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Why The Manufacturing Jobs Are Not Coming Back
There are a plethora of reasons underpinning the fact that manufacturing jobs are not coming back to the USA. Perhaps the simplest is purely economic. As McKinsey notes in a recent report, manufacturings' role in job creation shifts over time as manufacturing's share of output falls and as companies invest in technologies and process improvements that raise productivity. A critical finding is that as manufacturing's share of national output falls, so does its share of employment - following the inverted 'U' curve below. Manufacturing job losses in advanced economies have been concentrated in labor-intensive and highly tradable (read globalizable) industries such as apparel and electronics assembly. Thanks to the increased productivity and a 'high' credit-enabled standard-of-living, the US has simply priced itself out of the global manufacturing business (and so is China as its GDP per capita rises). Unless Americans are willing to put the twinkie (and iPad) down, those jobs will continue to bleed overseas (to India based on the chart below) building the ever-more self-fulfilling vicious circle of a nation dependent on state-aid to survive as only the 'unlucky' few remain employed.
Source: McKinsey
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McKInsey -B.S.Artists par excellence.
Use a 10foot pole - and, just to be on the safe side, wash hands afterwards.
leading the world in manufacturing fiat currency since 1973
Team America (f**k ya!)
The joke is as the technological efficiencies were taken overseas and other countries skilled up you spread the EFFICIENCY PLAGUE plague faster = not enough work hours in economies to keep it all together.
Japan being so efficient got there first - here's a medal for the winner.
The west is following nicely as the rest of the world year on year is improves its efficiency. You think it's economically bad now give it 10 more years the best thing about austerity is it forces the chase for even bigger savings = more efficiency = rising part time work if you are lucky certainly never enough to retire at a basic level.
Now about 12 months ago a Chinese minister dropped one line they have been keeping factories producing at a loss to keep people in work - ominous that. South Africa, unofficial figures of unemployment nearer 50%. India may be a country in poverty, give them all jobs watch the poverty shift elsewhere although I do not know who is going to consume the excess.
So what is wrong with the global economy that every nation in the world is now starting to catch a cold?
EXCESSIVE PRODUCTION THAT REQUIRES CONSUMING = needs money nobody has.
The amount of work McKinsey has outsourced to India makes you wonder whose talking whose book. The simple fact is that employment will not be balanced and incomes will not be generated without protectionism. the globalised model means mass-unemployment in The West to bolster China
Germany is a high wage country that has not only retained but grown its industrial and manufacturing base, including number of those employed and share of the national economy. Every economic miracle of the 20th century--the US, Japan, Germany, Taiwan, Singapore, China--was based on manufacturing, and no country can remain affluent without it. Even now if one calculates all its support activity, US manufacturing accounts for 75% of total economic output. Manufacturing could again return to the US and propel the country to economic pre-eminence, but definitely NOT with it's current business and government leadership consisting of shysters, con and rip-off artists, corrupt politicians, get something for nothing and get it easy types, an education system led by clueless Marxists, and a media dominated culture constantly ramming pornography, crime and horror down society's throat. However, the system is too broken to fix, now we have to destroy the country, in order to save it.
Gah, again, so much half truths.
Germany accomplished that by maintaining highly specialised high-tech industry. It shipped in Turkish / Algerian workers for the shitty stuff. This is the basic shift: import cheap labour for non-technical stuff, maintain Soverign control over high-tech industry. It ain't rocket science.
And you know what?
That model is broken. Totally fucked. "Manufacturing" is about to go through the same revolution that Ford introduced into car manufacture waaay back when, and to a 29 degree. The new robots aren't just building cars, they can make an entire section of the service industry obsolete.
Be a good boy, and remind us all what % of Western democratic economies are service industries now? Hitting 60-80% there darling.
At which point, your pathetic economic models fail. The only reason for a "middle class" is so things don't break, always has been since the class changes post-WWI / II. And breaking they are. So you do the math on what the owners want to happen.
Ciao.
The real reason that no jobs are coming back: "NO ONE TRUST THE FASCIST SOCIOPATH IN CHIEF, OBAMA!" How could anyone conceive of bringing their business and people back to the US when the guy in charge is a psychopathic lair who is bent on destruction of the US and it people? Sure, the first people he is murdering are innocent people and their children in other countries, but then it will be the people here who know what he is ... the smart people and THEN the people who know what he is and are doing his evil work. Obama cannot afford to keep the complicit idiots alive (even though they are dumb enough to think that if they do his work, they are protected) and if he is like other psychopathic leaders (Stalin, Hitler, Mao) he will murder them as well.
The police, military and politicians should beware. History says that if Obama is like the other psychopathic, so called, leaders, he will murder them.
If manufacturing is not coming back then expect >95% of the kiddies to live the rest of their lives in poverty unless they happen to choose one of the few professions that will be left that offer an above average wage with intense competition for those few jobs
A lot of "the kids" are getting into creative (read: difficult to monetize) fields of work because they already recognize there's nothing sufficiently superior about the USA to give us an edge on the 6.7 billion laborers we're competing with out there. If you're going to spend your life poor, may as well be doing something fun that can get you laid without a fat wallet.
What the hell--just learn to dance, paint, tattoo, and pierce. Rich kids are always looking to improve their cred, and there's plenty of floppy dangly bits you can stick a spike through.
There IS something to that! The cable companies and other entertainment providers need CONTENT! Creativity can be rewarded if you are, well, creative! As our world becomes more and more "virtual", there will be a need for MORE to see on TV (etc.).
+ 1
you'd want to be one of the guys building the robots....
Radical thought:
Most of human history spent it with "economics" and trade being a small fraction of life. It's only been in the last 200-300 years where "Economics" have dominated human experience.
Here's a small thought: perhaps money, economics and so on, is a cul-de-sac, and doomed to fail. Perhaps we should stop giving a shit about your artificial and insane theories [modern Economists? Not Scientists, not Philosophers, merely bag-men for control freaks]
Time to grow up, children. Money is merely a means to the end; and if your end is broken, then you're surprised the economics of it is?
Most of the big shore places were closed now and there were hardly any lights except the shadowy, moving glow of a ferryboat across the Sound. And as the moon rose higher the inessential houses began to melt away until gradually I became aware of the old island here that flowered once for Dutch sailors’ eyes — a fresh, green breast of the new world. Its vanished trees, the trees that had made way for Gatsby’s house, had once pandered in whispers to the last and greatest of all human dreams;
for a transitory enchanted moment man must have held his breath in the presence of this continent, compelled into an aesthetic contemplation he neither understood nor desired, face to face for the last time in history with something commensurate to his capacity for wonder.
And as I sat there, brooding on the old unknown world, I thought of Gatsby's wonder when he first picked out the green light at the end of Daisy’s dock. He had come a long way to this blue lawn and his dream must have seemed so close that he could hardly fail to grasp it. He did not know that it was already behind him, somewhere back in that vast obscurity beyond the city, where the dark fields of the republic rolled on under the night.
Gatsby believed in the green light, the orgastic future that year by year recedes before us. It eluded us then, but that’s no matter — tomorrow we will run faster, stretch out our arms farther.... And one fine morning —
So we beat on, boats against the current, borne back ceaselessly into the past.
[And you wonder why it's a film of 2013]
Re Robots this from the NYT a few months ago
https://www.nytimes.com/2012/08/19/business/new-wave-of-adept-robots-is-changing-global-industry.html?_r=1&pagewanted=all
“At an automation trade show last year in Chicago, Ron Potter, the director of robotics technology at an Atlanta consulting firm called Factory Automation Systems, offered attendees a spreadsheet to calculate how quickly robots would pay for themselves.
In one example, a robotic manufacturing system initially cost $250,000 and replaced two machine operators, each earning $50,000 a year. Over the 15-year life of the system, the machines yielded $3.5 million in labor and productivity savings.”