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Who’s Really Ready For A De-Globalized World?
Virtue signaling. I hear it a lot from some corners of Wall Street these days vis-à-vis Donald Trum
Here’s the irony. Even of you reshore, it is not going to bring that many jobs back. It will be mostly automated. Give Germany a look. They are great manufacturers. But their economy has to rebalanced towards services. Not enough blue color labor and not competitive costs. The competition from lower priced markets is too great. Talking about increasing manufacturing to increase jobs is performance. The money would be better spent on a better safety net and training for services, health care, and other fields where demand will continue to increase and to shift the tax burden away from the middle and lower classes.
The movie was Sweet Home Alabama, her fiance’s name was Jake, and it was the early 2000s.
Thanks for the two articles. Most people have no understanding of the tension you describe well.
Somethin’s gotta give and a lot has already given way. No idea what’s gonna turn up when the levee breaks. One giant cluster you know what spinning out of control.
How do de-globalization and reshoring to the U.S. impact inflation, both domestically and globally, in the short and long term?
If the goal of re-shoring is actually to be met we will find we don’t have enough trained workers to replace the skilled workers overseas and inflation must rise as costs rise. They will have to rise and profits will still fall. Nothing the Fed or Trump can do about that. No more 75$ cashmere sweaters for Christmas any more.
I think the real reason for on/re-shoring is to remind us all–too painfully–why we thought it was such a good idea to off-shore everything in the first place. Let’s face it, good paying 1970’s style union jobs–complete with healthcare and pensions–are not coming back due to tariffs. Anyone who re-shores their manufacturing is likely to do so in a “right to work” state. The average non-union manufacturing job in the U.S. pays about $25 an hour. That’s about $52,000 a year for often demanding, repetitive work. In the 1980’s, a non-seniority, union auto worker in Dayton Ohio made about $32 an hour with benefits, including a pension. By comparison, as of 2024, the average manufacturing job in China pays about $14,000 a year (U.S.). I am sorry, but there is no easy fix.