How in near future north America will be able to compete with India and China in manufacturing sector?

Question

On one side they want Globalisation import cheap goods and on the other side they are destroying the manufacturing base by imposing bussiness taxes at all levels of government.For how long do you think it could go on like this.why there should be any property tax on industrial buildings i think it is extra burden on industry which employs majority of working people.I want your wise comments.

Answer 1

The only way we can compete is simple: choose the industries to compete in, and make superior goods.

Right now, things don't look so good...

Answer 2

Great Question


The only way are if certain events take place.

1. Wages and cost of manufacturing must raise in these countries to where they are at the level of the US. Then it will not matter where something is manufactured. I am not sure how feasible this is in either country.

Both are more command and control than free market and the governments may be artificially deflating wages. You are talking about the #1 and #2 most populace nations on earth. The labor supply is too plentiful.

2. Wages and manufacturing costs must be reduced significantly in this country. Actually the main costs to business is not the wage itself, but the benefits (healthcare e.g.,). If US workers could be employed without entitlements, we might reestablish a competitive advantage. I doubt we have the ability to do this, but its why Wal-mart is profitable, cheap labor.

3. People need to stop buying commodities. But people like cheap junk...especially in the US. This is not happening.

I know it won't happen, but I think if local communities would learn to reestablish being self sufficient, and we not depend on global corporations for our needs, we would also lose the cost of overhead that also makes us noncompetitive.

IMHO

Answer 3

Manufacturing has been dwindling in the U.S. for quite some time. When a company can produce their producs and import them cheaper than they can make them here, they choose to do just that.

It's a bit of a dilemma: We do get goods from other countries that are of high quality and are cheaper. The humanists scream about "sweatshop" labor in these countries. If they were to prevail and the laborers were paid wages equivalent to those in the U.S. (not their real goal which is to force the manufacturing jobs back to the U.S.) would these same people be screaming because their new, 86 inch flatscreen HDTV cost half as much as their house?

If we were to force manufacturers to move their factories back to the U.S. the ordinary work-a-day citizen wouldn't be able to afford many of the items and accessories we now have in our life. From computers, to HDTV, to "logo" clothing, to a new pair of Nikes, to furniture, to tires for our automobiles....any of those, because of the costs of labor, would have to be considered a major purchase.

Economy and working wages are a delicate dance. You have to be very careful when you try to tinker with it, lest you cause an upheaval in the ability of "middle class" people to afford what is being produced.

We do lead nearly all other countries in the Service industry. From janitorial services to personal assistants for executives; we lead the world.

Answer 4

Impose tariffs on countries that do not have the same high level of environmental protection and workers rights as we have in the USA.

Capitalism must be managed to be a success as left unfettered it will drag our average earnings down to thirld world standards.

Answer 5

the wealthy are growing,, middle class are shrinking,, the poor are mostly working,,, the illegal immigration issue is a huge strain on the taxpayers,, but what does your government care,,,

Answer 6

we need the middle class to increase