Why Factories Are Coming Back To The U.S.
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- Опубликовано: 8 июн 2024
- As factories closed and more companies moved their operations offshore, employment in manufacturing has declined over the years. But now the Biden Administration is spending big on industrial policies, such as the CHIPS and Science Act and the Inflation Reduction Act, to bring manufacturing, especially semiconductors and electric vehicles, back to the U.S. But some economists warn against the dangers of government playing favorites in a free market. So how exactly is the U.S. government convincing manufacturers to return? And will its bet pay off?
Chapters:
00:00 - Introduction
01:58 - Industrial policies
04:47 - Pros and Cons
08:20 - Way forward
Produced & Edited by: Juhohn Lee
Animation: Christina Locopo
Supervising Producer: Lindsey Jacobson
Additional Sources: EPA, White House, Department of Commerce, Center for Strategic & International Studies, Census Bureau
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Why Factories Are Coming Back To The U.S.
Allowing corporations to export jobs to third world countries, while they widen their profit margins and evade duty on effectively imported parts while evading taxes, is the biggest problem we have, right after lobbying.
Thats capitalism though
All we need to do is impose heavy tariffs on consumer goods from foreign nations, especially adversary foreign nations.
Then, we need a policy to bring in engineers, tech guys, and innovators who want to move to America.
@@LalyVang-rj6ni No, that is corruption.
@@farzana6676 America needs to primarily concern itself with developing its own engineers, from its existing population, rather than importing them.
There is a number of loop holes in the US legislature that are bleeding out economy dry. They all need to be patched in order to stop the bleeding. The reasons its happening are natural, and they are rooted in capitalism, buy low sell high. But the way this is allowed to be done has catastrophic consequences, but not for those who are in the game.
All businesses want to increase their profits. One way to do that, is to reduce costs.
By building factories in places of the world where there is cheap labor, they are able to do that. However, the money they spend abroad will not reenter the US economy, not in a meanigful way, but it will be spent abroad. Therefore, these companies should be held accountable to compensate the US economy through Tariffs and import duties. Yes, that may cause the entire offahoring model to become a wash, in other words, it becomes as expensive as producing at home, but that is the entire point!
Problems with Importing skilled workers.
When companies bring skilled workers from abroad, they get to pay them a lower salary, which the foreign worker is happy to accept even of there is a lock in period, because they know it is the price they pay to leave their less fortunate part of the world and come to america. This, however, disrupts the job market for job seekers that are already part of the american work force, which include those foreign workers who are now part of it.
Again, this serves only the interests of the share holders of those corporations, and no one else.
What we end up with is Lower Wages and Higher Cost of Living due to Raging Inflation caused by the Deficit of Money in circulation caused by corporations spending it on costs abroad + hiding their profits from tax liability in offshore bank accounts, which causes the government to print More money because it needs it to operate, thus increasing the global supply of USD.
The increase in global supply of money wouldn't be a problem if it wasn't for the tendency of money to coalesce, that is rich get richer. So those who make money as a result of this bleeding, this is the Upper Class and there are many people in it, we are not talking a few billionaires, those people are outbidding each other on luxury items, real eatate, high end cars, while the lower classes, that includes middle, are facing ever increasing costs of living.
The end result of this bleeding is the moment when the middle class completely dries out.
A thick, healthy Middle Class layer is a sign of prosperous sosciety. Nothing else.
YES! In a week we will have "Manufacturing Day" which allows our high school students and educators better understand the amazing opportunities in today's high tech, innovative, on-shoring manufacturing, which involves a LOT more than just assembly.
That guy who said politicians are ill equipped to pick winners and losers in the "real economy" is part of the group of geniuses who created the crisis of 2008. They picked the winners and it was themselves.
What genius was this?
I assume you mean the POTUS and Obama I assume, because you know nothing. Like the POTUS controls what businesses do.
Republicans only want share holder profits. Cut programs to help US companies so they outsourced, because America couldn't compete since other countries do give edges to businesses.
Jobs were leaving way before Obama took office. Obama was left picking up Bushes mess for most of his presidency.
That guy is total idiot, our government is picking US over CHINA, and that’s a great thing, let it burn.
This guy isn't talking about regulation, he's talking about direct intervention in the market in the form of subsidies. No serious economist opposes regulation, in fact, many welcome it as it allows the free market to take into account externality costs from things like pollution through environmental protection acts or making sure the free market is actually staying free.
As the presenter says, subsidies are often very targeted and somebody has to choose the target, that someone being a politician (or anyone else) is risky for the wider economy.
The guy who was saying this is from a libertarian think thank. What else did you expect?
@@chinguunerdenebadrakh7022But it’s worked in the past, both in the United States and elsewhere in the world.
Same with the Ship building industry,during the 80's more than 50 shipyard are operating and manufactiring for both commercial & navy ships,but today only 12. I hope the government will address this issue as a national security.
If the market is allowed to be entirely free, a lot of undesirable things begin to happen. I'm glad we're seeing this, a factory job was once viewed as a good lifetime thing and anybody could get
The growth of robots means fewer jobs for magats.
true but a simple course at a community college for under 40k is all that would be required to make 40+ / HR in a already high demand area.@@katzgar
Then stop complaining about inflation.
@@brotherbig4651 Bro what
I agree, it should be a "free market" but the government needs to help
The big problem with a market-based solution is that the market will always take a solution based on short-term thinking. That's because companies have to answer to their shareholders who do not think long-term. It's this long-term thinking where government policy can play a big role. A purely market-based economy can't respond to things like climate change or changing global politics. This has to come from a source not handcuffed by next quarter's bottom line.
Well long term solutions can be planned for in certain circumstances but the bigger issue is how the solution is determined. Private companies will pick the solution that has the most profit involved and that is not always going to lead to the actual best solution for the country itself.
@dennisp8520 The key here is that companies will pick the solution that involves the biggest SHORT-TERM profit. Even if a longer-term approach might result in better overall profits in the long term.
@taloweryus Many companies that I've seen look at long-term solutions. That's why they do manufacturing overseas. Wages and taxes are less overseas. They have been overseas for decades not just a quarter.
@@joeb1522 Sadly even those long-term solutions tend to only be acted on if there will be visible short-term share-holder profits. 'cause that's what CEOs keep their jobs / bonuses based on. And even when they look at long-term, they're still hyper-focused on the company, not the eco-system. Companies are designed to benefit companies, all other benefits (to workers, to the areas they operate in, to nations, to the world) are accidental byproducts that can come and go on a dime.
Its funny, those companies that all operate overseas because of wages / taxes have their HQs here and got their start here. 'cause they needed our level of infrastructure, R&D, and education (funded by us) to get started, and they need our money (from our higher salaries) to sell their products at a profit. If we drop our wages then we can't afford the profits (so they'll sell elsewhere, so they'll move their HQs there for tax benefits), our education / R&D funding will drop (lower wages = lower taxes) so we won't spawn new companies, and we'll race-to-the-bottom to outcompete third-world countries.... so we can all work in sweat-shops? Meh. Increase tariffs on imported goods, tax them properly, and if they don't like it and wanna leave? Leave. We can spawn new competitive companies (with our tax base, education, infrastructure, security, anti-corruption system) a whole lot easier then they can find a new profitable market, no matter what they threaten. Especially if N.America / EU / Australia commit to do this together. We don't have to just bow down to threats.
More like regulations are the issues
Learned these lessons in AP Govt and AP Econ in high school. A pure free market has blind spots. A pure command economy also has blind spots. The trick is a balanced approach, a well regulated market economy with strategic incentives
That seems like a mix of China and US?
100% the 'free market' people are religious zealots. economics is not a science.
@@Ilovecruiseyup. Best of both worlds.
Definitely. It's called Keynesian economics. It's the only thing that works.
Because funnily enough, 3rd parties have stakes in transactions as well. Pollution is in general, an external cost that isn't accounted for in a traditional free market. Educational institutions are in general, an external benefit not accounted for in an traditional free market. If any of the 2 parties is to be made accountable for the cleanup costs of it's operations, then the actual market equilibrium would be somewhere lower
The US needs to stop selling going to college/university as the only next step after high school and include skill trades/vocational instruction in the discussion to combat the trained worker shortage. Until the national, State, and local unemployment rate approaches 0.01% there is no labor shortage in the country.
Also, push the high school graduates to get certified or licensed after vocational program.
@@maroon9273 An American friend of mine once said that, when he was a teenager in the mid-1960s it is common sense practice that all high school graduates MUST HAVE A CERTIFIED VOCATIONAL TRADES EDUCATION AND TRAINING IN THE BASIC TRADES regardless of whether they go to college or not and this is common practice up to the mid-1970s and then it started to taper off when the place a HEAVY OVER-EMPHASIS ON COLLEGE AS A MONEY EARNER CAREER CHOICE!
But what they do not know is that having a BASIC trades vocational educational background gives you something to fall back on and it also gave rise to the DIY MOVEMENT.
In the late 1970s and throughout the 1980s up to the mid-1990s. He also mention a regular but highly experienced machinist working a small oil drilling company who values him and his staff so much that they even created a mini-school for him to teach newly graduated machinists and other technical people on basic machine tools technical skills and knowledge and all of the techniques and tricks of becoming a successful machinist until they reach the "MASTER MACHINIST" status grade.
That regular machinist saved his company millions of dollars in the mid-1960s because they do not have buy any spare parts from a contractor supplier which will take days or even weeks to deliver, so he just makes a duplicate copy of everything they needed as a spare part component to keep things running and he even has a foundry for heat treatment purposes.
Today that regular machinist is in his 90s and is still as mentally sharp and physically in good condition as ever with good eye-ear-nose senses. Partly because of good organic nutrition that has taken root in the late 1950s and became a part of his everyday life.
You're still better off going to community college for a BS/BA than vocational. I know because I did both.
The unemployment rate isn't counted properly. If you stop looking for a job, you're not counted as unemployed.
There's a few ppl in quick sand struggling to get out. The statistics guy counts 5 heads. Then 1 person gives up , so now only 4 are struggling. - analogy by freedomtoons
not only that people really need to consider if the field they wants is the right field for job growth and demand at the time...long term demand instead of short term..that is why many are leader toward STEM education
Ironically, the insane costs of college will probably make manufacturing more attractive to younger generations now.
You need a lot of knowledge to work in manufacturing. They can't get enough college education. Trust me I worked in the corporate top 50 in tech manufacturing. Trade training doesn't cut it for modern manufacturing.
I make way more than a buddy of mine with a degree. I've worked in the automotive manufacturer industry for years. Before that I built furniture for a Lazy Boy company. I did not hurt for money at any time. Yes it does take a lot of skill, discipline and integrity to do that line of work. It's not skilless
@@jimechols4347Could you please elaborate more, what do you mean trades don’t cut it anymore?
What is the average pay of manufacturing jobs? They keep saying good wages, but what is a “good” wage?
$9/hr
It depends on the industry. About $20 an hour for any serious manufacturer. But the real cost benefit is where these jobs are. They are not in the middle of San Francisco. They are usually in an economically depressed mid-west or southern town that has access to shipping. So, the pay goes a longer way.
For Semi-conductors, they are in the south-west and pay quite a bit more.
There are the low paying manufacturing jobs, but they usually can't retain employees as companies like Amazon are ubiquitous across the US right now and set the wage floor.
Well UAW is at 15, this is the most contradicting set of information i have seen from CNBC I bet they will take it down.
Anywhere from $17-$20hr but making that is the knew $15hr...In these times you need to make $26-$35 in certain states to keep up with the economy
the good wage is that you will need a 2nd job to afford food and rent
The US has labor shortage of skilled workers. I'm so SHOCKED!!!! If only US companies are willing to hire unskilled workers and train them. In 2021, PBS reported "One in 300 American workers participates in programs in which employers pay them while they learn.", and less than 1/3 of US workforce receive formal job training.
how hard to address that? Just import more people
There are plenty of highly skilled people outside of the US, who already paid for their training, either directly or indirectly by their current government, who would love to work in the US (and pay high taxes here, while increasing America's competitiveness and growth).
That doesn't mean not to hire Americans - we certainly need to keep doing that - but America has only been able to produce so many highly skilled workers. Let's reform immigration and bring these jobs back to the US.
Acquiring high tech skills are too expensive in the US. Colleges are hardly affordable for the middle class here and college tuition are still rising.
@@dspirit2 Corporations have more than enough money to provide their own training programs.
@@krakken- No. Why does the US need to continually incentivize brain drain in other countries? The reason we have lower level of skill is because we let the corporations leave and incentivizing foreign investment. The problem isn't that we have a lack of talent because there's a shortage of working age people, it's that we have a lot of people who are not talented. I'd rather see the population we have gain skills to provide for themselves and their families rather than constantly relying on other countries to produce talent and then have them move here.
Although the economy is too complex to understand, understanding the needs of the people is quite simple.
Actually, it's not too complex to understand.
let me fix your sentence. Understanding the economy is too complex a question for you.
Many others, including me, very well and truly understand what's happening and why.
before you ask, knowing doesn't mean you can profit. Monopolies have destroyed this country.
@@johnklaus9111way too cocky, but this isn't something about knowledge or intelligence. The economy is just way too complex for any overarching government to be deciding minutea of directions. As one presenter said, there's millions of individual buyers doing billions of transactions every day.
Government should only be giving vague directives, not plump 1 or 2 industry with all the money government can find at it. Such government heavy handidness can distort the market, create inefficiences (as investment and labor follow a less efficient sector) and ultimately slow growth across other sectors. Even without direct market distortion, government subsidies have to come from somewhere and it's usuallt through deficit financing from debt. Debt that someone in the American economy bought with their own money, money which could have been invested elsewhere.
@@chinguunerdenebadrakh7022 Thanks for making unsupported claims to fact.... whenever I hear "should" I usually "should" tune out the idiot that used the word.
there may be "millions of buyers" but the follow suprisingly consistent patterns.
Maybe study economics first and until then, shut your mouth.
In fact, most of our most successful industries have been started in just the way you say "it shouldn't done". (Let's see, roads, cars, computers, internet connection, the original phone and telegraph, etc.) The problem is weathly republican backers don't want to do what industries before them have done and hold out against the best interests of the country).
Every time that happens, you get this "government should" screed.
You need to accept that the deficit is just with you. There are lots of peole who are much more intelligent than you show yourself to be here.
Companies should give training to young or inexperienced people in the manufacturing sector (like 6-month or 1-year paid internship programs). If these companies are concerned about retaining the trained workforce, they should go for a 2-year employment bond before the training starts.
Prisoner's dilemma. If all companies offered some sort of training, everything would be pretty good. But if one company stops offering training, but everyone else does, then all companies soon stop offering training, and that's basically right now
@@Demopans5990perhaps the government should fund some or all of the training cost and provide other incentives
I hope this trend continues. I'll definitely be a plant/engineering manager by the time I'm 40 at this rate.
I highly recommend anybody interested in manufacturing from an engineering/business perspective to read "The Goal: A Process of Ongoing Improvement" by Eliyahu M. Goldratt.
That’s a great book! 10/10 would absolutely recommend.
We don’t have a free market. We have been subsidizing oil, gas, agriculture among others for years. Large companies buy up small innovative companies to thwart technological change and reduce competition against their own products.
Or regulate the competition out of existence. John stosssel covered it..
An example of businesses regulating out competition
After game stop, the gov passed a law that you couldn't do certain stocks unless you had 20,000.
The problem is that these acts will not change the economics that caused these industries to offshore in the first place. What's to keep this trend from reversing when it is no longer subsidized by the government?
It could be decades before that would happen.
Once there’s a workforce, families, communities & local govts that experience the economic benefits of these jobs there will be a larger constituency that will fight to preserve these sectors and jobs these industries provide, making them harder to offshore again.
@@Lotusheart19 of course people fight for subsidies they receive, chips being long-term national security strategic investment that cant be outsourced any more - but doesn't mean that it is profitable, or long-term sustainable.
it will be as big of a every year budget deficient as military as a whole is to usa.
for subsidies to work for long term, to provide a consistently good product long-term cheaply thats as good as a free market product, a country has to have zero corruption and high education level, and usa is not a country with zero corruption, only few countries are.
denmark has a score of 90 on Corruption Perceptions Index (CPI), that is number one country, but even that isn't a 100 points.
usa in on 24 with a score of 69.
can a .gov subsidies-based industry offer great salaries?
can a .gov subsidies-based industry offer cheap and ever evolving products?
how much will corruption have an effect?
we will see.
the fighter plane F35 development cost is one example.
it is good that chip industry and defense industry comes back to every country, from their own national security point of view. nobody has quite the incentive to offer a good product custom made for your own need as much as your very own defense industry.
AI Technology: Hold ma Bud light, Pal.
We'll wanna incorporate some more careful regulations about taking the benefits gained here and then running off with them. Tariffs, anti-espionage act.. and sadly yea, we'll have to keep doing some level of subsidization as long as our competition is doing it. 'cause if they do it and we don't well.. they'll always win won't they.
The labor shortage is more about wanting to pay less pay. Most of the people applying for the corporate work visa are locked in at home country prices while American born workers are looking for a living wage.
Whats a living wage? I don't think living wage means 1000 dollar a month car payment as well as eating out every night and two vacations a year.
I think it means nutritious home cooked food like veggies, rice, beans, lean meats, etc, a studio apartment, basic clinic healthcare, and maybe a phone service since that's required for pretty much everything. Then you hear herp derp but that's only existing not living, as if you need expensive vacations and car payments in order to live a good life
TRY LISTENING TO THE EXPERTS ON THE SUBJECT. Your opinions are NOT FACTS.
@@ajr993 Don't forget the hookers twice a week... to me, that's LIVING! ;-P
@@ajr993With inflation, it really is necessary to make 75k salary with what used to be suitable for only 50k
Not really. Theres a minimum amt required to pay your employees
Manufacturing is how to keep wealth in the country. It's the foundation of prosperity.
YES
It's a way to Keep, Attract, and Generate wealth. Along and combined with Property rights and Rule of law
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The US went from 38% manufacturing job per total non-farm payroll in 1945 almost linearly to 15% at Peak Japan (1980's) to 8% today. Report back when it reaches 10%. When it reaches 15% again, you might be able to claim re-industrialisation.
GLOBALAVERAGE IS 16% WE WLL GET TOWARD THAT NUMBER. ABOUT 11 NOW.
@@cstevenson5256 check St Loius Fed. You'll find manufacturing is 8% of non-farm payroll. Give it a few years.
Does the US even have the workforce for it? It's been a struggle for many companies to fill positions
@cabron247 certainly it does, as adaptations have occurred, they will occur
More has need, and needs not to continue supporting mercantilists in Asia despite your desire to keep subsidizing your brethren.
@cstevenson5256 what are even saying? Subsiding what brethren? I work in the chemicals industry and we have a hard time filling positions and so do a lot of our customers. A few of us from Illinois were sent to Ohio to give them a hand cause they were worst off than us in the Cleveland area.
The more accurate statement about "labor Shortages" in most sectors would be people are tired of working for below poverty level wages. The plandemic just made that issue more pronounced. The cure for the dilemma is 3 fold. One, pay better. Two, train people well for the work you want them to do. Three, get rid of the toxic middle managers many places seem to employ.
Agree with you. The gap between the top and bottom of the payscale in a company is now insane. Also, same here in France, very little real life training, so you get hundreds of thousands of graduates with useless degrees. Disconnected fron the job market.
@@r3dp1llI have a degree in finance and accounting and now almost completed my MBA, these are useless degrees. They don't teach you what the jobs require. They just fill your head with garbage information about the industry. I have been rejected so many times for ENTRY LEVEL job position because of no experience, these companies are ridiculous. It's making me depressed thinking about this situation and how my future will be.
You lost all credibility when you say "plandemic." I mean, was the Black Plague or Spanish Flu a "plandemic" too? They killed far more than this pandemic did. You ought to be shamed and made fun of 🤣
@@ShawnFXi am doing accounting and finance 😱 u making me scared
@@ShawnFX MBAs are practically networking degrees. you dont get them to get experience or knowledge. you get them to network with other executives to help get a job.
There isn't a global free market, China isn't free. Free market within the US, I think it's good to use our financial power to bring industry back to the US. As they say it is critical to our national security.
Just going to make things we buy more exspensive, China subsidized products are great for Americans buying cheaper things.
@@Ryanandboys Yeah the one small problem with that really is national security. China will cut us off when we go to war then we're screwed. We need to make more things so this doesn't happen.
We need to make things and we also need a talented workforce that is good at making things.
Sending any money to China, supports pollution, human rights abuses, a surveillance state aimed at the world, and it’s massive military buildup.
Amongst many other things.
@@tharindukottegoda989With a per capita income of 75,000 $ goodluck bringing back Manufacturing to the US. Also semiconductor jobs are high tech and largely automated, hence it is not going to create significant employment in the US. But I do agree with the security concerns that you pointed out.
Why are they concerned about the government playing favorites in the “free” market as if they don’t already do that? Lobbying is exactly that, the government picking winners. Until the government doesn’t take bribes I mean lobbying money there is no real free market in this country.
There is a free market, and you’re failing at finding a niche for yourself, so you’re blaming the gub’ment for your own personal inadequacy.
no such thing as Free Trade
100% and "economics" is a religion and not a science.
@1MinuteFlipDoc science can not prove truth, only confirm falsity, improving odds something might be true. Inevitably all things, even science, is faith-based belief.
There’s no such things as free markets. The market would render American manufacturing obsolete and U.S living standards would have to sharply decline.
What are the dangers of government playing favorites in a free market? Isn't that precisely what happened during and shortly after WWII? Isn't such industrial policy the reason for establishing the traditional middle class? The free market is only designed to exploit labor and resources to maximize shareholder wealth. The government - a well-run government, that is - is the cultivator of a high-functioning economy.
Manufacturing is a critical skill set - More of it needs to come back to US and EU
It won’t because it need labor hardworking and smart people. The EU and US population are becoming increasing lazy and stupid. The future is in Asia.
0:01: 🏭 The number of manufacturing jobs in the US has decreased by nearly 36% since 1979, but the government is implementing industrial policies to bring manufacturers back.
4:37: 💰 The Chips and Science Act of 2022 has attracted over $210 billion in private investments to boost America's competitiveness in semiconductors.
7:55: 🏭 Total construction spending in the manufacturing sector has increased by over 106% since November 2021, indicating a positive trend in the US market.
Recap by Tammy AI
i thought bots were against youtube rules. even if they are helpful and people like them.
The Cato institute is a conservative "think tank". While he talks about politicians and bureaucrats being ill suited to making economic decisions, he leaves out the "wealth individuals, sovereign wealth funds and the private capital industry are ill suited to taking into account the actual well-being of middle- and lower-class individuals as they only care about maximizing short term profits". "The Market" is not a magical and benign force, no matter what the Build It All In China advocates have been saying for years. Also, when we spend money inside the US, it is still here. If I pay my neighbor to do something, then they pay another neighbor, and so on .... but if I buy something from China, the money is gone from my community.
Your naive neighbor example shows you’ve never taken an economics class. Reminds me of broken window theory. Your neighbor can easily spend that money on Amazon or buy stocks, etc and it “leaves the community” - a nonsense term. The economist here is simply saying customers/ markets will choose what they want- and we should avoid using tax dollars to influence prices.
Price is a great indicator of efficiency- we all benefit when things are more efficient. Imagine your neighbor spends $25k on a Tesla instead of $40k due to improved efficiency- he now has $15k he can spend or use elsewhere. How do you hurt when you spend less on a tv or groceries?
@@Lq32332 It hurts when the capital leaves the country and guts an entire sector of the local economy which has ramifications on the general availability of job training for citizens. It's nuanced and depends on the industry and ability for labor to be trained in other productive sectors of the economy. Your asinine "never taken an economics class" comment can be used to justify complete free trade with absolutely zero protectionism. Do you think that every economist agrees with this position? Do you think they've taken an economics course before?
@@usernameryan5982Economics classes cover the incredible societal benefit of trade- there is no dispute at all in the study. You benefit every time you buy a good or service. They didn’t rob you, they provided a good at a price you were willing to pay and both sides benefit.
Our entire civilization is based on optimization, specialization, and efficiency. Trade (without coercion) is a sign of both sides winning. Imagine if you had to locally produce your own phones, gasoline, airplanes, etc. Trading is a hell of thing! Stopping efficiency at the invisible country line is asinine.
Correct! No matter what those who make excuses for greed say.
@@Lq32332His neighbor still got money from him. Are you actually saying the “Broken Windows Theory” isn’t true?🤔
Since the purpose of the government is by definition "for the people ", the government should be promoting manufacturing in the US with industrial policy. The concept that the whole goal should be lowering costs is false. The concept should be to employ more Americans in well-paying jobs. That directly applies to increasing the societal health and welfare. Pretending that the issue is too complex for us to understand is specious.
Here is a counterpoint to the guy who believes "the market will figure it out". Take the US nuclear power industry as an example. Back in the 1970s those plants were very expensive relative to new coal fired powerplants. But look at how much of a better value those plants have turned out to be per kilowatt hour of electricity next to the coal plant polluting and needing millions of dollars in fuel over that time period.
And now the inudustry is trying to pivot and sell smaller modular nuclear reactors SMRs. They produce ~300MW vs the 700+MW from the larger reactors. They are safer, simpler, and cheaper than their larger counterparts so they can be more quickly rolled out and implemented within the grid.
I like stuff.
Nuclear power wasn’t killed by the market, it was killed by the government and the hippies who even now in their old age still hate nuclear power.
Also he said that if we make the West an attractive place to manufacture then the market will figure it out. So YIMBY reforms (which boomers will hate), low tax burden and not minimum wage.
Back in the 1970s those plants were not a viable investment. Now they are hence the faster rollout of smaller modular reactors (SMRs). The market figured it out
Government overregulation, not the market, is what prevented more nuclear in the US
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Thanks for the segment.
Politicians ALWAYS "play favorites", if you donate enough or lobby enough with the "freebees"...
True, but hopefully you would agree that a microprocessor, battery, or EV plant is better in Ohio or Alabama than in China or Taiwan...
Would you what YOUR politicians to look out for your best interests if they were able to get a plant in your state / city?
@@bobroberts2371 Ask Senator "Pork Barrel" Mitch McConnell... voters get "bribed" too... ;-P
I would say that the market is ill suited to determine what is best for the people, not the other way around.
Facts. You could use there analogy both ways.
And yet the market will keep on doing that with unrelenting determination
The free market economy is a mythical political trope.
Sometimes I think these economists are on the Chinese government payroll 🤦🏻♂️
At least we know politicians are definitely on corporate America payroll
@@phamlam3720 who isn’t?
@@mack-uv6gnbernieeeeee
Lol why Chinese and not just American?
@@nearby222 because the manufacturing happens in China most, if it leaves that hurts China
Great report!
Every countries need some level of protectionism to keep both jobs and market shares internally.
Exactly, we need to let more of these highly skilled and smart immigrants come here legally and make the barriers not so crazy high. It's so dumb, we'd rather force all this great knowledge to other places than welcome it here
We also need lower skilled workers since Americans rather live on welfare than work, farmers forced to hire Mexicans to actually do the hard work.
Or just burn America
@@Ryanandboys its not the work its the pay. They don't want to pay Americans so they hire foreigners who work for less money. If Americans were really "lazy", the US military wouldn't have foreign policy that allows immigrants to come here with no hassle and get the right to call US citizens "lazy".
Spoken like a nationalist xenophobe. Why would smart well educated people come to a backwards drug induced racist society besides uneducated 3rd world people from Mexico and India? US used to be good opportunity country after WW2 but it’s not the case in 21st century.
@@marcusmccloud8394liberal aren’t smart enough to understand this, they just listen to what they’re government tells them and they automatically believe it 😂
Extremely complex and expensive manufacturing (semi-conductors) seems to be making a comeback but don't rule out the US continuing to outsource it's cheaper, lower labor, low value add industries to Mexico & SE Asia. It's important to have these industries and diversification in our energy portolio but was should also remain practical and have realistictic expectations about the world - that Oil/Gas is not going to be "replaced" any time soon nor will every American be driving an EV car anytime soon in the next 20 years. There is simply not enough Lithium/Cobalt for that to be a reality and our electrical grid isn't currently built to support it.
Wow love this kond of presentation... Agrees and disagrees.. in one video
America needs more people starting their own businesses and also doing well.
Good luck finding capital.
at the end of the day industrial policies work and are crucial for national security. The free market isn't free anyway as there are huge state backed Chinese firms that skew market
Why ?
Because somebody finally realised that building up your strategic rival is bad for American national security . I wish they realised that 30 years ago and restrained their greed
Exactly.. But thats the way capitalism works. Maximize profits at all cost. It's a short term game....
It's just capitalism doing what it does best.
Feesl great to hear this!
Great video
On what 2 invest in
Just in time for the work permits being granted😞🤔
🎯💥 Indeed this will be a race to the bottom. Notice no word of any of these jobs being unionized.
Pro tip....they aren't coming back. This is propaganda. So don't let it shape your conspiracy theories.
yes, recruit Central Americans, Indians, and Filipinos for temporary work visas to work in manufacturing plants and agricultural farmlands to crush the unions and I'm willing to work in the US for cheap because becoming a union member doesn't personally fit me that I hate paying monthly union membership dues.
Taiwan's TSMC is not integrating well in the US. It complained that setting up factories in the US is more expensive than it had thought and there are not enough skilled labor. Simply giving out generous government subsidies is not sustainable in the long term.
THERE WASNT SKILLED LABOR IN tAIWAN 15 YEARS AGO, THERE WAS AND CONTINUES TO BE INDUSTRIAL POLICY THERE HOWEVER. SIMPLY OUR DEMAND OUR PROVISION, GET YOUR OWN DEMAND.
ASIA HAS BEEN DOING IT FOR DECADES, T IS WHAT ASIA DOES, INDEED SO MUCH THAT CHINA HOUSEHOLDS GET 60% LESS OF CHINESE GDP THAN US HOUSEHOLDS GET OF US GDP.; THAT IS HOW THEY PROVIDE SUBSIDIES, SUSTAINABLE FOR THEM. SO FOR US.
@@cstevenson5256 That was 15 years ago, we are talking about right now. If the US has a skill labor problem then our transition to high end manufacturing will not be smooth.
@dspirit2 doesn't have a problem, much less than elsewhere, just has an issue with volume, certainly no more than elsewhere. Likely more a deficiency on part of TMSC in ability to manage cross-culturally and ability to adapt practices.
@dspirit2 further, in US, 15 year Olds are being taught CAD CAM CAE IN 9th grade. My niece was and we have Workforce Development Boards in every region that direct regional spending on workforce training needs, easy to scale whatever needed of partnerships between funders, uni service provider on need of local business. Just moving youth back from gig work and refocusing creative on manufacturing as techno craft. Easy. Our urgent production is tech based and 5 times as efficient than China, more productive on average than Taiwan. Taiwan is merely in Fab.
I think one panelist is definitely wrong. Fossil fuel industry is not a good industry. So government should make decisions that curtail this sector.
i remember when this same news network yelled to high-hell that factory jobs weren’t coming back to the States….
We should pick & choose we need chips, batteries, lithium mining, a lot of pivotal technologies of the future that will drive the future economies we need to dominate those markets
If we bring back manufacturing I hope there are strict laws so that we don’t bring back pollution.
It will be regulated
Modern technology makes manufacturing much cleaner than back in the days
There are. That's why the manufacturers left, to avoid following them. And now just look at the terrible smog the people of China have to deal with daily because we want our junk cheap and don't care about pollution if it's far away from us.
When I looked at the thumbnail one thing came to mind and that was semi conductors which was addressed in this segment .I don't think people want to be so reliant on technology but...
Humanity as a species has always been reliant on technology. Technology is what allowed us to live across the globe and to thrive. There will never be a time when humans don’t rely on technology and in this modern era semiconductors are those pivotal thing needed. Even something as simple as your toaster has a chip inside
In britain working as a skilled man a patternmaker I started to be treated as something from the 1890 s
Because the USA oligarchs failed to exert control over the other countries around the world. Industrial production and natural resources are paramount, a country which depends of foreign countries for its needs, it's vulnerable.
The problem is that the US consumer market is extremely big. The US market is larger than the consumer markets of EU and China put together. There isn't a single country in the world that is self-reliant.
If you actually look at the trade data the US is literally the fifth least dependant on trade of any country of the world. It's actually the closest to self sufficient. The US imports a significant amount of goods but that pales in comparison to the $27 trillion economy that's 70% dependant on consumers.
It's not vulnerable at all without aim to contain another country's development, like China.
Don`t subsidies for local production violate WTO rules? I remember the conflicts between the US and Europe over subsidies for Airbus and Boeing.
Haha i think the US violates alot more than just WTO rules.
Yeah, but no one cares. China and Japan have being doing it for decades.
WTO is run by poor countries who are seeking wealth transfer, so that bias is unhealthy for countries like the US.
@@davidflorsek9105lol WTO was created by the West and currently greatly benefits largely Western multi national corporations.
@@momo8200yes but they prefer emerging markets where they can get more profit when using workers there. So WTO goes hard against any practice that hurts that.
I almost missed your reference to high tariffs imposed by Hamilton to protect our mfg. Yes, this was critical for our early move into mfg and the only thing the government should do in terms of putting a thumb on the scale. Subsidies, bureaucratic direction, etc., all lead to corruption and insider deals. Eventually.
All these different people talking about the advantages of industrial policy, and then one single guy from the Cato Institute talking about how it's bad. Why is CNBC giving this guy a platform?
So… You mean we’re finally grappling with the truth. Jobs weren’t lost to automation if it allowed 100’s of million of Chinese to come off the farm?
If you wanna be successful, you must take responsibility for your emotions, not place the blame on others. In addition to making you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life...
the market is profiting if you are using a good broker or account manager to help out with trades or provide signals
Thanks JB
American Made MFG 2023 Conference is in Tampa, FL
The government interfered when they allowed these corps. To go overseas to begin with. We’re just trying to get back what we lost.
Good old George W Bush was responsible for all the over seas manufacturing about 22 years ago. He was a moron then. He's a moron still.
Facts
So now the Government stepping back and letting the free market seek workers out of the country to save money and/or improve the product is “interfering”?
I imagine that you accept the more common concept that the Government “interferes” if they step-in with new regulations and tell a business with more details how they need to run their company as well.
So it seems by that logic, the Government “interferes” no matter what they do or don’t do. So why use the word “interfere” if it’s impossible to not “interfere”?
FYI: I’m not simply for or against more or less Government regulations. I think it’s a case by case thing. But your use of language in that comment struck me as ridiculous.
They still wont pay a living wage
Remember when the big deal was being made about foreign car companies (e.g., Toyota, Nissan, VW, BMW, Mercedes) moving their assembly plants to the USA? Yep, I'm old...
Let’s put it simply - when the line between Government and Industry is wafer thin as it is in the case of China, it is the US Industry going up against a formidable competitor whose single minded focus is to go toe to toe with the US nation. So unless the US government, plays a role, US government, taxpayers and industry are going to lose.
"The market is going to figure that out".................I hate economists. The market is going to figure out how to make money not help people, we are so cooked smh. GGs no Re
That's like my USA 🇺🇸 ❤ need factories back!!! Will bring innovation 💡 and R and D!!!
1950-1980's American goods exported world wide and manufacturing was booming and workers enjoyed good life. Keyword: exporting.
If the American goods are much more expensive, how many people in the world can afford it????
We are seeing big growth in these sectors and it's great and one thing that was not mentioned in this video but is a huge part of it it's not the biggest part of it is that China Rose their head a little too early in the game and because of all of the backlash and China's one-child policy they don't have enough people to keep their factories going and it's becoming more expensive in China and people are getting out of China because of the obligate vyas implications of war and they are going to places like Vietnam and Mexico and the United States China in a way really screwed themselves here because all that cheap manufacturing they had is leaving it an alarming rate and the u.s. is capitalizing by incentivizing companies
Kkkkkkk...um país cheio de obeso acha que pode competir com um país de 1, 5 bilhão de habitantes....demente.
I was expecting to see a big drop for office buildings: 08:36
I consciously shop for made in America products. I'm so glad to see this nation make a comeback
True. Every country citizens should do the same
@@firstpostcommenter8078You must think everyone has the money to do that.
@@shadowslayer9988 Not US citizens but Chinese, Indians etc can do that. Buy products from their own countries., Boycott products from USA
Not saying this is lying but majority of consumers can't afford made in USA.
Now this is a news that i thought was never possible.
How ironic. Our government giving big incentives to companies to bring the factories back to the USA is the same government that gave these companies huge incentives to move the factories overseas back in the 1970s and 1980s.
good we need more jobs here. Iam tired of us outsourcing all our opportunities to others. Other countries do nothing fo us when we need it and they stay talking shiii while they still have there hands out for economic aid
I have a feeling those jobs will end up going to the people who crossed the border with a very low wage.
@@GarmentofPraiseSewing Thats very true.. I like how you think.. This country is going to shii.. I hate Biden. He ruined everything for everyone . Russia and Zelenski did too.. Zelenski still asking us for money after we are running out in October. My birthday is in October. Ill be lucky to afford beer and food for it when inflation goes up
I want to come to work in the USA. I'm a Canadian citizen
May I ask why?
@@cathrynesten4364 the reason is I want to pay less taxes and live the American dream
*"Since 2000 alone the US has shed about 5 million factory jobs." (Vice News, 2016)*
American citizens don't control when factories move overseas. If Congress ALLOWS these manufacturing corporations to ship jobs overseas then CONGRESS is also responsible for PROTECTING our federal benefits. Congress cannot have it both ways. You either protect our jobs or you PAY for a generous social safety-net.
Also, the unemployment number put out by the USG is unreliable because it only counts registered job seekers. Total, real unemployment is unreported by the MSM.
There's no labor shortage, just a shortage of citizens who can afford or are willing to work for stagnant low rates. This is why they won't close the borders.
inflation will be permanent if so
Congratulations US!! Your factories are coming back !! We will love seeing the US without huge homelessness!!
We need to expand our shipyards, place orders, and train the additional workers.
@10:40 excuse me sir, could you define what you consider 'good pay' for a jobs like this?
Have fun trying to get Gen Z to work in factories. You can't even get them to work for that matter.🤣
Hopefully most of them will come back
So you want prices to increase again?
@@rack9458do you want the jobs to come back or not
@@JJN631 Basic manufacturing jobs should remain overseas as it keeps prices down and reduces inflation.
@rack9458 but if prices are down and demand is still high, doesn't that still increase inflation? The increasing U.S. manufacturing will stimulate much needed growth and sustainability to our economy.
@@Spider_aaaahhh High demand for low priced goods does not affect inflation.
that is very good news we need things that are made in USA, quality products are made
Bringing high volume low margin manufacturing would be disastrous and subsidising it should be discouraged. Low volume high margin and value manufacturing should be restored with emphasis on the nations strong lead in industrial automation and combined with a massive reskilling effort and greater emphasis on trades we can definitely bring high quality manufacturing back to the forefront in the US. And that change is already happening in some states like Georgia. A great example is rail manufacturing where Siemens, Stadler, Alston and Bombardier all are either expanding or constructing massive new factories. Also in terms of clean energy the new recent legislation allowing for lithium manufacturing would greatly help in expanding battery tech.
FINALLY!!! (I'm exhausted of the "made in china" thing).
Well it was a good thing but that have passed now... progress and productivity real one must commence for humanity sake
I remember when it was "Made in Japan" that was the cheap crap (before electronics). Yep, I'm old... ;-P
According to the Smiling Curve, Manufacturing is the least value-added in the production chain compared to R&D in the front and Sales and Services on the tail end. This is why factories are so sensitive to things like tax breaks, labor costs, and pollution controls, and explains how deep in trouble China is having largely failed to develop a solid grasp of the other ends. This is also why all this investment in domestic production likely won't boost our economy as much as education per dollar spent.
It is important that we maintain at least some capability to make things, but it's even more important to be resilient by having a diversity of supply sources, so that a disruptive shock -- including from disasters within America -- doesn't cripple the larger movement of goods and information that our economy and lifestyles depend on.
Too many takers, not enough producers. From a financial standpoint, I think you are correct. But from a prices standpoint I think you are wrong. The low labor force participation rate, the low amount of people producing goods, and the lack of capital investment in manufacturing has been steadily increasing costs. The core issue is that you can have all the R&D, Sales, and Services you want. But it requires the physical good in the first place.
I think there needs to be a balance in the workforce, and right now the US is out of balance.
China's biggest problem in terms of manufacturing was they were too reliant on exports. They don't have enough domestic consumers for the sheer amount of things they were creating, because for the past decade or more they were the world's factory and made everything from clothes to car parts. Now the pandemic hit and consumption took a nose dive. It's recovering, but countries are seeing it is not good to rely so heavily on China so they are pulling back and the US in particular wants to rely more on domestic production with some imports to supplement that, but far less coming from China. This has effectively put China in a horrible place because they relied so heavily on production in their economy. Couple that with their own domestic consumption being down and their housing/financial crises.
If you are not developing, and then producing new technologies, but buying them from someone outside, you are already behind technologically. We are entering a stage where semiconductors, AI and similar technologies reach such levels of complexity, and as a result, their impact, would they be in the hands of others, is far too great.
If the US wants to keep it's world dominating power, it has to re-build it's foundations, meaning production. It already has a developed services economy.
Speaking as a Eastern European.
İt's just like farming. Farming in the US and Europe is not profitable. You actually lose money when you farm because very cheap options of fruit, grain and vegetables are available from overseas. So government subsidizes farming, artificially bringing the prices lower by paying up the difference. İt allows farming to continue and not disappear. Because if there's a war or crisis in shipping, you can import cheap foods. You can't even import any food and your country will starve if you don't have your own native farming industry.
The same thing is happening now with the manufacturing industry. İt's actually not profitable. You lose money if you manufacture in the USA. But in order not to "starve" later on at the time of crisis, government has to artificially keep the certain industries alive.
The solution is simple. Paymore money for local production, cut back on lavish lifestyle (as compared to other countries that is)
this is good news!
how long will it take to train everyone, since our workers are not top tier anymore?
are most people will to work, cause one of the reason many factories moved out starting in 2008, too many people complain their pay is too low, work long hours, etc.?
how much will we charge, since made in the usa will become more expensive due to salary differences in other countries?
where are we going to get raw materials??? are we going to start mining and process our own raw materials or buy it from the country that controls 90% of the raw materials?
The claim that there isn’t enough EV charging for road trips in the US is false. You can travel coast to coast using Tesla's Supercharger network here and across the world
What about non Tesla cars?
@@hellzshotgun non Tesla chargers are at least 100 times more than tesla superchargers in the US.
@@hellzshotgunWhat hole have you been living in? Tesla has opened up it's charging network to a majority of the other OEMs.
It's not where it needs to be, it's good for the small amount of people that have EVs. But for the number that they want to be at with EVs it's nowhere near enough. You would see them as much as gas stations if we had enough.
Lot of the not Tesla car companies have adopted the Tesla charging framework, so in the future they should be able to use the Tesla charger network too.
This is more about trapping long-term companies with short-term implementation of incentives.
There's a long way to go but shipping costs will eat into the cost of imports. Theyve already increased substantially since covid, as they continue to skyrocket, they'll make "cheap" imports not so cheap anymore.
how long?
How about all the manufacturing in Texas? That destroys this guys argument about factories opening in purple states only.
Near me in georgia to. Plus in TN and Alabama and the carolinas. 😀
There is no such thing as a free market. There are always rules to keep things with the rails.
A critic would say letting markets decide winners and losers leads to capital flight in the long run. In the case of the US, we are increasingly having to worry about China and its navy, but we don't have the manufacturing here in the US anymore to meet our needs for self defense. We'll run out of missiles and ammo long before the Chinese do, and the Chinese possess the advantage of numbers. Something in our civic engineering of the country has gone deeply astray if embracing free market economics leaves us at the mercy of foreign adversaries.
The US will remember very soon why many of these manufacturing jobs left in the first place. Productivity levels and productivity growth is substandard, if these don´t improve significantly manufacturers wont be able to compansate for higher labor cost. And then there is the lack of technical skills in many sectors. After so many years of making things elsewhere, the know-how is gone, There is not enough expertise in the pipeline and immigration policies will not help. And finally is the issue of profitability, many of the companies moving back manufacturing to the US are not making a profit. They will question their stay on US soil in a few quarters or years for all these reasons.
Yeah and you can thank greedy Republicans (board of directors/ Wall Street) for putting us in this situation.
Yeah...then bringing industry back. These jobs are very high paying jobs. That thesevworkers will have a great income. And spend money back into the economy on everything....entertainment...housing...travel...kids...paying tax money back to the govt. Furthermore...as new high tech factories are built...and more raw materials supplies needed to build the factories and the material to actually build all of this. Increases even more jobs.
The US can become the manufacturing powerhouse of the world. More skilled labor and autonation is needed tho
Where are you from? Saturn? The US cannot become a manufacturing powerhouse because of high wages and workers attitude. How many American are willing to work on shift and on weekends??? Think again.
@@SW-fy8pq I'm deeply sorry to disappoint you but manufacturing just like any other industry is becoming more technologically advanced. I'm talking about skilled workers that are gonna operate and maintain machines buddy not the average Joe with a screwdriver. Machines are taking these jobs for good. Look at South Korea. A much smaller nation with 1,000 robots per 10,000 workers. The nation is an absolute manufacturing behemoth. That 1,000 robots per 10,000 people is only just entry level to what's coming in the next 10-15 years and beyond ofc. The US can become a powerhouse because it has everything it needs to be one.
The government doesn’t pick winners and losers; we do. We learned that smoking was bad for your health and chose to get politicians to prevent advertising something that kills people. That might even be an infringement of a corporations freedom of speech, but we wanted it and the government did it
Not even a mention of the global supply chain breakdown influencing companies to onshore.