Unfortunately, the blind spot is cooperation - manufacturing in the U.S. has never been a place where everyone cooperates. Can’t totally blame owners, nor workers, nor elites, nor economists.
Clearly with WTO accepting China in 2000, it would and did make stuff at 50% or less of cost to western manufacturers. And its culture much more capable and dynamic than Mexico’s. I come from western Michigan. I saw what China did (think Flint, home of General Motors and 40% poverty rate today.) Neighbors back in early 2000s closing shop saying China can make two cheaper than I can make one.
Same with all cheaper labor and talent situations, especially, as Perot pointed out, when there aren’t any manufacturing safety nor environmental compliance costs- Mexico , etc. in fact, right now labor is cheaper in Mexico than China, at least in car manufacturing. So move some factories to the pollutable and cheaper labor source or close.
Unless you’re Germany or Sweden. So different from America in terms of culture , especially cooperation; owners and workers and governments cooperate to keep manufacturing globally competitive while maintaining safety and environment. Of course, there are tradeoffs with any policy choice.
Point is, US still has huge manufacturing capability. It has survived and thrived despite the rhetoric. It still has powerful tensions between owners and workers.
And if you’re a Universalist or Globalist, celebrate bringing hundreds of millions out of poverty. Thank you, Western culture- “free” trade, capitalism and comparative advantage. Well done! But globalism’s rapid change has a price.
The biggest problem has been replacing what was manufacturing in rust belt cities.
Like the lack of cooperation in manufacturing, it’s never been a priority in blue states to highlight why jobs are moving to red states.
Julian Hatton responded:
Love Ross Perot. Good post.
Unfortunately, the blind spot is cooperation - manufacturing in the U.S. has never been a place where everyone cooperates. Can’t totally blame owners, nor workers, nor elites, nor economists.
Clearly with WTO accepting China in 2000, it would and did make stuff at 50% or less of cost to western manufacturers. And its culture much more capable and dynamic than Mexico’s. I come from western Michigan. I saw what China did (think Flint, home of General Motors and 40% poverty rate today.) Neighbors back in early 2000s closing shop saying China can make two cheaper than I can make one.
Same with all cheaper labor and talent situations, especially, as Perot pointed out, when there aren’t any manufacturing safety nor environmental compliance costs- Mexico , etc. in fact, right now labor is cheaper in Mexico than China, at least in car manufacturing. So move some factories to the pollutable and cheaper labor source or close.
Unless you’re Germany or Sweden. So different from America in terms of culture , especially cooperation; owners and workers and governments cooperate to keep manufacturing globally competitive while maintaining safety and environment. Of course, there are tradeoffs with any policy choice.
Point is, US still has huge manufacturing capability. It has survived and thrived despite the rhetoric. It still has powerful tensions between owners and workers.
And if you’re a Universalist or Globalist, celebrate bringing hundreds of millions out of poverty. Thank you, Western culture- “free” trade, capitalism and comparative advantage. Well done! But globalism’s rapid change has a price.
The biggest problem has been replacing what was manufacturing in rust belt cities.
Like the lack of cooperation in manufacturing, it’s never been a priority in blue states to highlight why jobs are moving to red states.
JH
You're right about Perot!