We all learned something (hopefully) in school that the so-called Industrial Revolution began in Great Britain around 1760. New methods of production and the rise of mechanical factory systems spread worldwide, replacing the old homegrown business model.
Well, guess what? That industrial revolution has never stopped. Business and trade continue to evolve, even across borders. Cost effectiveness and trade have figured into overall production and cross reliance for generations.
When RCA discovered it could no longer produce televisions at competitive costs in U.S. factories, they shipped production to foreign countries.
When U.S. steel companies could no longer produce steel at competitive pricing, steel mills closed.
Why you ask? The U.S. workforce was too expensive and U.S. companies were too slow to modernize. Foreign companies filled the gap with lower wages and innovations.
More than 90% of North American companies have relocated some, if not more, of their initial production and sourcing over the past years.
Auto makers discovered that parts are parts, wherever they are made and assembling them here was both economical and cost effective.
Manufacturing and service are two distinct sectors of the economy. Manufacturing involves the production of tangible goods, such as automobiles, electronics, or clothing, through various processes like assembly, fabrication, or packaging.
In the meanwhile, American wages have increased well beyond our foreign counterparts. Both the manufacturing and service sectors contribute significantly to economic growth and, while homegrown manufacturing declined over the years, the service industry increased to where it is now over 70% of the U. S. output.
Service refers to the provision of intangible activities or assistance to customers, such as healthcare, education, banking, computer sciences and on the physical production of goods, service emphasizes delivering experiences, expertise, or solutions to meet customer needs.
The U.S. economy grew steadily with this change in the workforce, but the far right and extreme conservative push for the old days is becoming a lesson in reality.
Data suggests that the U.S. economy is not ready for a wholesale shift to manufacturing and that it would take years to ramp up production capabilities.
Putting it bluntly, it would take billions of dollars and many years to build new, or renovate, production plants to necessary standards. Once we got there, today’s U.S. labor costs simply could not compete with foreign models.
Then there is the distinct reality that once large manufacturers commit to catching up with foreign competitors, a regime change in the U.S. would, in all probability, again call for change.
Trade deals, tariffs, and political changes would have already resulted in new trade routes and production, leaving the U.S. in a lurch.
The current administrations doing away with USAID has stopped humanitarian assistance to other countries. Ask yourself where that medical and food supply came from? American farmers are going to be hit hard, along with the possible destruction of medical and food trade routes to foreign countries. Along with that, all the good will the U.S. has built up over generations will disappear, along with close allies.
Even cutbacks on such things as food stamps will have devastating effects on both the needs of the people in need, along again with the farms that produce the foods.
Political slogans and promises of a better tomorrow sound enticing to voters, most of whom already have the highest living standards in the world.
The current push will only make the rich richer and leave the voters and party followers with nothing new, except a dwindling Constitution.
