Re: We're outsourcing our future

El Castor <anyonethere@xxxxxxxxxxxx> wrote in
news:l-ednQDdTM92Z6fZ4p2dnA@xxxxxxxxxxx:


Earl <neptune@xxxxxx> wrote:

Are we actually manufacturing more than before?

Seems that most commonly used items are imported and only
big ticket items like 747s are manufactured here. And Boeing
has some severe competion now that it never had before.

We have fewer mfg jobs that previously.

Yes those fewer jobs are producing more so the mfg total
remains about the same.

But the folks laid off from mfg jobs are now in the serve
professions -- want fries with that.

Except that the illegals are filling the low end jobs at a
rate high than net new job creation occurs so the overall
result is we put Americans out of work whereas before we
actually created new high paying mfg jobs.

For the first time in history (barring recessions and the
depression) we are no longer in a condition of a shortage of
workers. This shortage is what allowed America to mechanize
and still have jobs available for everyone. We still are
increasing mechanization, but the opportunities are
dimminishing, but the replacement jobs are being filled by
illegals.

Earl, I just did a little research on the subject of
manufacturing growth. Between 1989 and 2004 manufacturing
output in the United States increased by 51%, while at the
same time employment in manufacturing declined. (I've
included a few paragraphs at the end of this post to
substantiate that.)

Globalization is a scary concept, and inevitably there are
going to be winners and losers. When the Massachusetts mills
closed, people were thrown out of work, and I am sure there
were many personal tragedies. But, today the people of
Massachusetts have better paying more rewarding jobs than
working in a textile mill, and as a whole are much better
off.

All I'm saying is that free enterprise is amazingly good at
sorting things out to the advantage of most people. Before
we start mucking about with quotas, tariffs, and regulations
we had better be darn sure that we aren't creating more
problems than we are solving. A few years ago France
decided to decrease unemployment by cutting back the work
week from 40 to 35 hours. The theory was that companies
would hire more workers to make up for the loss in hours.
Well, what it did was increase unemployment by making French
companies less competitive. Some closed and others were
forced to cut back and lay off workers. That's what
seemingly logical "fixes" can almost always be counted on
to do.



there is no dispute that we need to think things through
carefully.

Neither erecting trade barriers without cause, nor blindly going
free trade especially with outsourcing being so easy nowdays via
telecommunications.

Free trade was a movement that ruled in England from the late
18th century to the early 20th. Just as the gold standard was
the mechanism to maintain British industrial hegemony. It ruled
simply because England had the lowest production price for all
manufactured goods, and she wanted little hinderance to her
sales.

But things changed, wars wracked the UK and the precious assets
it accumulated abroad disappeared in 1914. From that time on the
country was in ruins but it took another 4 decades to sink into
the minds of their politicians.

And with being no longer the worlds biggest creditor went the
power to control trade that was "free".

We inherited the free trade mantle with the end of ww2 when we
were basicly the only country with factories left standing. But
by the '60s the world had rebuilt, and our calls for free trade
bounced up against the ugly fact that there was real competition
out there finally. Track Detroit from that point on. We had the
aviation market in the bag with Douglas and Boeing, but there is
a high probability that the state capitalism associated with
Airbus will put it in command and the only real seller of big
airplanes.

Notice that we are today the worlds larget debtor, and our
actions likewise depend on the policies of others.

But the net result of the massive free trade movement will be to
eventually equalize the standard of living throughout the world.
The problem is that there are 20 of them for every 1 of us. and
their annual incomes are a lot closer to $500 a year than they
are to $50,000.


Remember your history. The economic power of the United States
was built by the Republicans who advocated a stong protective
tariff and subsidies for the emerging industries. Over the next
50 years we increased capacity until by 1914 we finally had a
steel industry capacity equal to Britain's. And at a rate of
increase so high that Germany could neglect our abilities,
because they were looking at 1900 data, whereas if they knew our
real capacity their actions would have been different.

It should be pointed out that the Republicans (from 1854
formation) planned to finance those business subsidies with the
tariffs paid by the agricultural base -- which just happened to
be the South. It was the economic policies of the North not
slavery that was the root cause for the war of Northern
Aggression. The tariff bill was already passed before Lincoln
took office. Slavery was just added much later in a mad effort
to keep England from backing the South.

And why did the South lose? Economics and manpower. It was
outnumbered 4 to 1 and had virtually no factories within its
borders. It was unable to make the weapons of war, so it had to
beg foreign powers to sell, on credit to a country deep in debt,
and with a war and blockade.

So today we have Americans who want to put us in the same
position.

Really, how dumb are we. We reequip our military with 9mm
pistols with foreign sources, and we have to buy ammo for our
rifles for the Iraq conflict from foreign sources. What if we
had to fight a major war. Are our opponents going to give us 10
years to rebuild our industrial base.
.

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