Website owner: James Miller
On job creation
The vast majority of people are very easily deceived by smooth talking preachers, glib politicians, etc. A main reason for this is that most people are just not much inclined towards thinking. They just believe whatever they are told. They are gullible, trusting, and they believe. They perhaps like the speaker and he seems very sure of himself and they wish to believe him. They believe because they want to believe. Perhaps they believe him because he belongs to their favored political party. So they vote for the politician who makes great-sounding, irresponsible promises.
A forceful person running for president of the United States promises he will bring jobs back to America from overseas. Well, jobs are important. Everyone would like an economy to provide an abundance of good jobs. So let us think about this. If the producer of some product that is very labor-intensive to produce can produce the item in some low-wage foreign country and ship it to the United States for 10 cents when it costs a domestic producer 50 cents to produce it, which business will thrive and which will fail? Unless a big import tax is enacted to even things out, the foreign producer will do well and the domestic producer will fail. No one will run a business if he can’t compete. You can’t get away from the basic facts of life. Competition is a fact of life.
A great many of our manufacturing jobs have gone overseas. I am not sure there is much we can do about it. I think there is more involved here than the cost of labor. I think another big reason manufacturing jobs have disappeared here is the environmental protection laws and regulations we have enacted in this country. It can cost a lot to safely dispose of toxic waste. You have to add the cost of disposing of the waste to the price of the product you are making. Our manufacturers can’t compete with a manufacturer in a foreign country that doesn’t have strong environmental protection laws — a country where you can get away with just discarding your waste in a river or into the air. So our manufacturers go overseas to make their products because of weak environmental protection laws there. So what is more important to you — a clean, healthy environment or manufacturing jobs?
You may be able to export manufacturing type jobs to a foreign country but there are many types of jobs that cannot be exported to another country. You cannot export the jobs of policeman, guard, teacher, nurse, doctor, department store worker, waiter, construction worker, remodeling contractor, cook, automobile salesman, physical trainer, mine worker, secretary, etc. to some other country. I believe that most jobs in our economy are service type jobs. As far as the quality of the jobs is concerned, the quality is probably about as good as the jobs of years ago. In the past there were a lot of jobs requiring hard manual labor, such as digging ditches and building roads. Now sophisticated heavy machinery does that kind of work in a developed economy such as ours (in poor countries such work may still be done by hand).
So, on the topic of job creation there are certain economic laws and facts of life that you can’t get around. In regard to manufacturing jobs, manufacturing techniques tend to become more and more sophisticated with time, employing things like robotics for example, and this means fewer and fewer employees are needed. Perhaps such jobs will come back to this country. But the number of employees needed will be much fewer.
21 Mar 2022
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