Close Menu
    What's Hot

    Does Canada Have UBI? What to Know About Its Basic Income Programs.

    June 21, 2025

    I Took My Husband’s Last Name; Now I’m Jennifer Lopez

    June 21, 2025

    Mistral AI CEO Says AI’s Biggest Threat Is People Getting Lazy

    June 21, 2025
    Facebook X (Twitter) Instagram
    Hot Paths
    • Home
    • News
    • Politics
    • Money
    • Personal Finance
    • Business
    • Economy
    • Investing
    • Markets
      • Stocks
      • Futures & Commodities
      • Crypto
      • Forex
    • Technology
    Facebook X (Twitter) Instagram
    Hot Paths
    Home»Economy»The Lure of Yesteryear Manufacturing
    Economy

    The Lure of Yesteryear Manufacturing

    Press RoomBy Press RoomMay 8, 2025No Comments4 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email


    An eight-second Wall Street Journal video clip illustrates the old-time, labor-intensive manufacturing that some, including the two last US presidents, want to bring back to America by using state coercion and threats (“Trump’s Tariffs Are Lifting Some U.S. Manufacturers,” May 4, 2025). The featured worker in the video clip seems to be endlessly repeating two mechanical operations on a machine. The employer is an Ohio manufacturer looking to boost its production—and its prices, which will be bid up—following the 145% tax that Donald Trump imposed on Chinese imports.

    The repetitive and mindless job shown on the clip is typical of old-time, labor-intensive, low-tech, “dirty,” often dangerous manufacturing, which has been mostly eliminated from the United States and other rich countries by two factors: automation and, for the rest, reliance on the comparative advantage of poorer countries at a lower stage of development and labor productivity. Bringing old-time manufacturing back to America, besides diverting resources from industries where labor is more productive and better paid, would also bring back repetitive jobs. Otherwise, it would not increase employment as the labor market is already at, or close to, full employment. The very process of bringing old manufacturing to the US, notably with tariffs and other Colbertist interventions, could further compromise full employment, creating another problem instead of solving a non-existent one.

    About mindless manufacturing jobs, which were once common in now-rich countries, Adam Smith wrote in The Wealth of Nations (Book 5, Chapter 1):

    The man whose whole life is spent in performing a few simple operations, of which the effects are perhaps always the same, or very nearly the same, has no occasion to exert his understanding or to exercise his invention in finding out expedients for removing difficulties which never occur. He naturally loses, therefore, the habit of such exertion, and generally becomes as stupid and ignorant as it is possible for a human creature to become. The torpor of his mind renders him not only incapable of relishing or bearing a part in any rational conversation, but of conceiving any generous, noble, or tender sentiment, and consequently of forming any just judgment concerning many even of the ordinary duties of private life. …

    But in every improved and civilized society this is the state into which the labouring poor, that is, the great body of the people, must necessarily fall, unless government takes some pains to prevent it.

    Revealed preferences suggest that repetitive manufacturing jobs are still preferable to pre-industrial life or scavenging dumps in underdeveloped countries. In the 19th century, most workers outside agriculture, construction, and the resource industries were employed in mindless manufacturing. Of course, these workers are as worthy of our respect as the consumers who patronize more efficient producers.

    Adam Smith raised an important question, but he could not imagine that, thanks to the fast economic growth that was to become typical of free societies, few workers would remain stuck in mindless manufacturing. In a modern developed economy, most jobs require some knowledge, thinking, and initiative. In manufacturing, which accounts for less than 10% of employment in America (like in most rich countries), the most repetitive tasks are done by machines. We in the rich world should be happy to be there. And our governments should not fall into economically illiterate and morally reprehensible attempts to prevent poorer countries from rising to our level of development. (Recall that in China, GDP per capita is less than one-third the American level; Vietnam is at 14%—according to data from the 2023 Maddison Project database.)

    The most important questions remain to be asked: Who should be producing which goods and services, how, and where? Economic theory and history strongly suggest two alternative answers. The first is to leave the decisions to some authority: the tribe, the council of elders, rationally ignorant voters,  politicians, the king, the strongman, or the planning bureau. The second way is to rely on consumer sovereignty, free enterprise, competition, and laissez-faire: letting each individual and each voluntary association (including corporations) decide what to do, and with whom to trade and at what terms.

    ******************************

    Mindless manufacturing



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Press Room

    Related Posts

    Saturday assorted links

    June 21, 2025

    Of Course We Should Privatize Some Federal Land (but probably won’t)

    June 21, 2025

    The anti-abundance agenda?

    June 21, 2025
    Leave A Reply Cancel Reply

    LATEST NEWS

    Does Canada Have UBI? What to Know About Its Basic Income Programs.

    June 21, 2025

    I Took My Husband’s Last Name; Now I’m Jennifer Lopez

    June 21, 2025

    Mistral AI CEO Says AI’s Biggest Threat Is People Getting Lazy

    June 21, 2025

    Sam Altman Predicts AI Will Lead to Jobs Looking ‘Sillier and Sillier’

    June 21, 2025
    POPULAR
    Business

    The Business of Formula One

    May 27, 2023
    Business

    Weddings and divorce: the scourge of investment returns

    May 27, 2023
    Business

    How F1 found a secret fuel to accelerate media rights growth

    May 27, 2023
    Advertisement
    Load WordPress Sites in as fast as 37ms!

    Archives

    • June 2025
    • May 2025
    • April 2025
    • March 2025
    • February 2025
    • January 2025
    • December 2024
    • November 2024
    • April 2024
    • March 2024
    • February 2024
    • January 2024
    • December 2023
    • November 2023
    • October 2023
    • September 2023
    • May 2023

    Categories

    • Business
    • Crypto
    • Economy
    • Forex
    • Futures & Commodities
    • Investing
    • Market Data
    • Money
    • News
    • Personal Finance
    • Politics
    • Stocks
    • Technology

    Your source for the serious news. This demo is crafted specifically to exhibit the use of the theme as a news site. Visit our main page for more demos.

    We're social. Connect with us:

    Facebook X (Twitter) Instagram Pinterest YouTube

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Buy Now
    © 2025 ThemeSphere. Designed by ThemeSphere.

    Type above and press Enter to search. Press Esc to cancel.