I applaude Junko's spirit and bravery for even proposing the US try to bring back high tech manufacturing jobs. Most Americans would agree it would be great in many ways if we could do this (i.e. reduce unemployement, trade gap with China, Japan, etc), rejuvinate national pride, and eventually lead to manuafacturing competitive advantage, etc.
However as pointed out many various replies the challenges are hugh, most of all having the political will to do this. However all hope is not lost...
"Political will" generally follows economic opportunity, as such I believe it's a matter of proving the best/most profitable option for US based high techs is to manufacture in the US again.
This will take deep financial analysis by our best economists based on NPV of future returns under various scenarios, only by showing that US based manufacturing will provide the best ROI will we be able to escape the status quo and start the ball rolling to bringing manufacturing back.
Such financial analysis would surely be able to identify the critical factors for success that need to be addressed before manufacturing in the US would make the most financial sense.
In my view this should be one of the top issues for this year's presidential election.
What are we waiting for ???
David Fatlowitz, MBA
"The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state."
"The rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion"
"Every tax, however, is, to the person who pays it, a badge, not of slavery, but of liberty."
On retaliatory tariffs:
"The recovery of a great foreign market will generally more than compensate the transitory inconvenience of paying dearer during a short time for some sorts of goods."
- Adam Smith, "Wealth of Nations"
Technology is a fickle master. I have to agree with Jobs' assessment that assembly jobs are not coming back to the US. However, I would also say that they are not going to stay in China either. Many assembly jobs will simply cease to exist as automation of those tasks becomes more efficient than even the cheapest human labor. Focusing on R&D, infrastructure surrounding the acquisition of natural resources, and increasing energy production should take precedence over "bringing back" assembly jobs. A great many of those jobs have a limited lifetime. They are already not economically feasible in the US, Japan, and Europe. Soon they will not be economically feasible in China either. Eventually, perhaps sooner than we assume, they will not be economically feasible anywhere.
I see people mentioning Germany a lot, but let's not forget that US unemployment until 2008 was considerably lower than Germany's. Only during the Carter Administration, and now, would we consider 7 percent uemployment to be something to rave about. Before now, it was something to worry over.
In recent years, the unemployment rate in Germany has been as high as 12 percent, which would have been unthinkable here as something acceptable, until the past couple of years.
And manufacturing jobs aren't what had our unemployment rate down to the 3+ percent range, in recent years. So clearly, there's something missing in this facile mention of the German economy as being the answer.
Yes, no doubt taxation policies can be used to modify behavior. But let's also not forget that it was just this type of government incentives programs that precipitated the 2008 crash to begin with. And that even today, the housing market (which got the crash started) is still not recovering. That's how hopelessly it had been bloated by questionable policies.
Let's not jump from frying pan into fire, is all I'm saying. The emphasis on manufacturing is simply misplaced, if people think this is the answer. The jobs it will bring back, if manufacturing is brought back, aren't going to be as numerous as many seem to think.
It is one of the most basic things..
It goes back to Thomas Jefferson and Samuel Adams “Social Contract” the people give up some rights and pay taxes in return the government to protects the people.. And protect the people in my view also from Economic War or Undervalued currencies etc...
We the people have the right to life, liberty and the pursuit of happiness..
I for one do not know any person who is happy or free if he or she cannot have a decent job.
And if Jobs are exported then we basically starve our children from the opportunities we had . Shameful and short sided..
Given the fact that corporations are profit driven Government has to use its levers to "incentive's in-sourcing".
Thomas Jefferson, The Declaration of Independence, 1776
We hold these truths to be self-evident, that
1. all men are created equal, that
2. they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. That
3. to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, That
4. whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.
The government must use the Taxation to incentivize creation and production of goods.
If it is made outside the country is should have a heavy Tax on it so that the manufactures will make it in country. Germany is a great example and so is Japan and Korea.
It is a fact that unless we bring back the Jobs we so carelessly "exported" in the last 15 years we are going to be domed both as a democracy and also as a society...
Funny thing is, I very much see the economy as a dynamically self-regulating system, with feedback. But some of your solutions sound more like you're forcing the system into an unstable state, so that it will spring back to equilibrium as soon as it's given half a chance.
We will not go back to an isolated economy anytime soon. That's way in the past.
I agree with your education ideas, but I don't agree that we can pretend that a global economy can be artificially taxed out of existence, without dire consequences to our own economy.
If we want manufacturing jobs back, (a) they won't be the same low-skilled jobs they were in the past, and (b) it has to make economic sense to bring them back. Meaning, the overall net cost has to be lower than shipping them elsewhere. I think this is doable, but I don't believe it can be forced with short-sighted artifial techniques like onerous taxes.