5 ms·
The two points, vaguely, seem to describe thoughts I've had, but lots of your brief statements are either over-simplified or outright wrong: > USA completely m
by thephyber 9y ago
The two points, vaguely, seem to describe thoughts I've had, but lots of your brief statements are either over-simplified or outright wrong:
> USA completely moved their means of production to Asia
> These jobs are just missing
> Until the lenders crash, because they can't pay back
> Needs to, because he doesn't get payed well
> Companies aren't borrowing
> It's like capitalism forgot how capitalism work.
We live in a time when consumers have been trained (err brainwashed) by corporations, which have the advantage in the information asymmetry of sales/marketing/behavior. Consumers are saving more than $2k a year on cheaper goods because of globalization, but they only look at one side of their ledger. They didn't bother to save more, to reinvest in their own skills/education, to start their own businesses. Instead, consumers are increasingly spending more on personal entertainment, squandering that savings generated by a global supply chain.
Companies are borrowing and spending MASSIVE amounts to repay their investors. Some companies have made huge capital investments (Amazon, Apple, Nvidia, Microsoft, Samsung, Intel, AMD, Tesla/SolarCity, pharma, and all of their supply chains). Even fintech is making big investments (feature-filled ATMs, check scanning, Visa/MC/AMEX machine learning of spending behavior). The problem is that all of these companies are huge, which means that they are already very good at optimizing and scaling their growth. This means that productivity rises, so the employee headcount rises less than linearly with product growth.
Looking at more traditional types of manufacturing: Caterpillar, John Deere, Polaris, GE, Boeing, etc are all more productive than ever. But their businesses are also more susceptible to changes in the value of the US dollar, or geopolitical events which may close borders or affect intellectual property enforcement.
And (non-Tesla) car manufacturing left Michigan for better markets. In the beginning, the South was advantageous because of weaker unions and lower cost of living. Later, Mexico was superior because of the low labor costs matched with superior export market (lower peso value and large number of free-trade countries to export to). In that market, the US was at a disadvantage because it was such a strong and mature/developed market.
Capitalism isn't a person. It is an observation of a system, which doesn't really describe modern America and hasn't for nearly a century. We are far more of a hybrid capitalist/socialist since we have high taxes, high regulation, high barrier to entry in many markets (due to licensing requirements), high employee/labor protections, intricate zoning and NIMBY issues, etc. We live in a time when rent seekers and government regulation have largely skewed our markets. Lobbyists have extended Intellectual Property lifetimes and patent trolls have gamed our system to suck profits out of the more innovative companies.