Krugman: Making Things in America

[ProSense]

Making Things in America

By PAUL KRUGMAN

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But that may be changing. Manufacturing is one of the bright spots of a generally disappointing recovery, and there are signs — preliminary, but hopeful, nonetheless — that a sustained comeback may be under way.

And there’s something else you should know: If right-wing critics of efforts to rescue the economy had gotten their way, this comeback wouldn’t be happening.

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Crucially, the manufacturing trade deficit seems to be coming down. At this point, it’s only about half as large as a share of G.D.P. as it was at the peak of the housing bubble, and further improvements are in the pipeline. The Boston Consulting Group, which is now predicting a U.S. “manufacturing renaissance,” points to major U.S. firms like Caterpillar that once shifted production abroad but are now moving it back. At the same time, companies from other countries, especially European firms, are moving production to America.

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Yet Mr. Obama was fiercely denounced for taking action. One Republican congressman declared the auto rescue part of the administration’s “war on capitalism.” Another insisted that when government gets involved in a company, “the disaster that follows is predictable.” Not so much, it turns out.

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[ProSense]

1. No comment? n/t

[Pholus]

4. I've seen a growth in really nifty automated manufacturing.

But plenty of unemployment among my machining friends. Hopefully this happens and it means actual jobs, but between the robots and the prison labor there is enough cheap labor to be had in the US. So this doesn't necessarily mean a return of the blue-collar manufacturing age where you can support a family with your labor.

Just visited a 50000 square foot factory floor in a building with just a dozen parking spots, mostly empty. REALLY impressive, fully robotic floor with one guy running a forklift to keep materials running in and one guy monitoring the robots. Really really impressive -- 2 guys running a factory that in the past would have required about a hundred. But how many of those factories will it take?

[Yavin4]

2. Mfg Is Coming Back Because the Dollar Is Dirt Cheap

and Chinese labor is getting more and more expensive.

[Peacetrain]

3. Its a very positive sign.10 years ago, people had given up on the

American manufacturing sector.. when in reality we are the largest manufacturer in the world