> 4) In 2008, 1.2 billion cellphones were sold
> worldwide. How many of them were manufactured
> inside the United States? Zero.

Cell phones are a great example.  Many people can go to a provider and sign
up for a service plan and walk out the door with a free phone.  The reason
for this is that they're fairly inexpensive and the cost (low as it is) is
captured in the price of the contract over the long term.  If that same
phone had been manufactured in the United States it would have cost a lot
more.  For the cellular providers, offering a free phone (or a reduced-price
phone, as is the case with an iPhone from AT&T) with the package is great
from a marketing standpoint.  No cellular provider is going to take a stand
on where the phone is manufactured and only sell/include US-produced phones
because the other providers would eat their lunch.  This same story plays
out over tens of thousands of products.  Not only are many products cheaper
to manufacture overseas, but the quality is as good as or better than what
we can produce here.

As consumers, our society wants lots of goods at the lowest possible prices
(hence, Wal-Mart).  At the same time we want high-paying jobs with great
benefits, health care, etc.  As large-scale, quality, manufacturing has
become possible in places like China, it makes perfect sense from an
economic standpoint to have our goods manufactured there instead of here.

So what about all of those people who were once paid to do manufacturing in
the United States?  They need to move on and find work in other fields.
They need to be retrained and get educated in other fields with more
promising futures.

I agree, the US is losing out on manufacturing.  Instead of a rallying cry
for "buy American" we need a rallying cry for "go back to school."
Unfortunately many educational institutions are also in it for the money
rather than the betterment of the country, so not only can people not afford
to go to school, but they are crippled with debt if they decide to push
through and finance their education.

In my opinion, education is where the next great revolution needs to take
place.  It needs to be cheaper and more widely available.  That is the only
way we will be able to continue to compete at all in our emerging global
economy.

As an aside, as the quality of life in places like China improves and they
develop a form of "middle class" in their own culture, those people will
also begin to want more things and will demand higher wages which will cause
prices to increase, and there may come a time when the cost of manufacturing
plus shipping reaches a point where it would be cheaper to simply
manufacture locally again, but I do not think that will happen any time
soon, so educating the upcoming workforce to not rely on manufacturing will
be key, in my opinion.


-Justin



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