The Fallacy of Bringing Jobs Back to America

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4 Responses

  1. Chicken or the egg ? says:

    So at what point does minimum wages stop ? Every time, the minimum is raised products cost more. So do we raise the minimum again ?

    Even if everyone was equally qualified, someone will get paid less than others because of various standards and contracts.

  2. Anglocentric says:

    China started taking jobs by offering five year tax holidays for corporate investment. When logistics costs still kept a bunch of jobs onshore, they devalued the yuan 35%. Mexico is getting jobs now because China’s wage rates have increased (there is social unrest there) and Mexico ‘s costs with a devalued peso are less than China now. That said labor cost in a PCBA is often less than 5% and equipment costs the same worldwide. Some manufacturing still remains in the US simply because it still costs more to build offshore. If we lower taxes and prosecute dumping and currency manipulation, we will see some of these jobs come back. And manufacturing is a great transformative job. Workers generally make more than minimum wage and have many opportunities for additional training and advancement. Growth in manufacturing jobs drives growth in engineering, accounting, HR, training and other support jobs. In short, if we can bring it back we will see benefits. Conversely, graphic design jobs are a commodity and will always be subject to foreign competition because there is no logistics factor. If you can’t create a personal brand that makes you “a go to choice, you will lose business to folks who are cheaper.

  3. Jerry K says:

    A business corporation is a money-seeking robot and will seek lowest cost anywhere. Trade barriers that used to exist created relative affluence for American workers. Time to revisit that idea.

  4. tBusch says:

    Funny. Germany is still a manufacturing powerhouse. They have among the highest wages and worker benefits in the world. I wonder how they did that.

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