"Lessons Learned" - Insourcing Manufacturing (1 Viewer)

[Rich Conway]

I read a lot of comments that we should learn from this crisis and start moving much of our manufacturing capacity back to the US, especially for critical things like medical equipment, drugs, toilet paper (apparently), computer equipment, etc.  Many of these comments come from small-government / free-market types.

So my thought then is how do we accomplish that?  In the long run, simply encouraging it with a pat on the back isn't to work.  Corporations and consumers will continue to look for the cheapest option.  Seems to me that the only options then are 1) government-owned manufacturing plants, 2) subsidies to US manufacturing efforts, or 3) tariffs.  Are there other options?

 

[The Commish]

I read a lot of comments that we should learn from this crisis and start moving much of our manufacturing capacity back to the US, especially for critical things like medical equipment, drugs, toilet paper (apparently), computer equipment, etc.  Many of these comments come from small-government / free-market types.

So my thought then is how do we accomplish that?  In the long run, simply encouraging it with a pat on the back isn't to work.  Corporations and consumers will continue to look for the cheapest option.  Seems to me that the only options then are 1) government-owned manufacturing plants, 2) subsidies to US manufacturing efforts, or 3) tariffs.  Are there other options?

Given the current state of economics in this country and understanding that we live in a global market where every other country in the world puts their thumb on the scale on behalf of their native companies, the only answer is we do the same.  Of course, that is exactly what we're trying to do with things like our healthcare and education and people are labeling it "socialism".  The reality is those asking for "small government and free markets" don't really know what their asking for.  Times have changed.  Not only do "free markets" no longer exist in a meaningful way, they are dangerous to wish for in the global environment unless all countries are on board (and that's NEVER going to happen).

 

[wikkidpissah]

we can pretty confidently state that all "putting toothpaste back in the tube" efforts are futile. and we're nowhere near putting public good over private profit as a substantial priority. though i mourned every effect of the arbitrage era and the jobbing of every task an American might gainfully perform, you dont go back once it's done. but we can end the shareholder being right, still & ever.

 

[Gawain]

90% of the TP sold in this country comes from the Pacific Northwest and Northeast. Most of the rest comes from Canada.

 

[Rich Conway]

90% of the TP sold in this country comes from the Pacific Northwest and Northeast. Most of the rest comes from Canada.

Yeah, that specific bit was meant to be a joke.

 

[timschochet]

Given the current state of economics in this country and understanding that we live in a global market where every other country in the world puts their thumb on the scale on behalf of their native companies, the only answer is we do the same.  Of course, that is exactly what we're trying to do with things like our healthcare and education and people are labeling it "socialism".  The reality is those asking for "small government and free markets" don't really know what their asking for.  Times have changed.  Not only do "free markets" no longer exist in a meaningful way, they are dangerous to wish for in the global environment unless all countries are on board (and that's NEVER going to happen).

I want big government and free markets. 

 

[timschochet]

The answer to the OP is: we don’t. We can’t. Not if we want to maintain our standard of living. The answer is more trade,  not less, and more government programs. 

 

[SaintsInDome2006]

It’s not just standard of living - which is important, it’s American consumerism which Americans demand - its Lessons Learned from WW1 & WW2. We learned that American manufacturing relationships in multiple countries help foster stability which is good for America and also most likely to give us peace, at least from the sort of disastrous global conflagrations that almost destroyed modern civilization.

 

[Rich Conway]

The answer to the OP is: we don’t. We can’t. Not if we want to maintain our standard of living. The answer is more trade,  not less, and more government programs. 

To be clear, I wasn't referring to manufacturing in general.  I was referring to manufacturing of specific items.  I'm seeing lots of posts about how we should maintain the ability to make specific medical equipment here, rather than importing.  How could we do that, outside of the three ways I mentioned?  I should also note that I am not necessarily arguing that we should so do.  I'm just assuming, for the sake of argument, that we want to.

 

[The Commish]

I want big government and free markets. 

You can want whatever you like....that's not how it works.  That's not how it's ever worked, but that's for another thread.  Time to update our economic studies and principles and teach the realities of the global economy.