial and Services trade using a similar system of protectionism in response and in terms of trade organisations such as the EU. how would Import Certificates be allocated to individual countries.
Putting up barriers to trade or engaing in protectionis just leads to a similar response from those you export to and makes imports more expensive.
Import Certificates were never a good idea, which is why they were never adopted in the first place and why they have long since been consigned to history.
Tim Worstall a senior fellow of the Adam Smith Institute explains some of the problems with the Import Certificate plan in the article below. The main problem being that trade makes absolutely no difference whatsoever to how many jobs there are in an economy. It changes which jobs are done, that's true, but not how many there are.
Whilst wealth is not static as in Buffet's analogy using Squanderville and Thriftville, indeed the US reaps massive returns in relation to stocks, mutual fund portfolios, shares, property etc and this dwarfs any trade deficit and means the country is asctually becoming wealthier, indeed the trade deficit only accounts for a very small percetage of the overall US Economy.
The US does not make a lot of consumer goods nowadays. Been to Walmart lately, OG? Try to find an American made non-food item. Truth is that we've forgotten how to manufacture many items. So, imports are a necessity. If not from China then from some other countries. This will continue until the other countries wise up and stop accepting our fiat money.
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US trade deficits with China and Europe hit records
