For quite a few years now I've argued with people regarding off-shoring manufacturing.
The free-trade advocates say that moving manufacturing to the most-efficient (i.e. cheapest) production areas (typically China) results in the greatest efficiency and therefore the greatest net good.
My counter-argument is that that argument falls apart when it's your job that gets offshored. Now the product you helped manufacture is cheaper, but you can't afford it anyway because you're out of work.
If not your job, it could be your spouse's, your children's, your friend's, or your neighbour's job. Regardless, someone will lose a job, and you, if working, will get to pay the social costs of their unemployment. All of a sudden, that cheap product at Walmart doesn't look like such a bargain.
Some years ago, a high-profile American politician said (I paraphrase) "Our people in California design the I-phones, and then the phones are manufactured in China, and thus each part of the global village does what it does best, leading to the greatest overall prosperity".
So how many designers does Apple employ in California vs. manufacturing personnel in China? I bet it's NOT a 1:1 ratio. 1:10? 1:100? Worse?
And what would this politician have said if her job were to "outsourced" to China? It's easy to farm out the jobs of the "deplorables", harder when your own job disappears.
Besides that, the promised cheaper prices often don't happen - it's simply more profit for the company.
And regarding those who say "Those jobs are gone. They're not coming back. It's all done by robots anyway!", I reply "If it's all done by robots, why is it cheaper to manufacture in China?"
I'd better quit ranting, but do feel strongly that the 1st World needs to bring back its manufacturing.
My question is what is your solution?
Ban the American people from buying products overseas and forcing them to buy what would become cheap expensive unreliable American made products?
Im not knocking USA products, I am stating what happened many decades back in a place called the USSR. The country collapsed.
Once a company competition is extremely limited quality goes down and profits go up. A closed society is not an answer. Competing on the world stage works better for the population.
I am not an advocate of trade with China, in fact against it. We buy their products and they use the money to build up their war machine. They are catching up quick. Yet many USA jobs and income come from doing business there. Anyway, it is against our best interest doing business with them, yet if we dont, the rest of the world still will and USA companies will struggle to compete.
The whole rest of the world is out there, tell Americans we cant buy from them? China's economy I believe is currently in contraction because of the now offshoring of businesses there.
BTW Apple doesnt build iPhones. They contract them from a company who custom builds their devices. Foxconn is a Taiwanese company. However they were forced to go to a Chinese company after worker unrest there with is Foxconns rival Luxshare as another source.
Anyway, companies are slowly moving offshore China, China trying to stop it. Ironically for example Apple Watch is made in Vietnam.
This isnt just about Apple, it's what companies need to do to survive and prosper. The biggest name in chip making right now and largest capitalization in the world is NVIDIA a USA company whose chips are made in Taiwan which is a republic of China. NVIDIA overtook Tesla for that crown. While on the subject, the only reason Tesla showed profits like they have in the last three years are their Chinese plants. Before that they never made money in the history of the company.
This is the price of freedom, it works best rather than being dictated too. The job market here in the USA is so strong companies struggle to hire.
BTW- When things go south what do you tell these people when you outlaw USA companies manufacturing overseas? Do you then ban overseas companies from selling their cheaper better products here?
https://www.apple.com/job-creation/
BTW- the largest USA company in the world by capitalization is NVIDIA. One of the most important developers of AI chips. TO we force them to bring manufacturing home to the USA and let some other company grab the world stage from them?
They employ less than 30,000 Americans at least Apple has 154,000. But this isnt a contest. If we dont compete on the world stage our country will be overcome and less advanced by other countries.
BTW - Im sure you agree exporting products are a bonus to American labor? Correct? What will happen if we cant do that anymore once we ban our companies doing business overseas?
The largest exporter of American made cars in the USA is not an American company but is a foreign company. BMW, in fact BMWs largest auto manufacturing plant in the world is here in the USA, Last numbers I knew from US Dept of Commerce was in 2021 (during and right after coved no less, exported 10 billion dollars worth of cars. They have now held that crown for 9 years in a row.
Anyway, world dynamics is a complicated thing and free trade has to rule. AS long as it is fair.
