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>But US manufacturing is primarily high end - stuff that’s extremely exacting, precise, and technologically advanced that sells to corporations and governments.
by Rinzler89 2y ago
>But US manufacturing is primarily high end - stuff that’s extremely exacting, precise, and technologically advanced that sells to corporations and governments.
European here: I have some products made in USA in my house besides Intel CPUs and Micron DRAM/NAND: a plastic AeroPress coffee maker with paper filters, a plastic Oral-B toothbrush. Nothing fancy or expensive. Do those items strike you like some exotic, precise, high-margin widgets that only the US can make? Spoiler alert: they aren't, even after the EU import taxes and VAT.
So how come US can make mass market commodity tooth brushes and plastic coffee makers locally considering the high wages but we pretend it's not possible? I'm not american so I don't have the right perspective as the locals but from my vantage point it doesn't seem impossible that the US can make other stuff that's usually offshored to the cheapest bidder in Asia. To me, the issue seems corporate greed that refuses to do it, not that it's not possible to make profit making commodity goods in the US as the proof is in the pudding above.
Another proof is that I have a shit tonne of Swiss-made commodity goods in my house that aren't some nanometric precision widgets but for example my plastic trash can and another toothbrush, and Switzerland also has some of the highest wages in the world.
- JumpCrisscross 2y ago> how come US can make mass market commodity tooth brushes and plastic coffee makers locally considering the high wages but we pretend it's not possible? America’s advantages are deep, risk-taking capital markets and cheap energy. Our hurdles are high labour costs and stricter-than-China environmental rules. Our advantage against China is in energy and scale-intensive production that can be automated and done cleanly. This applies to most extrusion methods, which make cheap goods. It also applies to heavy machinery, which is why we make lots of big engines and electric motors.