> Why Are Politicians So Obsessed with Manufacturing? Because when the shit comes to shove and the global economy takes a nosedive or your previous friendly third world manufactures give you the finger, having a "service industry" is worth nothing, but being able to produce the actual shit your businesses design and sell/export, matters. Of course for the US this might be less so, because they can always force, by di…
Of course, manufacturing capability is important for a nation from a strategic viewpoint. But even if the manufacturing returns to the country - the fact of the matter, is that those manufacturing jobs are never coming back. It will all be done by robots. This process is already well underway( https://www.ft.com/content/7eaffc5a-289c-11e6-8b18-91555f2f4... ) So those politicians speaking to old people in steel towns…
Why Are Politicians So Obsessed with Manufacturing?
211–220 of 265 posts
Re: Why Are Politicians So Obsessed with Manufacturing?
#212Andy Grove spent the last decade or so of his life crusading about this. He framed the problem as, Silicon Valley invests a great deal in creating innovation, but outsources the scaling of it. Even though that may be in the short term best interests of the companies doing the outsourcing, both they and the country lose out on the economic growth, jobs, and crucial institutional knowledge that scaling innovations brin…
Good point. I don't think that every country in the world should be aiming to run an export-manufacturing trade surplus; that's mathematically guaranteed to end in tears. I do worry about institutional capability loss on the scale of companies, industries, and whole countries. Look how hard, over-budget, and over-schedule it has been to resume building nuclear reactors in the USA after the entire country took a decad…
Re: Why Are Politicians So Obsessed with Manufacturing?
#213Re: Why Are Politicians So Obsessed with Manufacturing?
#214That's why they are obsessed with manufacturing. If someone could come up with another industry that does the same thing for unskilled workers, then politicians would back that just as hard.
The sad part is that manufacturing itself no longer pays unskilled workers well. People blame China but it's arguable that automation and machines have taken more jobs.
This is why free college for everyone in the U.S. is a good idea. Our economy is leveling up, and it's time to level up our education too.
Re: Why Are Politicians So Obsessed with Manufacturing?
#215Last week's NYT article on free trade was pretty good: http://www.nytimes.com/2016/09/29/business/economy/more-weal... This is the bottom line on American manufacturing: > From 2000 to 2010, the United States lost some 5.6 million manufacturing jobs, by the government’s calculation. Only 13 percent of those job losses can be explained by trade, according to an analysis by the Center for Business and Economic Research…
You only have to look at their opinions on "right to work" laws to see whose side they're batting for (not employees).
Automation is simply being used as a scapegoat and a political justification for keeping trade policies that export jobs in place.
>Manufacturing has a powerful political resonance,
Manufacturing ecosystems take decades to fully destroy and decades to fully rebuild. The flow of goods on container ships can be halted overnight - which has happened before and will happen again.
There's a country that begins with Z and a country that begins with V that enacted policies that deliberately sabotaged their local industrial and agricultural base and assumed they could always just import what they needed. Spoiler alert: it didn't end well for either of them.
Re: Why Are Politicians So Obsessed with Manufacturing?
#216Manufacturing has a history of high growth and employment. Services do not. Economically, service domination means an overall slow-growth economy. Even highly intellectual services do not come close to the historic growth / employment curve the nation enjoyed when it was dominated by manufacturing. Wealth distribution is also heavily-weighted toward to the top with services. Generally democracies fare better when wea…
Good points. However, the macroeconomic benefits of manufacturing don't necessarily require people to be employed in manufacturing, do they? If America builds enough productive, highly-automated factories, the country is still generating wealth. As long as some of this wealth is captured for the people, then standard of living can increase.
Pretty much. The stuff you buy from China wasn't shipped 3000 miles because they have better robots than us.
Re: Why Are Politicians So Obsessed with Manufacturing?
#217This is a great article. The rage of the blue-collar masses is misplaced. It belongs with engineers, STEM people, operations research, Taylorist management. Globalism isn't the architect of their fate. We are. Want enough work to go around? Ban the last 100 years of agricultural development. That'll create all the jobs you could possibly want, real fast. Except then you'all find out that more work to go around is a w…
Re: Why Are Politicians So Obsessed with Manufacturing?
#218> Why Are Politicians So Obsessed with Manufacturing? Because when the shit comes to shove and the global economy takes a nosedive or your previous friendly third world manufactures give you the finger, having a "service industry" is worth nothing, but being able to produce the actual shit your businesses design and sell/export, matters. Of course for the US this might be less so, because they can always force, by di…
> your previous friendly third world manufactures give you the finger
Countries are not kids on a playground. If a country's economy does a lot of trade with the U.S., cutting off that trade is the last thing they are going to want to do, especially in the midst of a downturn.
Think the government of Venezuela has liked the U.S. over the past 2 decades? But they haven't disliked us enough to stop selling us their oil, or buying our planes and construction equipment.
And, of course, the U.S. today remains one of the top manufacturers in the world. To the extent we are growing services, it is on top of manufacturing, not displacing it.
That said, manufacturing jobs have disappeared--and that's why politicians are obsessed with it. Because they get elected by people who want good jobs, and no one has yet discovered a new industry that will pay millions of high school graduates enough to buy a car and a single-family home, the way manufacturing used to.
Re: Why Are Politicians So Obsessed with Manufacturing?
#219This is a great article. The rage of the blue-collar masses is misplaced. It belongs with engineers, STEM people, operations research, Taylorist management. Globalism isn't the architect of their fate. We are. Want enough work to go around? Ban the last 100 years of agricultural development. That'll create all the jobs you could possibly want, real fast. Except then you'all find out that more work to go around is a w…
This is my favourite counter to millenials complaining about how booomers had jobs handed to them on a platter. "What, you want an unfulfilling factory job doing the same mundane thing day in, day out, probably on your feet, and probably without climate control? And if you're a woman, explicitly get paid less for it?" The boomers may have had a higher employment rate, but they weren't design consultants and business…
This manifests as whingy articles in the mainstream media which leads to whingy people who enjoy both agreeing and disagreeing with them.
Re: Why Are Politicians So Obsessed with Manufacturing?
#220The holy grail for politicians is growth in jobs that pay well but don't require college degrees or a ton of specialized training. Manufacturing provided those jobs for decades. That's why they are obsessed with manufacturing. If someone could come up with another industry that does the same thing for unskilled workers, then politicians would back that just as hard. The sad part is that manufacturing itself no longer…
This is my thinking as well because this demographic is most likely a swing voter. College educated white collar types most likely have a lifelong party affiliation and don't swing their vote, but this demographic often doesn't as they aren't typically political.
Its easier to blame cheap manufacturing overseas than to admit that our own homegrown automation is to blame here. Everyone pretending automation isn't eating the world is something every politician and every party world-wide seems to have in common, at least or now.
Lastly, there's a puritan ethic at work here. Manufacturing, as well as farming, is hard work that brings tangible and easy to understand results. Politicians can talk about those jobs and farmers with no controversy compared to praising a hedge fund manager or an investment group that created vast amounts of wealth and jobs. Its politically incorrect to praise the wealthier people in society, even though they're the ones responsible for much of the economy. Election season tends to bring out the myth that the economy is run by hard working men in overalls sweating to produce value, when its really run in swanky offices by people engaging in fairly technical disciples.
One of the big problems with democracy or at least the demagogy needed to win an election is that you often can't talk about how things really work as its seen as too elitist, technical, or just confusing. So certain classes of people are seen a virtuous like teachers, farmers, or line workers and anything having to do with big business or finance is instantly vilified. So we have these elaborate lies and strange incentives (fight for manufacturing? why?) to make sure no one gets offended or feels inferior.