By:
On Monday night, Dirty Jobs host Mike Rowe joined Tucker Carlson on Fox News to discuss Ford’s and Chrysler’s respective plans to reinvest in US manufacturing. Rowe, who is a proponent of technical and skilled jobs, told Carlson, “Get a skill that’s in demand, that’s really in demand, that can’t be outsourced. Plumbers, steamfitters, pipefitters, carpenters, mechanics, those men and women right now … can pretty much write their own ticket.” Rowe is right about skilled jobs. According to the Manhattan Institute, there are around a half-million US skilled jobs that aren’t being filled. Millennials are spending their time in the college safe spaces instead of doing the “dirty jobs” which can pay well.
However, when Rowe talked about making things in the US he got it wrong. “There’s just something … larger at work here,” Rowe said. “It has to do with our identity, it has to do with what it feels like when we’re actually making things as a country.” This “be American, buy American” attitude has been prevalent in the US for some time, however, making everything at home isn’t always the best route.
Take, for example, our cell phones. By outsourcing full production to China, our phones cost hundreds of dollars, not thousands. By having a low price, the phone companies attract more consumers and bring in more revenue. The jobs that would have been taken away by outsourcing are more than made up by the US based jobs in research and development, retail, sales, customer service, repairs, and any of the other jobs in the technology fields. After all, the biggest job creator in the past several decades has been the US service industry, not manufacturing. If we built our phones and tablets in Los Angeles, there would be far fewer highly skilled and creative jobs available in Silicon Valley.
By importing parts, components, and raw materials cheaply from abroad, companies are able to invest that savings in higher skilled and higher paying jobs here at home.
If an appliance company were to source screws, nuts, bolts, washers, and other parts from the United States, prices would rise, consumers would buy less, and there would be fewer jobs available from that company. By importing these parts from China, businesses can afford to hire more American workers at higher wages than those who would make the hardware.
However, making things in America can be a great thing when it’s not coerced. Channellock has been making pliers, wrenches, and other hand tools in Meadville, Pennsylvania for over 100 years. This decision was driven not by government intervention, but because consumers will pay more for Channellock’s quality tools than for their cheap Chinese counterparts. Channellock still manages to provide tools of the utmost quality for a relatively low price — less than $20 for most tools. They do so while providing a livelihood for their workers and the craftsmen who use them.
Making products in the US isn’t inherently bad or good. There are advantages and disadvantages to outsourcing. The best indicator of where to produce a product is clearly economic analysis done by the company itself. Depending on each situation, it may be advantageous to build in the US or it may not be. When the government tariffs imports, this disrupts price signals and discourages trade. If Ford, Chrysler, Carrier, and any other companies decide to stay in America because of expected deregulation and lower taxation, that’s good. If they do so because of expected protectionism, that’s bad.
This article was initially published on Mises.org.
To assume that jobs would be lost if more things where made in the U.S. is not proven. I purchased a pizza pan made in the USA for $4 at Walmart. The Farberware pizza pan made in China was $8 and it was a tin metal piece of crap. Sure maybe some things would cost a little more, but incomes would be up for the workers in manufacturing and many people will pay more for made in the USA. It is ok for China and other countries to use protectionism, but not the USA, give me a break. I would pay $100 more for a cell phone made in the USA if the quality was as good as any others, so I do not think making the phones in the USA will make them cost thousands of dollars, way to spin it.
I agree. This entire opinion piece is rubbish,. There are many variables that are in place effecting why a company moves overseas that that company has no control over. This is not the first piece that Andrew wrote which is anchored in total bull shit.
Since when did Trump say where a business can and can’t make their products? Trump is just leveling the playing field for American workers.
Rowe’s advice to learn the skills for trades that can not be outsourced is spot on.
Many of these services are being done by cheaper labor today, mainly illegal aliens and those who are here legally.
Why?
Because the youth of today are being told that by sitting on their collective butts they can get higher paying jobs in tech industry. Really? Not everyone can attend college.
I see this daily.
The youth today have a hard time learning the skills of carpentry, electrical, plumbing, masonary, because of the mndset of “higher education solves all”.
I have tried to teach some the basic skills of carpentry, painting to get them to understand self suffecency. Some get it, while others are completely lost in the process; but their grasp of physical labor and the ability to function by their hands and minds at the same time is abysmal. Much repetition is needed.
AS is the old concept of teching these skills when they are young by their fathers; oh, yeah, that brings up another subject.