China didn’t “take” America’s manufacturing jobs, greedy American investors and executives sold America’s farm and ate the seed corn. Same in the UK.
Paul Waldman writes about woodworking tools, in A Trump Tariff Case Study: Can the U.S. Again Be the Power Tool King? at The New Republic.
My DeWalt 20-volt cordless drill/driver combo set is a beaut—powerful, smooth, comfortable in the hand, and not too expensive; I got it on sale for about a hundred bucks. It’s also a tribute to the wonders of the transnational supply chain, its components traversing the earth before they came together and found their way to my door. The drill and driver were made in Mexico, but their batteries were made in China, as were the battery charger and the handy tote bag that came with it. DeWalt, a brand familiar to every woodworker and DIY enthusiast, is a division of Stanley Black & Decker, a global conglomerate headquartered in Connecticut that owns brands including Craftsman, Porter-Cable, Bostitch, and many others.
He writes about how tools once made in the US by American companies are now made elsewhere by international companies, why this is, and what it might take to bring the factories back. He nails it, just spot-on: Manufacturing ecosystems, the cost of bringing it back, the jobs that were good in the past. “(M)any started as American companies but are now part of multinational corporations.” “Unfortunately, there are serious impediments to achieving reindustrialization on a large scale, and Trump’s policies are just about the worst way to go about it.” “We could rebuild those manufacturing ecosystems in the U.S., but we can’t just wish it into existence.” “In fact, this entire debate seems animated by a vision of a bygone time.”
Yep, he nails it. And, as we all know, it’s not just woodworking tools. It’s the same story for … everything.
Same In The UK
It’s the same here in the UK as well. Jaguar/Land Rover are now owned by an Indian company. Trains, water, Royal Mail, British Petroleum (BP), British Telecom (BT) and many other iconic, privatized “British” brands are no longer British-owned. All were sold off to international “investor” conglomerates so a few already-wealthy people could get even more wealthy, under an economic “ideology” (free markets) that was really just a cover story for selling the farm and eating the seed corn. And the public, struggling to get by, now flails around hoping Trump (and here, the Trumpy Reform party) will make good on his promise to “fix it.”
China Did Not “Take” Those Industries
“China” (generic term for “somewhere else”) didn’t “take” those industries. American and British “investors” and executives did that – literally sold out their countries – enabled by US/UK governments run by politicians elected with money that those executives and “investors” took out of their companies to buy the politicians, so they could personally obtain great wealth. They did it because they wanted cheap labor and a way around the pollution and worker safety rules that democracies insist on.
“China” understood what they were seeing and planned and executed a strategy to build their industrial base – as a country. They set up manufacturing zones and put in place everything needed — from local financing, to a modern power grid, to roads, to training centers, to supply chains, to places for workers to come live. Everything.
It was a “public/private partnership” between American executives and the Chinese government. Those exectives also took that ecosystem apart in the US, piece by piece, and it can’t easily be put back together. They sent away the “institutional memory” and “ecosystem” of supply chains and training centers… much like how the Trumpers are now doing the same to the US government itself.
Beyond Neoliberalism
Last week I stepped back into a past life and attended the opening of the “Beyond Neoliberalism” conference (https://beyond-neoliberalism.org/) because it was literally right down the street here in Cambridge UK. Oddly America-centric (and attended by lots of Americans I used to know) it began with a rousing 2.5 hour panel discussion (mostly Americans) on Industrial Policy under Biden. They said a lot of the things you nailed down in your piece.
Biden tried with his IRA to the extent the “system” would let him. Obama tried in tiny ways with his Smart Manufacturing “hub” concept, setting up labs – like a sensor testing lab in Lorain, Ohio around community colleges that would train people to work in the labs, etc. Same with a 3-D printing hub in Youngstown.
They tried. They failed. Now the US has Trump and likely soon the UK will have Farage.
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