Thursday, 27 June 2019

Can manufacturing jobs come back to the US?


There have been many political figures in the US campaigning for being the next US president, especially on the Democratic Party's side. The Democratic Party just had its first round debate on the 26th of June and the candidates spoke out about their ruling plans for the US if they get elected. After watching the debate, I think that the Democratic candidates agree on many issues and only disagree on some minor details. The main focus of the Democratic Party is to narrow the wealth gap in the society. Many candidates propose higher taxes on corporation and super wealthy individuals and provide more social care including higher minimum wages and better health care for more people. Moreover, some candidates propose creating more jobs and bringing in back manufacturing jobs to the US. In the previous presidential candidate, the current president, Donald Trump, also promised to bring back manufacturing jobs. However, how likely are these manufacturing jobs coming back to the US?
I completely agree with the Democratic candidate, Elizabeth Warrant, that corporations are only loyal to profits. Therefore, if they can make more money by keeping manufacturing jobs in the US, they will do so. Then the key question is whether companies can make more money if they bring back manufacturing jobs to the US or not. I do not think that any company can make more money from bring back manufacturing jobs under most circumstances. There are only two circumstances which I think can bring back the manufacturing jobs to the US. The first circumstance is to set up tariffs to make the prices of importing from overseas and manufacturing in the US equally expensive. The other circumstance is to give subsidies to companies and make manufacturing in the US more attractive. Both options are bad. Even if we ignore the potential political tension caused by these acts, these two methods are not going to produce an economic efficiency in the US economy. The US economy has much greater advantages in other fields, especially in the cutting edge technology; focusing too much on the basic manufacturing sector can weaken the investment in the field which the US is much better at or needs much more.
Overall, bringing back the manufacturing jobs to the US makes much more political sense than economic sense.

No comments:

Post a Comment