How do we encourage manufacturing to stay within a country with higher standards of living and greater control over the quality of the product?
The US is bleeding manufacturing jobs. I am assuming the same is true of most other western European countries. The jobs are going to places where the wages are much lower, benefits are non-existent, the governments could care less about the environmental impact, and have less stringent requirements for the ultimate quality of the product.
How can we compete against that?
1) Reduce wages. This really isn't a viable option. Sure, some wages and benefits were ridiculously high (like in the auto industry) and needed to be brought down, but in general, wages have not risen with the cost of living for the middle class. To reduce them even further is not sustainable unless, somehow, the cost of living also is reduced. To reduce them to the level of the countries these jobs are going to is downright impossible.
2) Reduce regulations. Yes, some red tape needs to be cut. Bureaucrat-ese needs to be abolished, and we need to streamline. But, we do have a responsibility for taking care of the earth we inhabit. I find the idea of leaving a parched, scorched, impoverished Earth for our grandkids much more abominable than leaving them a government deficit. (But for some reason, it's never really framed that way...) We also have a responsibility to make sure that our peanut butter doesn't have salmonella in it, and that the toys and drugs and everything else we produce is safe for the consumer. So every regulation that might hurt the bottom line can't go.
3) Tariffs. These appeal to me. Charge more for imports, or somehow economically punish American companies which move their factories overseas. But, the merest whiff of them causes a global backlash. How can we become more protectionist (darn tootin! I want to protect American jobs!), without blowing up the global economy?
Those are the main ideas I've heard of, but I want to hear more. Also, I know this is from a heavily American perspective, but I want to know what people in other countries think, whether they too are having troubles keeping their manufacturing jobs, or whether they are the ones gaining all these jobs. How would you respond to a country becoming more protectionist, etc?
The US is bleeding manufacturing jobs. I am assuming the same is true of most other western European countries. The jobs are going to places where the wages are much lower, benefits are non-existent, the governments could care less about the environmental impact, and have less stringent requirements for the ultimate quality of the product.
How can we compete against that?
1) Reduce wages. This really isn't a viable option. Sure, some wages and benefits were ridiculously high (like in the auto industry) and needed to be brought down, but in general, wages have not risen with the cost of living for the middle class. To reduce them even further is not sustainable unless, somehow, the cost of living also is reduced. To reduce them to the level of the countries these jobs are going to is downright impossible.
2) Reduce regulations. Yes, some red tape needs to be cut. Bureaucrat-ese needs to be abolished, and we need to streamline. But, we do have a responsibility for taking care of the earth we inhabit. I find the idea of leaving a parched, scorched, impoverished Earth for our grandkids much more abominable than leaving them a government deficit. (But for some reason, it's never really framed that way...) We also have a responsibility to make sure that our peanut butter doesn't have salmonella in it, and that the toys and drugs and everything else we produce is safe for the consumer. So every regulation that might hurt the bottom line can't go.
3) Tariffs. These appeal to me. Charge more for imports, or somehow economically punish American companies which move their factories overseas. But, the merest whiff of them causes a global backlash. How can we become more protectionist (darn tootin! I want to protect American jobs!), without blowing up the global economy?
Those are the main ideas I've heard of, but I want to hear more. Also, I know this is from a heavily American perspective, but I want to know what people in other countries think, whether they too are having troubles keeping their manufacturing jobs, or whether they are the ones gaining all these jobs. How would you respond to a country becoming more protectionist, etc?
