Manufacturing jobs do not just appear or disappear, and the government is not the bad guy.
It is sad to hear Trump supporters to be interviewed about anything, but when they start talking about the lack of manufacturing jobs is when they really start looking like adults in diapers. They act like the government is supposed to force private manufacturers to build a factory and make something so that Joe Blow, with a high school degree, in Small Town USA can drive two miles to the local factory and earn $150,000.
1. Manufacturing jobs go overseas because consumers in the USA want to pay less for goods, and labor is cheaper in many places outside the United States, which makes the cost of manufacturing less, which makes the price of the product less.
2. USA, state, and local taxes have almost no impact on good manufacturing jobs. For example, the Sierra Nevada Corporation (a private version of early 1960’s NASA…before we had a successful launch) has its headquarters in Nevada, but all of their non-executive jobs are in Colorado. Colorado has higher taxes than Nevada, but Colorado also has a better, more skilled, higher educated workforce. Nevada is the headquarters only so the executives don’t have to pay taxes, but the jobs are in Colorado. If the issue was about taxes, the jobs would be in Nevada, not Colorado.
Job fairy or much ado about nothing?
3. There is no manufacturing jobs fairy. Manufacturing jobs REQUIRE someone who wants to buy the product. The NEED for a manufacturing job is determined by the consumer. You don’t build a factory, then hang out a sign saying you’re open for business. Manufacturing jobs are “secondary jobs” meaning that before a manufacturing job is created, a product that people want to buy must exist.
4. Most unskilled manufacturing jobs don’t pay well regardless of where the factory is located. CONSERVATION OF COMPENSATION: If anyone can do the work, the jobs go to the people who are willing to be paid the least amount of money. Whether the job is in the United States, or elsewhere, pay is driven by the supply of workers who can do the job.
5. Small towns rarely attract high paying manufacturing jobs. While some factories have moved to rural locations to reduce labor costs, it is rare, and factories still need enough potential workers to avoid a labor shortage, which would increase labor costs.
6. Good business REQUIRES government regulation. Government regulations protect the employee and the consumer. Many countries don’t have rules of against abuse of workers and don’t require manufacturers to abide ethical business practices, and result is always unethical business practices. Remember the Samsung Galaxy Note 7?
