Now is that time of year when thousands of high school and college students across the world, from Fairfax to Frankfurt, will be taking their very first economics course. Perhaps it will be a basic, high school introductory economics’ course, or perhaps an even more challenging AP or IB economics’ course. Or perhaps you are a freshman or sophomore in college taking an introductory macroeconomics or microeconomics course.
Whatever your situation, you will soon read that all introductory economic text book authors make the point, usually in their respective text’s first chapter, that a primary benefit of studying economics is that it aims to transform one into a more effective and influential citizen by enabling one to better understand and conclude on the economic positions and promises of those running for public office. The underlying logic is that a citizen or voter that is well-versed in basic economic principles will be a smarter citizen and more likely to vote for the political candidate or referendum that will deliver the greatest economic gain for the citizens of the locality, state, and/or nation. In fact, this “economics for citizenship” reason is why a growing number of states now require completion of a basic economics course as a requirement for high school graduation.
In my classroom, I informally call the study of economics “the 180-degree science” because as the student studies this social science for the very first time they often develop conclusions that are precisely the opposite (hence, the “180 degrees”) of what they had originally believed before taking their first economics course.
For example, here are two “180 degree moments”, which are applicable to the United States’ economy, that you may well learn in your first year economics’ course:
1. Pre-Econ Course or Misinformed View: “We don’t make anything anymore in America. America’s manufacturing prowess is in a state of constant decline. It seems like almost everything bought and used in the U.S. is made in China”
Post-Econ Course and 180 Degree View: The dollar value of manufactured goods in the United States, restated for price level changes so the comparison is accurate, is up over 50% for the last 15 years and has doubled since 1990! Yes, it is true that the U.S. has lost several million jobs in manufacturing over that same time period, but that is primarily due to rising manufacturing productivity (think machines and technology replacing humans), where the U.S. can now produce more higher value manufactured products than ever before freeing up those displaced manufacturing workers who now have found or must find employment in other growth industries such as technology or health care.
Moreover, believe it or not the US manufacturers more than both Japan and Germany combined, although China passed the US and moved into the number 1 spot in 2011 as it employs more than 5x that of the US in the manufacturing sector. Although manufacturing output is at its highest level ever in the US and will continue to rise into the foreseeable future, it will also continue to decline as a percentage of overall economic activity as the United States is growing faster in services than in manufacturing.
Whatever your situation, you will soon read that all introductory economic text book authors make the point, usually in their respective text’s first chapter, that a primary benefit of studying economics is that it aims to transform one into a more effective and influential citizen by enabling one to better understand and conclude on the economic positions and promises of those running for public office. The underlying logic is that a citizen or voter that is well-versed in basic economic principles will be a smarter citizen and more likely to vote for the political candidate or referendum that will deliver the greatest economic gain for the citizens of the locality, state, and/or nation. In fact, this “economics for citizenship” reason is why a growing number of states now require completion of a basic economics course as a requirement for high school graduation.
In my classroom, I informally call the study of economics “the 180-degree science” because as the student studies this social science for the very first time they often develop conclusions that are precisely the opposite (hence, the “180 degrees”) of what they had originally believed before taking their first economics course.
For example, here are two “180 degree moments”, which are applicable to the United States’ economy, that you may well learn in your first year economics’ course:
1. Pre-Econ Course or Misinformed View: “We don’t make anything anymore in America. America’s manufacturing prowess is in a state of constant decline. It seems like almost everything bought and used in the U.S. is made in China”
Post-Econ Course and 180 Degree View: The dollar value of manufactured goods in the United States, restated for price level changes so the comparison is accurate, is up over 50% for the last 15 years and has doubled since 1990! Yes, it is true that the U.S. has lost several million jobs in manufacturing over that same time period, but that is primarily due to rising manufacturing productivity (think machines and technology replacing humans), where the U.S. can now produce more higher value manufactured products than ever before freeing up those displaced manufacturing workers who now have found or must find employment in other growth industries such as technology or health care.
Moreover, believe it or not the US manufacturers more than both Japan and Germany combined, although China passed the US and moved into the number 1 spot in 2011 as it employs more than 5x that of the US in the manufacturing sector. Although manufacturing output is at its highest level ever in the US and will continue to rise into the foreseeable future, it will also continue to decline as a percentage of overall economic activity as the United States is growing faster in services than in manufacturing.
2. Pre-Econ Course or Misinformed View: “It is patriotic for U.S. citizens to “buy American” so that we can help our own economy. When we buy foreign products (i.e., imports), in lieu of American products, we hurt our U.S. economy as we lose American jobs and incomes".
Post-Econ Course and 180 Degree View: The U.S. will benefit the most economically if Americans buy what they consider to be the very best product, in terms of price and quality, regardless of whether it is a foreign-produced product or an American-produced product. One of the greatest “ah-ha” moments in all of economics is when an economics’ student or citizen learns for the first time that every time a U.S. buyer purchases a foreign product (i.e., an “import”) that those same U.S. dollars spent on the foreign product circle back to a U.S.- based company, not a foreign company. Yes, I am telling you that when you (or Wal-Mart, for example) buy Chinese shirts, those same U.S. dollars spent on the Chinese shirts return into the bank accounts of, say, Apple, Microsoft, IBM, or Garmin as the Chinese must use those same U.S. dollars to buy U.S. products!
Let me try to explain this concept in more detail so that I may actually be able to convince you of this amazing “180 degree” revelation. I always say the more accurate slogan should be “Buying American is Un-American” if it is not the best product as it will create a weaker America and harm our economy!
Let’s say that the United States (we’ll say Wal-Mart) decides to buy some shirts costing $400 from a Chinese shirt manufacturer, in lieu of buying similar shirts from, say, a shirt manufacturer in Elon, North Carolina (USA). The first key point is that when Wal-Mart buys the shirts from China for $400, Wal-Mart can only pay China with US dollars. Why? Because Wal-Mart has only US dollars! Wal-Mart has no Chinese currency (Yuan). Wal-Mart literally drains its bank account of US dollars and pays them to the Chinese shirt vendor, who immediately exchanges the $400 with a Chinese foreign currency trader for the equivalent amount of Chinese Yuan! The Chinese foreign currency trader only purchased the $400 from the Chinese shirt vendor because he knows that he will immediately be able to sell the $400 to a different Chinese business or consumer who wants to buy the amazing products from the U.S. Said another way, the reason the $400 returns to the U.S. is that no one in China can spend any of the $400 in its own economy since only the Yuan is accepted as a medium of exchange in China! China is thus forced to either throw the U.S. currency away (not advised!), or spend the money back to the USA (advised!). Yes, the economic “punch line” is that all spending by the domestic nation on foreign products (imports), in turn, are spent immediately back to the domestic nation increasing or maintaining that domestic nation’s employment, income, and standard of living.
And, yes, let’s not forget about that Elon, North Carolina shirt maker that did not, in this example, get the original $400 from Wal-Mart. Any good economy promotes competition and, in this example, that North Carolina shirt manufacturer must “raise their game” by figuring out how to produce a better shirt in terms of either quality and/or price, and hopefully get the next shirt contract from Wal-Mart! If they are unable to compete, well, that North Carolina firm may just have to close down. But remember the key point is that the $400 spent for the Chinese shirts went to another more deserving U.S. company, in lieu of the North Carolina shirt manufacturer. If Wal-Mart would have “bought American” by buying from the Elon shirt manufacturer, even though the Chinese shirts were preferable, Wal-Mart would have prevented the more effective and deserving U.S. business from getting those same U.S. dollars by giving them to the less efficient North Carolina manufacturer. In short, Wal-Mart would have contributed to American inefficiency and mediocrity by subsidizing the less efficient and removing the incentive for them to perform better, thus hurting our country's ability to strive for producing the very best products! And that is un-American!
Now, you may be thinking the following if you have a little economics’ background: “But the US has a growing trade deficit with China, so the Chinese may not immediately buy those products from a U.S. economy immediately. And, you are correct, but that is also not a problem for either the United States or China. What China is really doing when they don't immediately buy U.S. products with the U.S. dollars paid to them for their products is to temporarily save or invest those same U.S. dollars in the U.S. Said another way, China is not currently buying as many US products as the US is buying Chinese products and, of course, we call that situation the US trade deficit which immediately seems to speak “problem”. But it is really not as big a problem as most people think! China is still spending their US dollars back into the US economy, but in different ways. China is saving and investing some of those US dollars directly into the United States economy by building plants in America, buying US stock to fund American companies’ expansions, and temporarily saving some of their dollars, for future US purchases, by buying US bonds to help the US government pay for other US government initiatives necessitating borrowing. Eventually, China will sell these US bonds for US dollars and be forced to use those same U.S. dollars to buy US products or build more plants in America, each of which will employ more Americans!
Yes, it is an economic principle that if U.S. citizens “buy American” driven solely by patriotism (and not because they think the product is superior) the American economy actually becomes weaker as the U.S. dollars spent out of patriotism on that American company are, therefore, unintentionally withheld from another more efficient and deserving American company.
In summary, when citizens of any country in the world buy the product that is best for them based on a combination of quality and price, they will be taking the most patriotic action possible to help their own country they love so much! If a domestic citizen sees the foreign product as a better alternative to the domestic product, buy it! Your money spent will immediately find its way back through the “trade loop” to another business within your country!
Of course, this is why all economists from around the world know that international trade, and not protectionism, helps a country’s standard of living and promotes efficiency and rising standard of livings!
Well enough for now. I could go on and on with more 180 degree moments relating to areas such as standard of living, unemployment, the minimum wage, gasoline taxes, and many others. But we’ll discuss some of those in class and I will cover others through this blog site. For now, I just really hope you look forward to and work hard in your economic course so that, you too, will become a more informed and influential citizen as you begin to see your nation’s economy, and our global economy, in a whole new light!
Discussion Questions:
1. What is the primary reason that employment in the U.S. manufacturing sector decreases over time, yet manufacturing output continues to rise? Why do most Americans believe that manufacturing is "in a state of decline" even though we are producing more than ever before?
2. Would you be surprised to know that manufacturing employment is also decreasing at the same rate in Germany and Japan as it is in the United States? Why do you think it is? Where do these displaced workers need to find jobs if it is not in manufacturing?
2. Would you be surprised to know that manufacturing employment is also decreasing at the same rate in Germany and Japan as it is in the United States? Why do you think it is? Where do these displaced workers need to find jobs if it is not in manufacturing?
3. What happens to the U.S. dollars that we send to Saudi Arabia to buy their oil? Can the Arabs use our U.S. dollars in their own economy? What are two logical choices that Saudi Arabia can do with the U.S. dollars that we send them for their oil?
4. When the U.S. buys a foreign product, how does an individual or business in that same foreign country get access to the U.S. dollars we just sent them?
5. Why do so many Americans think that "Buying American" is best for our country? What would happen to the U.S. standard of living if we could only buy American via a new law? Support your answer by describing how American firms might behave or progress because of this new law.
4. When the U.S. buys a foreign product, how does an individual or business in that same foreign country get access to the U.S. dollars we just sent them?
5. Why do so many Americans think that "Buying American" is best for our country? What would happen to the U.S. standard of living if we could only buy American via a new law? Support your answer by describing how American firms might behave or progress because of this new law.
1. The primary reason that employment in the manufacturing sector decreases over time but output continues to rise is the invention of new and better technology. The technology enables companies to downsize their labor force while still increasing their manufacturing outputs.
ReplyDelete2. It is not surprising that the manufacturing employment is also decreasing at the same rate in other countries because in this day and age, technology is continually being reinvented and improved. As the technology displaces more and more workers, these displaced laborers should find jobs in growth industries such as technology or healthcare.
3. Any U.S. dollars used to buy foreign products will eventually cycle back into the U.S. economy. Arabs or any other foreigners cannot use U.S. dollars in their own economies. The logical choices that foreigners have is to do nothing with the money, essentially throwing it away, or to use that same money to buy goods from the U.S. economy. So by buying foreign products, we as Americans are stimulating our own economy.
4. The business who receives our U.S. dollars must exchange the U.S. dollars at a foreign currency trader to receive the equivalent amount in their own currency in order to access the money.
5. It is a seemingly logical thought that buying American is inherently helping America because it is stimulating our economy. However in reality if we buy American based solely on the fact that it is American, the economy would suffer because we would not be endorsing the best product. International trade inspires competition and innovation in American companies who need to up their game if they want to stay in the running with foreign products. If there were to be a law that required only buying American, the standard of living would most likely drop because American companies would no longer be challenged to make better products. The companies could become complacent and lazy causing their products value to be less desirable and valued.
1. The primary reason that employment in the manufacturing sector decreases over time but output continues to rise is the invention of new and better technology. The technology enables companies to downsize their labor force while still increasing their manufacturing outputs.
ReplyDelete2. It is not surprising that the manufacturing employment is also decreasing at the same rate in other countries because in this day and age, technology is continually being reinvented and improved. As the technology displaces more and more workers, these displaced laborers should find jobs in growth industries such as technology or healthcare.
3. Any U.S. dollars used to buy foreign products will eventually cycle back into the U.S. economy. Arabs or any other foreigners cannot use U.S. dollars in their own economies. The logical choices that foreigners have is to do nothing with the money, essentially throwing it away, or to use that same money to buy goods from the U.S. economy. So by buying foreign products, we as Americans are stimulating our own economy.
4. The business who receives our U.S. dollars must exchange the U.S. dollars at a foreign currency trader to receive the equivalent amount in their own currency in order to access the money.
5. It is a seemingly logical thought that buying American is inherently helping America because it is stimulating our economy. However in reality if we buy American based solely on the fact that it is American, the economy would suffer because we would not be endorsing the best product. International trade inspires competition and innovation in American companies who need to up their game if they want to stay in the running with foreign products. If there were to be a law that required only buying American, the standard of living would most likely drop because American companies would no longer be challenged to make better products. The companies could become complacent and lazy causing their products value to be less desirable and valued.
1. The increase of manufacturing output is a result of new technology that enables faster machines, which result in a higher amount of products made. As a result, the people who worked in those factories lose their jobs because the machines do their job quicker and easier, causing the decrease in the manufacturing sector. Americans believe that manufacturing is at a decline because the combination of job loss in that category and our tendency to buy foreign goods.
ReplyDelete2. German and Japanese manufacturing employees are probably losing their jobs due to the same reason American employees are losing theirs: an advance in technology. These machines, which can do the job quicker and more consistently, are taking over the factory jobs. As a result the workers who lost their jobs to these machines are found either running the machines or in new fields that are opening up in their countries like healthcare and technology are for the U.S.
3. U.S. dollars that are sent to Saudi Arabia in exchange for oil have the same fate that they would in China. Saudi Arabians cannot use U.S. currency in their economy and as a result they could either bring those dollars to their national bank to exchange for their own currency or they could make a trip to the U.S. and use the money directly in U.S. stores. Both options benefit the U.S. economy.
4. Foreign businesses and manufacturers often make business deals with bigger businesses such as Wal-Mart, and receive their money directly from these companies. After they receive their agreed amount of money they bring them to a foreign-currency trader, who exchanges the useless American dollars for their own currency.
5. People believe that when we are buying products that are made in America, we are helping out our economy by giving that money to an American manufacturer instead of a random foreign manufacturer. If a law was passed stating we could only buy American, the standard of living would go down. American manufacturers wouldn’t work hard to make higher quality products because they wouldn’t have any competition. Even if the quality of their products did not meet the standards of their consumers, they wouldn’t have any pressure to improve because the consumer doesn’t have any other choice but to buy from them.
1. The primary reason that employment in the U.S. manufacturing sector decreases over time, yet manufacturing output continues to rise due to the fact there has been a great deal of advancement in technology throughout the U.S. Most Americans believe that manufacturing is “in a state of decline” even though we are producing more than ever before because the rising number of people without jobs and the fact America does not produce as many of the things the everyday household uses. Due to this, America has a tendency to buy foreign goods.
ReplyDelete2. No, it is not surprising to know that manufacturing employment is also decreasing at the same rate in Germany and Japan as it is in the United States. Like the United States, Germany and Japan have a noticeable advancement in technology. Instead of going into manufacturing, the workers should go into medical fields and/or technology companies.
3. When the U.S. dollars are sent to Saudi Arabia to buy their oil, the money will soon circulate back to the United States. This is due to the fact they are unable to use the U.S. dollar in their country. The only logical choices Saudi Arabia can do with the U.S. dollars are either throw it away or use that money to buy American manufactured goods.
4. When the United States buys a foreign product, the individual or business takes it to their local foreign currency trader and gets the amount due to them in their own currency.
5. Many people think that “Buying American” is best for our country because they think it is stimulating our economy rather than foreign ones. If we were not to buy from foreign companies then essentially it would hurt ours. Americans may not be buying “the best product” in reality. There wouldn’t necessarily be enough competition throughout the world to improve our products. For example, the American cars—Ford and GM—used to be some of the worst cars one could buy. However, with the advancement of the German cars, America needed to step up its game. Therefore, today America has some very enticing and advanced cars in the economy.
1. Employment in the U.S. manufacturing sector decreases over time because better technology is being developed to replace the workers. In this way, manufacturing outputs rise. Most Americans believe that manufacturing is “in a state of decline” because they see “Made in China” on more and more products. In contrast, the U.S. is actually producing more than before.
ReplyDelete2. I’m not surprised at all to hear that Germany and Japan are experiencing
similar decreases in manufacturing employment. Like the U.S., both of these
countries are trying to get better to keep up with competition, and that includes making better technology. These newly displaced workers will most likely need to find jobs in other sectors of the economy that are growing, like healthcare and technology.
3. When the U.S. buys oil from Saudi Arabia, Saudi Arabia uses the U.S. dollars it was given to buy American products. Since Saudi Arabia doesn’t use the U.S. dollar as its currency, it can either buy goods and services from America with the dollars it was given or invest the money in a U.S. company.
4. When a foreign business or individual is paid with U.S. dollars, their logical path of action would be to exchange the dollars through a bank for their own currency. In this way, the individual gets paid with useful cash, while another individual or business from the same country can obtain these dollars and buy a U.S. product.
5. A lot of Americans think that “Buying American” is better for the country because it keeps the money within our own economy and so we benefit directly. In contrast, if a law was passed to restrict Americans to only buying American products, our standard of living would go down. By doing this, American businesses would have very limited competition and they would most likely not be as motivated to get better. With international trade, companies from all over the world are constantly having to progress in their field because newer and better products are always being developed.
1.Manufacturing output is continuing to rise because of the great strides made in the technological world. Newer and smarter technology is coming out every day, making the work place extremely “hands off” in the fact that workers don’t need to make everything by hand. This sadly does lead to unemployment but these now jobless workers are available to work in more beneficial jobs. Americans believe that it is in decline because they see “made in china” stickers on all products. Since China is making out clothes, toys and shoes, we can focus on bigger, more revenue producing equipment and services.
ReplyDelete2.The people in Germany and Japan are also mostly likely losing their jobs because of advanced technology. This smart technology frees up these workers who can find new homes in field where their product is services (not goods) such a health care, business or banking.
3.All U.S. money eventually finds its way back home into the American economy. The Arab’s can’t use our currency in their country because no vendor accepts it. They either do nothing with that money or chose to buy products made in the USA.
4. U.S. money is useless to foreign countries. In order to receive revenue, the foreign business must make a currency exchange at their local bank. Their only other option is to buy American.
5. Americans like to buy in-house because they think they are boosting their home team’s economy. This may not turn out to be beneficial. If the buyer choses an American product over a better-made foreign product, they are endorsing this poorly made good. The standard of living would go down substantially if we were only allowed to buy American because often, American is not best. A healthy economy thrives on competition. If the US business was continually getting buyers, they would not raise the quality of their product at all.
1. The primary reason that employment in the U.S. manufacturing sector decreases over time, yet manufacturing output continues to rise is because the manufacturing sector is becoming increasingly automated, workers are being replaced by machines. Most Americans believe that manufacturing is “in a state of decline” because the see the massive amount of people losing their jobs in the manufacturing field and they also see that many things that we use are made in China.
ReplyDelete2. I would not be surprised to know that manufacturing employment is also decreasing in Germany and Japan because they also are becoming for technologically advanced in their manufacturing process. These workers that are displaced need to find jobs in industries that are growing such as technology, and healthcare.
3. When we buy oil in Saudi Arabia we buy it with American dollars and these can not be used in the Arab economy. These U.S. dollars are converted through a bank into Arab currency. Two logical choices that Saudi Arabia can do with the U.S. dollar is to save it and do nothing with it or to buy U.S. products with that money.
4. An individual or business in a foreign country can get access to the U.S. dollars we just sent them by going to a foreign currency trader and trading their countries money in for U.S. dollars.
5. Many Americans think that “Buying American” is best for our country because it supports the local businesses and keeps the money in our country. The U.S standard of living would decrease significantly if we could only buy American. If we could only buy American then companies would not be forced to produce the best product at the lowest price. There would not be any foreign competition to put pressure on companies to produce high-quality products at a reasonable price.
1. The reason why employment in the manufacturing business decreases over time but output continues to rise is the invention of new and better technology. The technology enables companies to decrease their labor force while increasing their manufacturing outputs at the same time.
ReplyDelete2.The people in Germany and Japan are likely losing their jobs because of steady advancements in technology. The new technology lets the workers find new jobs in field where their product is services such a health care, business or banking.
3. When the U.S. dollars are spent in Saudi Arabia to buy their oil, the money will soon come right back to the US. This is because they are unable to use the U.S. dollar in their country. The only choices Saudi Arabians have with the U.S. dollars are either throw it away or use that money to buy American products.
4. Foreign businesses often make deals with bigger businesses such as Target or Best Buy and receive their money directly from these companies. After they receive their money they bring them to a foreign-currency trader, who exchanges the US dollars for their own currency.
5. A lot of Americans think that “Buying American” is better for the country because it keeps the money within our own economy, thinking that we would benefit directly. In contrast, if a law was passed to restrict Americans to only buying American products, our standard of living would go down due to none of the businesses trying to improve their products. With international trade, companies from all over the world are constantly having to get better and better in their field because newer and better products are always being made.
1. The primary reason that employment in American manufacturing has seen a drop as time has progressed is due to technological advances. As the machinery of technology has advanced, the need for less and less workers to fill those manufacturing positions has become evident. However these machines continue to produce, and at a much higher rate than human workers, which is the cause of the higher manufacturing output. Most Americans fear that our manufacturing is in a state of decline due to the lower amount of manufacturing workers, yet these workers have most likely found work in another department, as machines continue to create more of an output.
ReplyDelete2. I would not be surprised to find out that manufacturing employment has dropped in Germany or Japan, as these are also well-developed and technologically advanced nations, just like the United States. It is obvious that Germany and Japan have the same resources and machinery that we do in order to produce at such a high rate. These workers that have been displaced now need to find work in other departments, such as services or sales.
3. The American dollars that are sent to Saudi Arabia in order to purchase their oil are not able to be used in Saudi Arabia since they are American. It is for this reason that the oil company will trade in the U.S. dollars in exchange for their own, and the actual American currency will make its way back to the U.S. by way of bond purchase or purchase in/from another company.
4. In order to receive the money that the United States paid for the foreign product, the seller must first trade in the currency to a trader for their own country's currency. The trader then exchanges the American currency for equal value in that country.
5. Many Americans believe that if we were only to buy American-manufactured products, then the money spent on them would benefit the American economy as a whole. This is the wrong idea, as if that were a law to be enacted, the best production possible would not be provided, and competition would not be a factor. In turn, the American standard of living would face a decline due to the inferior manufacturing, and the true best producers would not be in the American economic system of stimulation.
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ReplyDelete1. The primary reasons for the decline of employment in the US manufacturing industry are new innovations and advancements in technology that allows companies and businesses to cut down on human labor costs. Instead of using human labor manufacturers use efficient machines to do work faster and more efficiently and increase output while decreasing costs. However, through cutting down on manufacturing jobs America can now use those people to do other jobs such as other services and entrepreneurship. Most Americans think American manufacturing is in a state of decline due to most goods baring the sticker “MADE IN CHINA” and the majority of jobs lost, around 5 million since 1947, were in manufacturing.
ReplyDelete2. I was surprised to find out that manufacturing was decreasing in Germany and Japan, but once I read that the job loss in America was due to newer technologies, I realized the same thing could happen to other countries too. Displaced workers need to find jobs in newer and evolving fields, such as medicine, technology, or in stable fields, such as teaching or the armed forces.
3. The US dollars that go into Saudia Arabia to buy oil will eventually see re-entry to the United States. Since US dollars aren’t accepted in many places other than the US, after Saudi Arabia trades us the oil for our currency they are forced to either invest in American goods/services or do nothing with it.
4. When the US buys a product from another country, the business that the US is buying from needs to trade in the US currency for that countries currency at a bank. The bank then trades the US currency to Saudi Arabians that want US currency to buy American products or it has to do nothing with the American currency, which is a waste.
5. Many Americans think that “Buying American” is good for economy because it supports American jobs and keeps the money in America. However, this does not work because America only has so many people to manufacture goods, and if America passed a law that banned foreign trade, then the standard of living would go down due to there not being enough people to manufacture higher end products. Also American companies would eventually realize that they would not have to make their products better or cheaper due to the lack of competition with foreign companies. Chinese manufacturers can make goods faster, cheaper, and better than American manufacturers can so we buy Chinese manufactured products, if we limit trade then American companies will continue to be mediocre and will not be pressured to improve.
1. The primary reason for the decline in jobs but rise in production is technology. A car does not need four people to build it when a robot can do it in less time or even better. Americans believe jobs are on the decline because of this fact. Companies want to process as much possible for less. Yet, Americans might forget the fact that we are producing more than ever which is great for business but not for employment in this case.
ReplyDelete2. I am not surprised that the amount of available manufacturing jobs is also decreasing in Germany and Japan as well as the U.S. because all three are advanced nations. Looking at the Automotive industry, all three countries are known for their cars, Japan for Toyota, Germany for BMW, and America for General Motors. An advanced, auto-industry country will more than likely use technology to help produce automobiles. For those who are displaced by technology, they should look for jobs in the Healthcare and rising technology sectors.
3. Saudi Arabia can not use the American Dollar in Saudi Arabia. Although, they have two options. One, they could exchange the American Dollars for Saudi riyals. Two, they could use that American Dollar to buy American produces or set up factories in the nation.
4. When the US buys something from a foreign individual or business, the U.S. can then be used to be exchanged for that nations currency.
5. Americans take pride in buying something with "Made in The U.S.A" written all over it because they believe they are supporting American business. No, this is wrong, it a German drill is better than an American drill, than the buyer should pick the most well constructed drill. This causes competition, the American company sees that most people are buying the German drills so they will begin to improve their drills to be better. Without competition, there is no progress and therefore the standard of living goes down. Without the need to improve, why improve? In the case that a new American law was put in place that said U.S. citizens could only buy American, then the rate of progression due to competition would drop. There would be competition among American companies but only so much that progress could be much slower than that if foreign business would be involved.
1. Employment in the US manufacturing sector has decreased over time because the US economy has transitioned into more of a service economy than a manufacturing economy. We also have technology that makes manufacturing more efficient, so less people are needed to make manufactured goods than before. American manufacturing output is able to continue rising because the US now makes higher end products. Many Americans believe our manufacturing is in a state of decline because they do not see US made goods in everyday life. Everyday household items, such as clothing, are now made more in foreign places like China. The US still manufactures items, but most of these items are complex and high end, such as medical equipment.
ReplyDelete2. It is not surprising that manufacturing employment in Germany and Japan is decreasing at the same rate as in the US because technology there is also allowing for less workers in the manufacturing sector, freeing them up for work in service sectors, technology, etc.
3. US dollars sent to Saudi Arabia for their oil will eventually be put back into the US economy. US dollars cannot be used in the Saudi economy, so their only choices for their money are to purchase our high end products or to invest the money in American stocks, bonds or plants built in the US.
4. When a foreign product is bought in the US, an individual/business in the foreign country gets access to the money by taking it to a foreign currency trader. The foreign currency trader then exchanges the US dollars for the local currency.
5. Americans believe that "buying American" is best for the country because they don't understand that US money sent overseas eventually gets back into the US economy, and they think that giving their money to an American company is the only way to ensure their money gets into the US economy. If a new law reduced us to only buying American products, US competition with foreign companies would stop, meaning innovation would slow down. US companies would stop innovating and finding ways to achieve the best products for the lowest price, and our standard of living would fall behind other countries.
1. The primary reason that employment in the U.S. manufacturing sector decreases over time is because people are being replaced by machines so there is less of a need for manufacturing workers. Manufacturing output continues to rise because technology continues to advance. Most Americans believe manufacturing is in a state of decline because a lot of the products they buy say made in China or another foreign country.
ReplyDelete2. No I wouldn’t be surprised because Germany and Japan’s technology is advancing as well so machines are replacing the manufacturing workers. They will need to find jobs within a growing industry such as healthcare and technology.
3. The U.S. dollar will eventually come back to the U.S. because that is not the currency in Saudi Arabia so the Arabs have no use for it there. One choice they have would be to buy American products with the U.S. dollars. The second logical choice would be to invest the money in U.S. stocks.
4. The U.S. dollars are sent to the business that sold the product, and then the business exchanges the money with the foreign currency trader for their currency. The foreign currency trader sells the U.S. dollars to a different business or individual who wants to buy U.S. products.
5. Americans think that buying American is best for our country because the money stays inside the U.S. and goes straight to a U.S. business or company. Our standard of living would go down because there would be much less competition. Meaning less motivation to make products better. American firms would be more relaxed and not worry about making new and better products.
1. The primary reason that employment in the United States manufacturing sector decreases over time as the manufacturing input rises is because manufacturing jobs are being taken by machines. Technology allows for the increase in production through the use of machines and new and approved productivity methods. Most Americans believe manufacturing in America is declining due to the decrease in manufacturing jobs and the fact that we import many products from China.
ReplyDelete2. I would not be surprised that manufacturing employment is also declining at the same rate in Germany and Japan because those countries’ technological progress allows for machines to replace humans, just like in the United States. The displaced workers need to find jobs in growing fields such as technology. A higher education would be optimal so they could learn to operate and create the machines that took their previous jobs.
3. The U.S. dollars that we send to Saudi Arabia to buy their oil go into currency exchange banks. The Arabs cannot use U.S. dollars in their economy. Saudi Arabia can either use those dollars to buy American products, which help our economy, or simply throw them out, which is a complete waste.
4. The individual or business must exchange the American currency for their domestic currency. That is achieved through a currency trader.
5. Americans believe “Buying American” is best for our country because money is being directly given to these companies, therefore they think they are patronizing them and boosting the American economy. If consumers were required to buy only from American companies, the quality of all products would decline, resulting in a decrease in quality of life. There would be no competition from foreign companies, so the American companies wouldn’t feel the need to keep prices competitive and their products good.
1. The primary reason that employment in the manufacturing sector decreases but the output continues is because of the invention of new technology. The technology allows companies to reduce the number of people working for them while increasing the amount of product produced.
ReplyDelete2. I would not be surprised that the manufacturing employment in Germany and Japan are decreasing. Just like the US, technology is advancing making the need for human labor decrease. Workers that lose their jobs as a result of the improving technology could find other jobs in different departments such as sales or healthcare.
3. When U.S. dollars are spent in Saudi Arabia or in any foreign country the money will eventually cycle back into the U.S. economy. Arabs or any other foreigners cannot spend the U.S. money in their country so they have no other choice then to either throw it away or use it to but something from an American company. They could buy an iPhone or a Go-Pro with the U.S. money that they could not but if they did not have U.S. money.
4. Whenever we buy a foreign product, the business that is receiving the money must trade the U.S. money into get the same amount in their own currency.
5. It makes sense that Americans would think that buying from American companies would better out economy. However, if we only bought from American companies our economy would greatly suffer. It would suffer because American companies would not have any type of competition for their product therefore they would see no reason to improve their product. So not only would the economy suffer but the quality of the products would decrease.
1. U.S employment in the manufacturing sector is decreasing do to the fact that their is more demand in services. Also the advancement in technology is making it so less humans are required to work in factories or jobs related to manufacturing. Americans believe that manufacturing is in a state of decline because they see products all over America that are made in China when really the money is just looping back to the United States and the production is quite successful.
ReplyDelete2. It is not surprising that German and Japanese manufacturing workers are losing their jobs because the same situation is happening in those two countries as it is in the U.S. Technology is advancing and the reality is that humans aren't needed as much in those fields as they used to be in the past. Money is flowing and coming through its just that less employment is needed to produce it. These displaced workers need to find jobs in services and managing, jobs that require humans to plan out the process not make the products.
3. Saudi Arabia will have to do the same with the U.S dollars that China had to do. Once the money from them selling oil gets over there buyers can use the U.S dollars to get Arabian money and the U.S dollars will eventually cycle back to the U.S. Saudi Arabians can only use that money to buy American products so in the end it will be right back in America.
4. The person/business that receives the U.S money must take it to a foreign currency trader. The trader will then sell the money to people around the country that want to buy U.S products.
5. So many Americans think that buying American is best for this country because they think the money will go straight to the American business and it is the easiest way for this economy to get better but that is not true. If we were only allowed to buy American products then money would be going to companies that would be less efficient or not as successful as the foreign companies and in the end the United States would not make as much money or be as successful.
1. Due to a recent rise in technology the need for human labor has gone down in the field of manufacturing. The technology that the humans are being replaced by are typically cheaper and more efficient. Many people believe that manufacturing in the US is in a state of decline because they see that most of our products are made in China, but in reality we are producing more than we were before.
ReplyDelete2. I would not be surprised to hear that manufacturing employment is going down in Germany and Japan as it is in the United States because they are very much like the United States in that technology is putting many people out of jobs in the manufacturing industry. Many of these people find jobs in health care and technology.
3. When we buy oil from Saudi Arabia they are forced to either throw it out or put it back in the US economy. The money is no good overseas so it has to go back into the US or be thrown away. They can buy a US product or invest it back an American Business.
4. When the US buys a foreign product from an individual or business, that person or company can get access to the money by exchanging the US currency through a bank for their type of currency.
5. Many people think that "Buying American" is good for the US because we are buying from other Americans that will keep the money in our economy, but it is actually hurting us. It would hurt our standard of living to only be able to buy American goods. If this happened there would not be as much competition and the quality of products might drop and the price might get higher.
1. Employment in the U.S. manufacturing sector decreases over time because they become obsolete once technology is developed to the point of being able to do their job. Yet because the technology is able to do the work of formerly employed people as efficient or more efficiently, the output of manufactured goods in the U.S. continues to rise. Some Americans believe that manufacturing is in a state of decline because there are less jobs in that sector due to the increased technology leading to a lesser need for people to do the work.
ReplyDelete2. No, I would not be surprised that manufacturing employment is decreasing at the same rate in Germany, Japan, and the United States because all are first world countries that have technology and technological development as a regular part of their life. Displaced workers need to find jobs where they can in order to support themselves but their options may be limited by education and/or job experience. As technology increases, people are needed to develop new programs and provide maintenance or technical support, but again, that is not necessarily the areas of expertise for those who previously held manufacturing jobs. They may end up migrating to another manufacturing job at a less advanced facility that has not had technology come in and replace workers.
3. We do not know exactly what happens to every U.S. dollar sent to Saudi Arabia in exchange for oil, but a lack of united or common currency ensure that they will not be floating around being used to purchase Saudi Arabian goods. Saudi Arabia can save the money we give to wait for a better exchange rate or they can exchange them for their own currency. Exchanging them allows someone else to trade for U.S. dollars and then use those dollars to purchase goods from the U.S.
4. An individual or business in a foreign country would be able to acquire U.S. dollars via their bank or a place where foreign currency is exchanged. Foreign currency exchanges and banks receive it from those who trade their U.S. dollars in exchange for the equivalent in that nation’s currency.
5. “Buying American” is a popular idea because the thought behind it is patriotic and self-serving. U.S. citizens believe that buying only American products boosts the American economy by keeping their money here and away from other countries. Additionally, they may think that this would lower unemployment because we would not be paying foreigners to do a job an American could or wants to do. This idea was put into effect via the Embargo Act during our nation’s early years and it did not bode well for the economy. If this was to occur again today, the overall standard of living in the U.S. would decrease and our ability to trade internationally at any point in the future would be weakened due to the U.S. most likely making inferior products as a result of little competition and people working in fields that is not their specialty.
1. The primary reason that U.S manufacturing sectors output continues to rise is that technology makes making products with less people more officiant. Americans believe that since we are losing jobs in a sector we just aren’t making as much as we used too.
ReplyDelete2. No, I would not be surprised that manufacturing employment in Germany and Japan is decreasing at the same rate as it is in the United States because their capital resources advance at a similar rate to our capital resources. The displaced workers need to find jobs in growing fields like computer science and health care.
3. When we buy oil in U.S. dollars from Saudi Arabia the oil seller can either gives the money to a currency trader or not use it for anything. Assuming the money goes to a currency trader, he sells it to a business that imports U.S. goods.
4. When the U.S buys a foreign product it goes through a currency trader who then gives it to a business who needs it to by U.S. goods.
5. American’s think buying American is a good idea because that is what they hear and it seems logical. Buying goods from Americans seems like the best way to help them. If we could only buy American our standard of living would decrease, in part because American firms would not be incentivized to make as good a product at as low a price because they wouldn’t have to compete with outsiders.
1. The reason why our employment in manufacturing has been in a decline, is because our technology has gotten so much better. With superior technology, human jobs are not needed, as a robot can do the job much more efficiently. Americans sometimes freak out about this and think that we are in a state of decline because we do not have as any human jobs in that sector anymore.
ReplyDelete2. No, I am not surprised, because like America, Germany and Japan are industrialized and modernized. They understand that Human jobs are not as efficient and that machines can do a better job. Because these workers are not employed in manufacturing, they can go to other sectors that need them more.
3. The Arabs can not use our currency. Because of this, they must buy american products with it, or the currency will be wasted. Their 2 options are to buy American goods, or invest in American companies.
4. When the foreign company gets American dollars, they have to go to a bank and exchange it for their own currency. The bank will then exchange the american money to people that want to buy american products with it.
5. A lot of people think that purely buying american is the best because it puts the money back in our own pockets. In reality, buying the best product is the best because it forces American companies to develop their own products to be better. If we had to only buy american, then the quality of products would go down.
1. The main reason why manufacturing output continues to rise despite U.S. employment decreasing over time is because the industrial workers are in less demand as machinery is gradually taking over as the primary labor for production. Many Americans believe that manufacturing is in a state of decline simply because they hear the workers are losing their jobs.
ReplyDelete2.I find it reasonable to believe that manufacturing employment in Japan and Germany are decreasing at the same rate as in the United States. Both are very advanced countries and are very technologically oriented . Displaced workers would most likely be most useful in service professions which need real people to be hands on.
3. When we send U.S. dollars to Saudi Arabia to buy their oil, the money has to come back around into the U.S. Economy. It cannot be used in their economy so the U.S dollars are converted to the Saudi Arabian currency. The U.S dollars go to a foreign currency trader which can either be tossed away which is very unlikely and unintelligent, or exchanged again so a Saudi Arabian can purchase something from America.
4. The U.S. Dollars are most likely received through bank account, but in useless until exchanged for the currency that is used in that foreign country.
5. The amount of Americans who are convinced that "Buying American" is best for the country think this way because they do not look at the long term flow of U.S. currency when it is spent elsewhere. They believe that when the money leaves the country it remains out of the country and disappears into thin air which could not be farther from the truth as the same U.S dollars come back into our economy making it stronger!
1. Due to more efficient labor (ie robots and other technology) labor has decreased over a period of time. This is also why we are producing more than ever before because technology can produce more goods at a quicker rate and a better quality rate than people. Americans think that producing is on the decline have been mislead by the media. The media says that people are having a hard time trying to get a job so if people are unemployed then there aren't any people producing goods so production must be on the decline. They don't understand that technology has taken their place and has started to produce in a muore efficient manner.
ReplyDelete2. I would not be surprised to know that manufactured employment has gone down in countries like Germany and Japan, because they are a well developed nation like the US. They know that from an economic standpoint that it is more efficient to have technology producing goods rather than have more labor produce fewer goods. Some of these workers could get jobs anywhere where they don't run the risk of being replaced by technology.
3. When the US buys oil from Saudi Arabia, the Saudi's receive American money that they can't use there. Therefore the Saudia Arabian people have to buy and trade through the America and so that money constantly gets reinvested into American funds, so our money for buying oil doesn't fund places like Saudi Arabia, it actually funds us. Two things that Saudi Arabia could do with that money is buy more efficient technology to help them drill and manufacture the oil or they could invest in American businesses to help their company grow.
4. When an American buys a foreign product,that foreign company or person can then exchange that American money into their own currency via a bank or a currency trader. Then that American money is given to other Americans who want to use that money to invest in stock or buy goods/services.
5. Americans think that buying American is better for our country because they do not understand how economics works. They think that by buying American that they are helping out our economy and our giving American people a job. Some people may not also want to buy foreign because they hear about the sweatshops in places like China and Bangladesh and there way of protesting it is by buying American. If a new law passed that forced Americans to only buy American made items, then the quality of the product and service would go down because there would be no incentive to work harder and be more competitive in the free market. With places like China working really hard to sell the US shirts, it keeps shirt makers in the US working hard so that they can beat the Chinese with their shirts. That competitiveness is what keeps the Capitalist economy going.
1.The primary reason that employment in the U.S. manufacturing sector decreases over time even though the manufacturing output continues to rise is because productivity is improving. Technology is becoming more advanced and efficient. Better quality products can be produced at a faster rate and without the need for physical workers. Americans believe we are in a state of decline because of the exposure to foreign products and the decreasing manufacturing employment rate.
ReplyDelete2.No, I would not be surprised to know that the employment rate is also decreasing in Japan and Germany because it just means that they are technologically advancing like us. I believe that these displaced workers should learn more about technology and consider going into that sort of field because technology will only keep getting more advanced. It would be useless for them to take up jobs similar to the ones they lost because if technology keeps advancing they will probably lose those jobs too.
3.I would believe that U.S. dollars sent to Saudi Arabia go through the same process that happens when U.S. dollars are sent to China. U.S. dollars cannot be used in Saudi Arabia’s economy. Two logical choices that Saudi Arabia could do with U.S. dollars would be to invest in American companies or purchase American products or services.
4.A foreign individual or business gets access to the U.S. dollars we sent them by exchanging with a foreign currency trader.
5.So many Americans believe that “Buying American “is best for our country because they think that buying foreign products hurts our economy and they don’t know that buying them actually benefits our economy. If a law was passed and we could only buy American products, our standard of living would be greatly affected. The quality of products would undoubtedly get worse due to the lack of competition. There would be no pressure to make a better, more desirable product and you would lose the “bang for your buck” factor. Money would be wasted on products that would not meet the standards previously held.
1. The primary reason that employment in the U.S. manufacturing sector decreases over time, yet manufacturing output continues to rise, is the fact that new technology emerging constantly. With new machinery, the labor force is put at a loss for jobs although America is becoming more advanced at the same time. Most Americans believe that manufacturing is in “a state of decline” even though we are producing more than ever before because of a decline in available jobs and the fact that “made in China” is written on many products being sold in America.
ReplyDelete2. Initially, I was surprised to find out that manufacturing employment is decreasing at the same rate in Germany and Japan as it is in the United States. I was aware that Japan is very innovative with technology, but not Germany. I think manufacturing employment is also decreasing at the same rate in these countries because they are finding new ways to produce as machinery becomes more advanced. These displaced workers need to find jobs in fields with an abundant need for jobs such as the healthcare or computer science fields.
3. The U.S. dollars that we send to Saudi Arabia to buy their oil eventually make their way back to the U.S. U.S. dollars are unable to be used in their economy, resulting in them investing in American products. Another choice is to throw the dollar away, which is not a logical choice. It is much more logical to invest in U.S. bonds or U.S. stock.
4. When the U.S. buys a foreign product, an individual or business in that same foreign country gets access to the U.S. dollars we just sent them by exchanging the currency through a trader in order to receive their own country’s currency. This occurs because U.S. currency is of no use in foreign countries.
5.
So many Americans think that “Buying American” is best for our country due to the common misconception that only actions through the American economy can benefit us. They believe that buying American will prevent loss of jobs and they believe their money will only stay circulating in the U.S. if they initially buy American. If we could only buy American via a new law, the U.S. standard of living would decline significantly. The U.S. would be less motivated as they would have less competition. With no motivation, U.S. companies would gradually stop striving to create the best product out there.
1. The primary reason for this is the constant improvement and implementation of technology in the manufacturing field. Technology replaces people in the industry, and the people it replaces are left unemployed. Most Americans believe manufacturing is in decline because they are more concerned with the lower end, day-to-day products produced by foreign countries. America is busy selling the higher end items, the ones we see less often.
ReplyDelete2. I would not be surprised by this, knowing that Japan and Germany are advanced countries as well. They too are replacing manpower with technology. Those who lost their jobs could look to industries where losing their job to a machine is less likely.
3. When the US sends money to Saudi Arabia for oil, the receiver of the money cannot use it in their own economy. They must visit a currency trader and exchange it for their own country's money. If they choose to keep the US money, they can invest it an American business or buy a US product.
4. They can access the dollar for themselves by exchanging it for an equal amount of their nation's currency at a currency converter.
5. Americans think this because they believe it is "patriotic" and supportive of domestic companies. This is not true, because if a law was passed to make foreign trade illegal, American manufacturers would have no incentive to make the highest quality product. There would be no competition, and the production would soon become lackluster and sub-par.
1. Technology is the primary reason that employment in the U.S. manufacturing sector decreases. This is because when new technology is discovered, it can produce products that faster and more efficiently than humans resulting in technology taking peoples jobs in the manufacturing sector.
ReplyDelete2. I do not find it to much of a surprise that both Germany and Japan's employment rating is decreasing, because they are developed countries and are advancing in technology. The people who are losing jobs do to advancing technology should get jobs in the fields developing technology, and other jobs that cannot be preformed by technology alone like doctors and dentists.
3. When we spend money on Saudi Arabian oil, it helps our economy, because the money comes back to America. The Saudi Arabians can not use American dollars in their countries. Two logical things that would happen would be that people trade the American dollars for Saudi Arabian currency at the bank, and then people trade Saudi Arabian currency for American currency so the can invest in American companies.
4. When we buy foreign products, American dollars get sent to them. Then they trade these american dollars for currency in their own country.
5.Many people think that buying American product will help our economy, because the money is going within America, and not to other countries. If America made a law that said we could only buy American, then it would end up hurting our economy. It would cause the businesses to relax and not try so hard to make a good product, since they know we have to buy their product. If we bought product from other countries, it would be invested in American businesses that deserve the money, and would help our economy more.
1. Employment in manufacturing sector in the U.S has hit a time where humans are being replaced by interchangeable parts such as assembly line robots that do not require a pay check or benefit from a company and we see that manufacturing has hit a rise because of this. Most Americans think that we are declining in producing manufactured products because they see many employs being released from the assembly lines which causes wide spread unemployment, that causes media to catch hold of these stories and report it to the public as if we as an economy are in a state of decline for manufacturing.
ReplyDelete2. To be honest to see that Japan and Germany are in a state of decline in manufacturing employment I would not be surprised because technology throughout the world is rapidly expanding and it is relatively better for companies to use a robot that can work at whatever time and work at faster rate to produce goods. These workers who have been released from their old jobs should find work perhaps in the field where the economy is growing best in which is technology or even in energy companies.
3. The U.S dollar that we send to Saudi Arabia can perform only two things for the Saudi Arabia country, they can either change the U.S money into their own currency which is the Riyal and spend it on American goods or they can hold this money and invest in other American companies that would help their own economy and thus giving the U.S money they spent before, the world trade loop.
4. A foreign country can get easy access to the U.S dollar by contacting a American company selling whatever product they have that the American company wants and then when they have the U.S dollar they can go to a currency trader to turn it into their current currency.
5. Americans think “Buying American” is the best because it directly stimulates our economy but this a narrow way of thinking, you have to look at it as a bigger picture. If an American shoe company was competing with the French shoe company but the American company was not producing great shoes like the French company then you as a buyer would want the best quality and buy the French shoes. Your money then would be could again use for two things, the French company uses the money to invest in an American company or spend it on American goods. This would make the American company compete to make better shoes. If there was a law stating we could only buy American then we would see many American companies produce less better quality products and decline trading products with other nations causing our economy to weaken significantly.
1.One word, Technology. The reason why there is a decrease in employment in the manufacturing sector is because the technology is getting better. Americans believe that the manufacturing business is depleting just because they see the decline in manual labor. What Americans don't know is that as technology gets better the less employees we need but the more sufficient we become.
ReplyDelete2.Seeing these countries rise in unemployment is a sign of a very advance technological age. America and these countries are becoming a lot more reliant to technology. The more reliant we become the less people we need to work. These people losing jobs should find work in computer science, as we see it grow.
3. When America buys oil in Saudi Arabia the seller can either give it to a currency trader or throw away the American money.The reason they do this is because they can not use that money in there own economy. With the money going to the currency trader, the trader can put it back into the American economy.
4. When the US buys something from a foreign country they get access to US currency from a currency trader.
5. People believe that buying american is better, they are not wrong. If people were buying american product just because it was american would not help the economy because the US also depends on other products from other countries. IF a new law passed only allowing us to buy american companies companies and firms wont have incentive to create a better product. Lets say for example that we could only buy american, general motors and ford would not make their cars better with no challenge of foreign ones.
1. The primary reason that employment in the US manufacturing sector decreases over time is because of the introduction of new technology. This technology is more efficient and faster which causes our manufacturing output to rise. The reason most Americans believe we are in a “state of decline” is because a lot of our home and everyday cheap objects are coming from places like China but America is actually producing more than it ever has.
ReplyDelete2. It is not surprising to hear that manufacturing is going down in Japan and Germany as well as the United States because both of those countries want to be the most efficient as they can just like the US. All three of these countries input technology into their manufacturing which creates people to go more into jobs in the technology, agriculture, and health sectors.
3. When we send US currency to Saudi Arabia to buy their oil we are sending money to them that we do not know if what will happen with it. Arabs are not able to use our currency in their own economy so they can either spend it on American goods or services or throw it away.
4. When the US buys a foreign product the person who receives our currency has to go to a bank in their own country to exchange our currency for their currency.
5. Many people believe that “buying American” is best for our country because we are investing in our own economy. If we were only to buy American our standard of living would go way down because there would be no competition between businesses to create better products. American companies would be comfortable with their product because they have no competition if a new law was passed that we could only buy American
1. Manufacturing output in the U.S. is rising despite decreasing manufacturing employment because of technological advances. Machines that manufacture goods are often cheaper and more efficient than humans. They are forcing much human labor out of manufacturing simply because they better at their jobs. Technological advances enable the U.S. to manufacture a greater amount of goods as they force humans out of the sector. Some Americans mistakenly believe that U.S. manufacturing is declining because the U.S. imports many goods from other countries. They may also be viewing misleading statistics that show a decline in employment in manufacturing (which does not necessarily correlate with a decline in manufacturing overall).
ReplyDelete2. I would not be surprised to learn that Germany and Japan also have decreasing manufacturing employment. Germany and Japan, like the U.S., are developed countries with very good economies. I would expect that, like the U.S., they would have decreases in manufacturing jobs as technology replaces human labor.
3. When we purchase oil from Saudi Arabia with U.S. dollars, it starts a long chain of events that ultimately returns the money to the U.S.. The oil supplier in Saudi Arabia must exchange the U.S. dollars for the Saudi Arabian riyal, as they cannot use U.S. dollars in their own economy. The currency trader will then trade the U.S. dollars to somebody who will to spend the money on US goods or invest the money in U.S. companies, thus returning the dollars to the U.S.
4. The supplier for the foreign product must exchange the U.S. dollars for their local currency. An individual or business in that country can then go to the currency exchange and trade for the Us..S. dollars.
5. One of the main reasons Americans may believe that "Buying American" is best is because First, "Buying American" directly supports a company or individual in the U.S., while purchasing imported goods does not. They may see importing goods as giving our money to a foreign country. The U.S. standard of living would decrease if Americans were forced to only buy U.S. goods. Without foreign competition, U.S. companies would not have to continually improve their products to keep up with the world.
1. The primary reason that the U.S. manufacturing output continues to rise even though employment in the U.S. manufacturing sector continues to decreases is the development of manufacturing productivity which became highly efficient. Developing technology allows the manufacturing company to minimize the number of workers and maximize the productivity and output. I think the reason that Americans believe manufacturing is in state of decline is the scarcity of factories and American products compared to the last century. Because they rarely see their own country’s products, they naturally think that America’s manufacturing is in decline.
ReplyDelete2. I would not be surprised to know that manufacturing employment is also decreasing at the same rate in Germany and Japan because they are technologically advanced countries that are constantly developing every day. For example, Germany and Japan’s position in car industry is absolutely in the top. Since they have the technology that can handle mass production of car, they do not need many workers in their factory. Displaced workers need to find jobs in technology or marketing because it is certain that Germany and Japan will continue to strive to develop better technology and increase efficiency of their technology.
3. U.S. dollars that we send to Saudi Arabia to buy their oil will eventually come back to our economy because they cannot use U.S. dollars in their own economy. The two logical choices that Saudi Arabia can do with the money is to throw the U.S. currency away or spend the money back to U.S. The latter is usually preferred.
4. When the U.S. buys a foreign product, the foreign business gets the U.S. money and exchange the money into their own currency. The U.S. money that got exchanged is now accessible by other individual and business in that same foreign country.
5. Many Americans think that buying American is best for the country because it is easy to think that buying U.S. products will simply benefit U.S. directly. U.S. standard of living will be poor if we could only buy American products because the money spent on that American company are unintentionally withheld from another more efficient and deserving American company. Therefore, the competition among domestic companies will be lowered. American firms will lose motivation because the money flows to undeserving companies. In conclusion, U.S. economy will be in trouble.
1. Employment in the U.S. manufacturing sector decreases overtime, yet manufacturing output continues to rise because rising manufacturing productivity (machines and technology) allows the U.S. to make more higher quality products. Most Americans believe that manufacturing is in a state of decline even though we are producing more than ever before because, smaller products like toys and t-shirts come from China and that is what people normally look at. The reality is that we are producing more high quality items that people don't realize were made in the U.S.
ReplyDelete2. I would not be suprised to know that manufacturing employment is decreasing at the same rate in Germany and Japan as it is in the U.S. because Japan and Germany have access to the same machines and technology that help manufacturing productivity.Those unemployed factory workers should find work in industries such as technology or health care.
3. The U.S. dollars that we send to Saudi Arabia to buy their oil come back to U.S. -based company because Saudi Arabia must use those same U.S. dollars to buy U.S. products. The Saudi Arabian company would exchanges the dollars for their currency. The foreign currency trader did this cause he knew he would be able to seel the money to someone who wants to buy American products. The two options are to throw U.S. currency away or send the money back to U.S.
4. When the U.S. buys a foreign product, an individual or business in that same foreign country gets access to the U.S. dollars we sent them by the american draining their bank account and paying them. This vendor immediately exchanges the U.S. dollars for the equivalent amount of foreign currency.
5. So many Americans think that buying American is best for our country because they think that buying products from american companies will improve our economy by keeping those american companies in business. The U.S. standard of living would be worse if we could only buy American via a new law because this new law would not promote competition. Without competition, America would become less efficient because people would be forced to support inefficient and mediocre companies and there would be no incentive for them to perform better. American companies would no longer have to compete with other countries to make the best products. Money would be taken from more efficient and deserving American companies because when people don't buy the better foreign product. If they had bought the foreign product, those dollars would've eventually been used by the foreign country to buy the best quality american goods.
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ReplyDelete1. The primary reason that employment in the US manufacturing sector decreases over time, yet manufacturing output continues to rise is the advances in technology. Machines are becoming more efficient workers in the manufacturing sector, and they are able to produce more. Many Americans believe that manufacturing is "in a state of decline" because there aren't as many jobs in manufacturing as in the past. These people do not, however, realize that new technology and machines (like the assembly line) are producing more and faster.
ReplyDelete2. The fact that manufacturing employment is also decreasing in Japan and Germany does not surprise me at all. Technology is probably advancing as rapidly over there as it is in America, with more people realizing that it may be cheaper and more effective to transition from workers to machines. These newly unemployed former manufacturing workers should look to find jobs in the field that took their place: technology. Because technology is always advancing, there's always room for new people and ideas.
3. When we send US dollars to Saudi Arabia to buy oil, they cannot use this money in their own economy. Instead, they must exchange it for their own currency, and the foreign currency trader will in turn sell the US dollars to Saudi Arabians who then buy American goods or services. This boosts both economies by encouraging competition. The other option for the Saudi Arabians who receive US dollars from selling oil is to throw the US dollars out.
4. When the U.S. buys a foreign product, how does an individual or business in that same foreign country get access to the U.S. dollars we just sent them? When the US buys a foreign product, the individual or business in that same foreign country gets access to the US dollars we just sent them by using a foreign currency trader. The foreign individual or business will get the US dollars, but these are of no use to them in their economy if they use a different currency. Therefore, they trade these US dollars in at their foreign currency trader and get back the currency used in their foreign economy.
5. The main reason Americans think "Buying American" is the best is because they haven't taken an economics course and believe what the politicians and everyone else says. "Buying American" sounds great because the money stays inside American, but in reality the money comes back to America anyways, and to better companies, when you buy simply the best product, whether it's foreign or American. If there was a law made that said that we could only buy American, the American economy would suffer because competition would not be promoted. American companies would become lazy and content with what they have, instead of pushing to find the next thing to help them stay on top. The United States's standard of living would drop if this law was created because there wouldn't be enough luxuries being manufactured.
1. Each day we make new advances in technology, in the case of manufacturing that technology ends up essentially replacing a great deal of the human workers. While there are less people being employed in the manufacturing industry, that is not because we are buying all our products from China or other foreign countries, it is because workers aren't needed with all the technologies we have. Although they decrease employment in this field the new technologies also produce products more efficiently than humans ever could, resulting in an increase in goods manufactured in America. Most people do not understand this and think that employment in manufacturing is decreasing because we are manufacturing less when in reality it is the complete opposite.
ReplyDelete2. It does not surprise me at all that employment is decreasing int he manufacturing sector of Japan and Germany as well. Technology is advancing everywhere in the world not just in the United States and so it is expected that technology would have the same effect on foreign economies as it does our economy. These displaced workers in these countries should look to find jobs in the areas like technology and healthcare that are currently thriving.
3. Any money that we send to Saudi Arabia for oil will end up cycling back into the U.S economy. The Arabs cannot use our U.S currency in their own economy so they can either spend it on American goods or invest it in an American company.
4. After receiving our American currency, they must take that currency to a foreign currency trader to exchange our currency for the equivalent of their own.
5. Many Americans think that "Buying American" is best for our country because they are under the impression that once the money goes to China or another foreign country it stays there. If by law we were required to only buy American made goods our standard of living would decrease greatly because competition would decrease allowing companies to make products of lesser quality and not giving them any incentive to do better. If an American t-shirt company has no competition then they have no reason to make quality goods, they can make the same amount of money buy making goods of lesser quality.
1. The primary reason that employment in the US manufacturing sector decreases over time is the rising manufacturing productivity due to machines and technology replacing humans. Though most Americans believe manufacturing is “in a state of decline,” we are producing more than ever before because the US is growing faster in services than in manufacturing.
ReplyDelete2. No, I would not be surprised that manufacturing is decreasing at the same rate in Germany and Japan as it is in the US. I think this is probably due to the rising manufacturing productivity (developments in machines and technology). These displaced workers need to find jobs in other growth industries like technology or health care.
3. Saudi Arabia can exchange the US dollars with a foreign currency trader for the equivalent of Saudi Arabian currency since they cannot spend the US dollars in their own economy. Saudi Arabia can spend the US dollars back in the US for deserving American products. If Saudi Arabia does not spend it immediately, it can save and invest some of the US dollars into the US economy by building plants in America, buying US stock to fund American companies’ expansions, and buying US bonds.
4. When the US buys a foreign product, an individual or business in that foreign country gets access to the US dollars by either exchanging them with a foreign currency trader or spending the US dollars back in the US for American products.
5. Many Americans think that “Buying American” is best for our country because it helps the economy by preventing the loss of American jobs and incomes. If we could only buy American, we would be hurting the economy by subsidizing less efficient American products (as opposed to preferable foreign ones). We therefore would remove the incentive for the American company to perform better because there is no foreign competition for them to compete against. American firms might then in turn begin to be less inclined to improve, since they are getting the money either way. Also, more deserving American companies now cannot eventually receive the money from foreign buyers because the money has gone to a less deserving American company.
1. The main reason why manufacturing jobs have been decreasing in the US is because technology advances and becomes more efficient. As new manufacturing processes and techniques are developed, human workers who were formally responsible for a certain task are being replaced by robotics systems. These technologies allow a more streamlined manufacturing process, which saves the company time and money. It also allows them to create more of their product with greater efficiency. Americans see the surge of people being let go as a result of manufacturing improvements and think something is wrong. They don't realize that those people let go are able to be of better use somewhere else in another job where humans are required, as machines take over the unneeded and repetitive job of manufacturing.
ReplyDelete2. I would not be surprised that other 1st world countries experience the same decreasing of rate of employment in these areas. Technology between advanced societies are usually shared and counties like Japan and Germany are also able to develop more efficient manufacturing lines. This allows them to relocate their human workers, like the United States, to somewhere more useful and suiting. These workers can find jobs in another field where more manpower is required such as healthcare and jobs involving the booming tech world.
3. When United States currency is sent to another country to buy foreign products, it will eventually make its way back into the US economy. US Currency is useless in foreign currencies and therefore must return back where it originated form, the US. An option a foreign country might have is to spend the money by purchasing American goods, which will put the currency back into US circulation. Another option for them is to dispose of the money, which would be inefficient and a waste of their own money.
4. When a foreign country buys American products, they must exchange their own currency for an equal amount of US dollars. This is usually done at a local foreign currency trader.
5. People generally believe that "buying American" is good for the economy because it sounds better than sending money to a foreign country. They want America, their own country to succeed financially and economically. However due to misinformation, they could be doing the exact opposite of their intentions. People believe that money spent on foreign goods is lost forever and it doesn't ever circulate back into our economy. This would persuade them away from buying foreign goods and supporting "American" goods. If law required Americans to buy domestic goods, competition between companies would drop. Foreign countries would have no chance in competing in the US market, and similarly, US companies would only have competition with other American companies. Without competition, it is nearly impossible to have a healthy economy. Companies wouldn't have any motive to produce quality products because they have no one else to compete against, and consumers are forced to buy their products. If the quality of goods drops, the standard of living for US citizens would also decline. Prices of goods may rise because they have nothing to compare themselves to, with foreign goods usually being cheaper to produce and sell.
1.The primary reason that employment in the U.S. manufacturing sector decreases over time is because new technology replaces the amount of workers needed to produce the same products. The U.S. is now able to produce higher quality goods, without as many workers needed, while also increasing the productivity output. Americans believe that manufacturing is “in a state of decline” because all they see is the unemployment rate rising, not the productivity rate increasing.
ReplyDelete2. I am not surprised to know that manufacturing employment is also decreasing at the same rate in Germany and Japan as it is in the United States, because better and more efficient technology is being invented all around the world, not just in our country. The displaced workers need to find jobs in areas such as services, since the one in manufacturing is lost.
3. The U.S. dollars that we send to Saudi Arabia are exchanged for their own currency, since it cannot be used in that specific economy. Saudi Arabia now has two options that can be decided on what to do with the U.S. dollars. One, it can be used to buy American goods, which will put the money right back into our own system. Or, the second option, is to invest or save the money for future purposes.
4. The individual or business in the foreign country obtains access to the U.S. dollars we sent to them by exchanging the money with a currency trader for the currency of that specific country.
5. Americans believe that “Buying American” is best for our country because it is patriotism and that the purchase is helping the economy more than buying the product from a foreign country. However, this is wrong because purchasing the better product from a foreign country is better for the economy due to the fact that the nation’s income is increased amongst other things. . It is okay to “Buy America”, but only when the product is better, otherwise the companies have no need to strive for producing better products.
1. The primary reason that employment in the U.S. manufacturing sector decreases over time is because of the rapid improvements of technology. This causes the output to constantly and continually rise. In other words, new machines and technologies are more effective and can produce a greater output. This technology puts people out of jobs, but it ultimately helps the economy by greatly increasing the manufacturing output. Most American’s believe that we are in a state of decline because of the unemployment rate, and that many Americans have not taken an econ course before, thus making them less educated on what increases production.
ReplyDelete2. I would not be surprised to hear that manufacturing and employment is also decreasing in other countries such as Germany and Japan as it is in the United States. Technology is greatly improving, and competition between other countries sparks a flame that makes other countries want to do better to succeed and be wealthy. These displaced workers that are replaced by growing technology can find work in other places such as a grocery store or a gas station. Although not the ideal job, it still counts as being employed and it does in fact contribute to the nation’s overall economic status.
3. The money that the U.S. spends on oil in Saudi Arabia is our own currency, and cannot be spent in this country. As a result of this, when we buy oil from a country like this, the money comes back to a U.S. business. When the money spent on oil goes to Saudi Arabia, the oil vendors then use that money to buy American products such as toys or other devices, which stimulates our economy to thrive and prosper. Our currency is virtually useless in a country like Saudi Arabia, so they have to use it to buy American. If they choose not to spend the money directly on American goods, they will have to exchange it for Saudi Arabian currency. In this case, the money will then be in a currency exchange center, where other people seeking American currency can then purchase it to buy American products. At the end of the day, the money we spend on countries like this will most likely end up coming back to our economy to help out a willing and honest business.
4. The business that receives the currency that we sent them for their products must go to a currency exchange center. The currency that we send them is virtually useless, so they must exchange our money for theirs, and acquire their own currency based off of what the exchange rates are.
5. It is a logical thing to think that buying American helps our economy because we are directly spending our hard earned money on an American company. In reality, it is more effective to buy the highest quality product for the best price, even if it is from China or India over America. The money will come back to another American business in one way or another, which in turn helps us out. If we could only buy American, our standard of living would greatly decline. First off, there are numerous products that we get from foreign countries that we can’t produce ourselves, which we would have to go without. American firms would then react strongly against this new law to only buy American. Think about it, no foreign cars or products, only American. It would not go over very well, and foreign trade is an essential thing to our economy.
1. The reason that employment in the U.S. manufacturing sector decreases over time and output continually rises is because as technology increases, so does the efficiency of machines in industry. Jobs that used to be done by hand are now automated, so they do not require a person for the tasks, therefore less people are employed in the manufacturing sector. However, the machines are much more efficient than the people and can create a greater quantity of products; so as employment of manufacturing decreases, productivity goes up because people are being replaced with more effective machines. Most Americans believe that our manufacturing is in a state of decline because we import many of our consumer products like clothing our toys from China. They see this as not supporting American companies and hurting the domestic economy because they do not understand that while the United States is not a major producer of civilian products like clothes or shoes, it is still a major producer in complicated and important goods and services like heart surgeries and airplanes.
ReplyDelete2. It is not surprising that Germany and Japan’s manufacturing employment is decreasing at the same rate as the United States because they are the other two most advanced and productive economies in the world. Japan and Germany are technologically advanced like the United States, so the equipment they use in production is also more advanced, which means they require less workers. The displaced workers who cannot find jobs in manufacturing are pushed to find jobs in growing industries like technology and health care.
3. The U.S. dollars that are spent on oil in Saudi Arabia ultimately return to the United States markets. This is because the money given to the foreign company has to be exchanged for the currency of Saudi Arabia since they cannot use USD in their own economy. Then when a Saudi Arabian company or consumer wants to buy an American product, they have to go exchange their currency for USD. This USD is then put right back into the U.S. economy, so in a roundabout way, the money you spent on oil buys someone else’s iPhone. Saudi Arabia can also throw this money away, but then they could not purchase important goods and services that you can only get from the U.S.
4. To access USD in foreign countries, an individual or business must go to a currency trader to exchange either their foreign money for USD or USD for their own currency.
5. Americans think that “Buying American” is helpful to the U.S. economy because it is believed to be both patriotic and supporting our economy at home. If the U.S. only bought American, the standard of living would go down because people would not be buying the best quality products. They would be content with mediocre quality products purely because they were made in America and not because they are actually good products; international trade is what forces American companies to continue to improve and be compete so that they can stay a formidable competitor. A law requiring that one may only buy American would force the quality of living down because companies would not be inspired to work harder and produce better products.
1. Although the US has lost several million jobs in manufacturing does not directly mean that their manufacturing levels have decreased. This is due to an increase in manufacturing technology and efficiency. Companies are now able to make more products in less time with less human involvement. This decreases production costs and increase profit. That is why the US is still a global manufacturer even though it doesn’t have as many people in the sector. Some countries still rely on human labor as they are not as technologically advanced as the US.
ReplyDelete2. A lot of economically developed countries and MEDC’s often invest more labor and time into various services rather that manufacturing. This is because services often require more thinking and a higher level of education and most developed countries have these high levels of education compared to some less developed countries which still rely on manufacturing using less skilled workers. This is why Germany and Japan manufacture less than the US because they are beginning to focus on various services and technology which makes their economies less reliant on manufacturing.
3. People believe that buying American will help the American economy and on the surface that makes sense but when you delve deeper, it doesn’t. If we buy foreign products that are better than national products then the money that we spent will eventually circle back into the US economy due to the restraints that different currencies have on each other. US dollars can’t be spent in China; they can only be spent in the US thus meaning that any money we give to them will eventually have to come back to the US economy.
4. Big companies make contracts with other international countries and this allows them to trade with each other in a fairly mutualistic relationship depending on the products. Each company will most likely have to continue buying from the other (or the country) as they will have each other’s currency. This strengthens both sides economy as the money spent on goods eventually ends up back where it came from.
5. Buying a product just because it is American is not a good idea. If the product is not as good foreign products then you are just promoting mediocracy and the American company will be undeservingly receiving money for a product that is not the best on the market. This will decrease competition in the global market and companies will no longer have to improve their products because they are receiving money due to people believing that they are patriotic.
1. The reason that employment in the U.S. manufacturing sector decreases over time, yet manufacturing output continues to rise is because of new technology. Companies can produce high end products without needing as many workers. Americans believe that manufacturing is in a state of decline because of the unemployment rate in manufacturing, but don't realize that we are producing more products at a faster rate and helping our economy grow.
ReplyDelete2. I would not be surprised to hear that because new technologies are always being invented. Just like the US they are able to create products at a faster rate but they also have to get rid of employees whose jobs can be done by machines. Those workers should find jobs in places such as technology or health care.
3. The US dollars that are sent to Saudi Arabia to buy their oil eventually cycles back to the US. The US dollar is not part of their economy, so they are not able to use it. The only smart thing they could do with the money is to buy american made products. They could also throw it away, but this would be pointless because they could use it to buy more American products.
4. When the US buys a foreign product, the individual must go to their national currency trader and get the same amount of money in their own currency.
5. People believe that buying american is best for our country because it stimulates our economy. It is actually better to buy foreign products because that money will eventually circle back to the US because people will buy american products.If we could only buy American we would have a worse economy because we wouldn't be able to get our money back from the foreign countries who want to buy American products. Also there would not be any competition for companies to make their products better.
The primary reason that employment in the U.S. manufacturing sector has decreased over time, while manufacturing output continues to rise is because of the production of new and improved technology. Less people are being employed in the manufacturing sector because new machines are taking their place. People think that manufacturing is "in a state of decline" because the number of people employed in the manufacturing business has dropped drastically from what it used to be. They also think the U.S. manufacturing is in decline because most of the household products we come in contact with everyday are made overseas.
ReplyDelete2. It would not surprise me at all to hear that manufacturing employment is decreasing in Germany and Japan because I am sure they are developing new technology (machines) as well. These displaced workers need to find jobs in other useful areas such as health care and social work.
3. The dollars that we send over to Saudi Arabia for oil are just about useless to people/businesses in Saudi Arabia. They cannot be used to purchase products in their country. They can trade the U.S. dollars in to a currency trader, whom will sell it to other Saudi Arabians who will use the money to buy American products. The other option is to throw the dollars out, which is not advised.
4. When the U.S. buys foreign products, the business that the dollars go to must be traded into a national currency trader for whatever it is worth in that country's native currency.
5. Americans think that "buying American" is better for the economy because the money stays in the country. What they don't realize is that the dollars they spend will end up back in the U.S. economy either way. If a new law was passed stating that we could only by American, our quality of products would be in shambles. Competition in the world market is what motivates American companies to produce better products. If the threat of Americans buying foreign products was gone, the American companies would not have to concern themselves with improving the quality and price of their product. They would make the sales even if their products were good or not because of the lack of competition.
1. The primary reason manufacturing employment decreases while output increases (over time) is because of constant improvements in the US manufacturing processes that makes them more efficient. These improvements are due to the constantly evolving innovations in technology. Therefore, more goods are able to be produced while the number of people involved in the process decreases. Most Americans believe that manufacturing is in decline due to the fact that American consumers believe most goods are manufactured overseas. The reality is that while many common goods are manufactured in foreign countries, high end and high technology goods are manufactured in the US.
ReplyDelete2. I am not surprised to know that manufacturing employment is also decreasing in Germany and Japan. Both are well developed countries with strong economies. Both economies are bolstered with technology innovation. This, as in the US, reduces the number of people needed to work in the manufacturing sector. Manufacturing processes become more efficient. The people not employed in the manufacturing sector are thus moved into other industry sectors such as service provision (e.g. hospitality).
3. US dollars that the US sends to Saudi Arabia to buy its oil are used by Saudi banks and investment firms to invest through US banks and other US financial institutions. This money is also used to purchase US goods and services needed by Saudi Arabia. The US dollars cannot be used on the local economy. However, as noted above, they can be used to purchase US goods and services. For example, it can be used to purchase military fighter jets from US companies, thus putting the money back into the US economy.
4. When a US business or other entity purchases a foreign product (s), that foreign business obtains access to the US currency through its own financial institutions. Then, that foreign business uses that money to purchase other goods or services from US companies. Thus, the 180 degree process that puts the money back in US hands!
5. Most Americans think that "buying American" would improve the US economy. However, if this were to occur or a law be passed requiring this, it would create a protectionist economy and completely stifle any international trade. Innovation would suffer and products produced in the US would never improve. Product quality would stagnate. US companies would be unwilling to invest in their own businesses to improve product quality. They would not need to! Foreign organizations and companies would not buy these products as they would likely become inferior to those of other countries. One must believe in the 180 degree process to understand that open and free trade is necessary for an effective economy.
1. The primary reason why employment in the manufacturing sector is decreasing is because of the rise of manufacturing productivity. New machines and technology are replacing humans because they are faster and more efficient. Many Americans believe that manufacturing is going through a state of decline because workers are being let go (due to technology) and is continuing to lose jobs due to economic activity.
ReplyDelete2. I would not be surprised if Japan and Germany were losing jobs in manufacturing. I think Germany and Japan are in the same shoes as the American people because they are technologically advanced. Machines and robots are proving to be more efficient so those workers are being released. The workers need to find jobs in services, such as health care, because those jobs are on the rise.
3. The US dollars we send to Saudi Arabia most likely would end up in a foreign currency exchange. The dollars would end up there because the Arabs cannot purchase their own products with US dollars. The Arabs cannot spend those dollars in their economy. Therefore, the two logical choices would be to spend or save the US dollars on US products.The Arabs could buy US bonds or stocks as well. Another option they could do is throw it away but that is not that logical.
4. The business that receives the US dollars would have to go to a foreign currency exchange center. They have no use for the dollars in their economy so it gets traded.
5. Americans probably think that buying American is better because they cannot imagine how the money comes back to the US. They think trade is stimulating only that foreign country's economy. If a new law was passed saying we could only buy American, US businesses would get lazy and possibly raise the price since there is no competition. Competition is good for the economy, the consumers get better deals and can get more for their money. The elimination of competition would mean businesses no longer have to keep improving their design/model. With no competition, they can price their products at whatever they want.
1. The primary reason for a decrease in employment in the manufacturing industry while products increase is the technological advances and automation in the workplace. Most Americans think there is a decline in manufacturing because every day products are most commonly produced in China, but in fact manufacturing is higher than ever due to higher level products such as medical equipment that is not seen day to day by most Americans.
ReplyDelete2. It makes sense that there is a general decline in manufacturing workers in other countries along with the United States because of the advances in technology. These workers need to find a field that they fit into that is not already filled that conducts services and provides assistance to others. There can be a shift to more doctors, schoolteachers, farmers, and construction workers.
3. The dollars that are spent for oil from Saudi Arabia are useless to an Arab because they use different currency so they would have two choices, to throw the money away or spend it in America for American products.
4. The foreign individual or business gets access to the U.S. dollars by trading it to a currency trader in exchange for their countries money. It is then cycled back into the U.S. economy for American goods.
5. People think that buying American is good for the country because it supports the local businesses. It can actually have a negative effect on U.S. standard of living because there would be no competitive edge that pushes companies to upgrade their products. If a new law was passed to only allow people to buy American, the standard of living would decline. An American firm would have no motivation to assist customers accordingly because Americans would have no choice but to continue the use of the American firm.
1. Innovation of technology, that is the primary reason why employment in the US manufacturing sector decreases while the output rises. US businesses and companies are inventing and designing more new and efficient machinery that can produce more goods and services at a more efficient rate than a human worker. This, in turn, leads Americans believe that manufacturing in the US is "in a state of decline" because as more people lose their jobs, Americans believe there is less manufacturing due to the lessening of the human workforce. These people do not see the larger picture and the opportunities to seek out and strive for jobs that machines and technology can't perform better than humans can.
ReplyDelete2. No, I would not be surprised to know manufacturing employment is also decreasing at the same rate in Germany and Japan as it is in the US. Like the US, Germany and Japan are also manufacturing giants with decent economies. Because of these facts, it is expected for Germany and Japan to be in step with the US as they replace humans with machines.
3. When our US dollars are sent to Saudi Arabia, the oil company seller has to exchange them for Saudi riyals in an Arab bank. The seller completes this transaction because US dollars are worthless to the Saudi Arabia economy so they need to exchange for riyals in order to buy products in Saudi Arabia. These dollars then sit in the Arab bank until another Arab comes along to exchange riyals for US dollars to buy American products from American companies which then improves our economy. Another way the oil seller can use his dollars is to save and invest those dollars straight back into the US economy.
4. The seller of the foreign product must trade his US dollars for his local currency in order to purchase goods and services in his country. Once these US dollars are in the Arab bank, individuals or businesses can exchange their local currency for US dollars which then they can purchase American products from American companies.
5. Many Americans believe "Buying American" is better for economy because they think "Oh, I am going to be giving the American companies my dollars to support them instead of some foreign company." If the government made a new law saying Americans could only buy American products, quality of American products would flat line, innovation and design would flat line, standards of living would flat line, and the owners would have no incentive to change it. Since these owners have no competition and there is a law saying people have to buy their product, then they just had to sit there and wait for the money to come because they would not need to improve their quality or design. Competition helps increase quality and lower prices of products and it bolsters the economy to help it grow and improve the standards of living.
1. The primary reason that employment in the U.S. manufacturing sector decreases over time is the implementation of greater technology in factories. More industrial robots have replaced human workers and they produce much more goods in a quicker time period. Americans believe that manufacturing is “in a state of decline” because all of these workers are leaving the factories, when in reality, they are being replaced with technology that can do the same work.
ReplyDelete2. I would not be surprised to know that manufacturing employment is also decreasing at the same rate in Germany and Japan as in the U.S. because when new technology becomes available, many different countries will want to have the latest and greatest technology. These displaced workers now have to find jobs like health care workers or building new technology.
3. When the U.S. spends American currency on oil in Saudi Arabia, the money eventually finds its way back into the U.S. because the Saudi Arabians cannot use the U.S. dollar bill in their country. The Saudi Arabians could either throw away all of the U.S. dollars they receive or they could save it and use it to buy things from America.
4. When the U.S. buys a foreign product, the money is sent to the business in that foreign country. The business can then go to a currency trader and trade in the U.S. dollars for their local currency.
5. So many Americans this that “Buying American”is best for our country because they think if they only buy American, they will only be supporting the U.S. economy. However, if Americans were to only “Buy American”, our economy would actually go down. If we were forced to only buy American, they quality of the products would decrease. Competition between companies to have the better product would diminish and our economy would suffer as a result.
1. The primary reason that employment in the U.S. manufacturing sector decreases over time is but output continues to rise is the creation and invention of newer and more efficient manufacturing methods. Although we may not need as many workers, the new advanced technology used for manufacturing can create more than ever before.
ReplyDelete2. It is not shocking to see that employment in the manufacturing sector is decreasing around the world because every country is improving their manufacturing technology in order to increase their production rate. These employees that are now losing their jobs due to improved technology should maybe look into a job in the technology sector to try and improve technology even more.
3. When U.S. dollars are sent to Saudi Arabia to buy their oil, many think that it is a waste, when in reality; our money has no value over there so they turn it around and spend it back over here where it has value and they purchase our goods that we create. Another choice they have is to trade our money with another country so that country can use U.S. dollars to buy our products.
4. The only logical option for an individual or business in a foreign country that gets U.S. dollars after our purchase is to take the dollars to a local bank currency trader to trade the U.S. dollars in for their own currency that they can spend. The currency trader is now able to take those dollars and spend them on American products or trade them for another currency.
5. Many Americans think that “Buying American” is best for our country because we keep the dollars here in the United States and we are promoting American jobs. The actuality of this is if we only spent our money in America, we are limited to American products and cannot receive goods from other countries. The foreign products are sometimes better which encourages the American competitor to work harder to create an even better product. If we spend our money in foreign countries, we receive a product that we don’t have here in America and we will eventually get the money back when that country spends it here, since it has no value overseas. If a law was created that only allowed “Buying American,” the American standards would drop because there is less competition, meaning the companies would not be as challenged to create the best product, causing it to be less valuable.
1. The primary reason that employment in the U.S. manufacturing sector decreases over time, yet manufacturing output continues to rise, is a result of manufacturing productivity. This means that machines and technology are replacing humans so the U.S. can now produce higher value manufactured products than ever before. The reason most Americans believe that manufacturing is “in a state of decline” even though we are producing more than ever before is because less humans are working in the manufacturing industry, as they are being replaced by machines and technology.
ReplyDelete2. I would not be surprised to know that manufacturing employment is also decreasing at the same rate in German and Japan as it is in the United States because machines and technology are more efficient than employing labor. These three countries are using the same technology advancements. These displaced workers need to find jobs in technology or health care, if it is not in manufacturing.
3. The U.S. dollars that we send to Saudi Arabia to buy their oil is eventually circled back into a U.S. - based company, not a foreign company. The Arabs cannot use our U.S. dollars in their own economy. Two logical choices that Saudi Arabia can do with the U.S. dollars that we send them for their oil is purchase products from Apple or Microsoft.
4. When the U.S. buys a foreign product, an individual or business in that same foreign country gets access to the U.S. dollars we just sent them through a currency trader to convert the U.S. dollars into their respective currency.
5. Many Americans think that “Buying American” is best for our country because they think that they are helping our economy out by paying an American company instead of a foreign company, but in reality this just hurts our economy. The U.S. standard of living would decrease and not be as efficient if we could only buy American via a new law. This would eliminate competition between American companies and foreign companies, thus allowing the American companies to raise their prices and lower the standard of their product. An example of this could be shown in the car company. For example, if a law was passed saying we could only buy American cars, they would have no competition. Ford Motors would not have to worry about updating and improving their cars to compete with Toyota. This law would hurt the American economy, not help it.
1. The main reason that the manufacturing output is increasing is because of technology advancement in every sector of the industry. Since we have better technology this means less work force in the manufacturing area. That means overall decrease of human labor.
ReplyDelete2. No I would not be surprised because each of those countries has the same technology level as the United States. This is because technology is worldwide. Everyone has access to the highest technology and they are using it wisely. Displaced workers nowadays need to be highly educated in order to find jobs that are not in manufacturing.
3. The money we send to Saudi Arabia to buy their oil gets changed into their own currency. Yes, the Arabs can exchange our money into their currency and then they can buy machinery etc. The two logical choices that Saudi Arabia can do with the US dollars is, trade in for their own currency, or use it as an investment and wait until the dollar value is stronger and then trade it in for their own currency.
4. When the US buys a foreign product, the individual or business that receives the money would need to go to a local bank and exchange it for their own currency. This also depends on the Business transaction whether they want to make the transaction in US dollars or their own foreign currency. Most countries like dealing with the US dollar because it is one of the strongest currencies out there. It is also a good exchange value, with minimum value change.
5. I think that when we say “Buying American” is best for our country this means we are buying American products made here by American workers and the money stays in the states and it does not leave the country. I think that instating this law the dollar would be stronger against other currencies and the standard of living would increase.
1. The primary reason that employment in the U.S is decreasing is because of technology. Since machines have advanced the need workers has decreased drastically. As the technology gets better, the output continues to rise. Americans believe that manufacturing is in a “state of decline” because the amount of workers is decreasing. This in fact, is false because the workers have been replaced with machinery that is far more efficient.
ReplyDelete2. I would not be surprised to find out that manufacturing employment is also decreasing in Germany and Japan, because these nations are also very up to date with their technology. Japan and Germany both have the same resources we do and their technology and machines can produce at the same rate as the technology and machinery here in the U.S. These displaced workers need to find jobs in other departments, business and sales.
3. The American dollars are sent to Saudi Arabia to buy their oil. Since the American dollar cannot be used, oil companies will exchange the U.S. dollars for their own. The money will end up coming back to the U.S. in the long run through bonds and other purchases.
4. To get the money that the United States paid for the foreign product, the seller has to make an exchange for their own country`s currency. It is then changed to the American currency for equal money.
5. Many Americans think that “buying American” is best for their country because the money spent on American items would help the overall American economy. This belief is wrong. Although, the American standard of living might face a decrease in manufacturing, and the best producers would be outside of America.
1. The primary reason employment in the manufacturing sector goes down is because of the rise of technology. Technology can do the job of multiple workers in a very simplistic and efficient way. People think we are in a state of decline because of all of the job loss. As mentioned above, these jobs are now completed with technology.
ReplyDelete2. Honestly, I am not very surprised to know that Germany and Japan’s manufacturing employment numbers are decreasing as well. Almost all countries have entered the modern age of technology. The displaced workers need to find jobs by possibly working in the technology industry or for example in health care.
3. The dollars that we send to Saudi Arabia go to a foreign currency trader and ultimately end up back in the United States in another business. The two logical choices Saudi Arabia could make with the U.S. money would be to buy a U.S. product or to invest it in a U.S. business.
4. The person in the foreign country needs to go to the foreign currency trader and swap out the U.S. dollars for the native dollar.
5. People think that buying American is bad for our economy because they think that all of our money is going to the other country and is staying there forever. Our standard of living would go down if we could only buy American because the American countries would feel no need to better their products (competition) because there would be no competition. Many American firms would probably relax their business and possibly try to conserve as much money as possible.
1. The primary reason why employment in the US manufacturing sector decreases over time but manufacturing output continues to rise is because technology is advancing and more machines are being developed. These machines replace humans and work more efficiently, which is why there is a greater manufacturing output. Even though we are producing more than ever before, most Americans think that manufacturing is in a "state of decline" because they see that almost all common products in the US are from China and think that the US produces nothing.
ReplyDelete2. I would not be surprised to know that manufacturing employment is also decreasing at the same rate in Germany and Japan as it is in the United States because they are countries that are also advanced in technology and health care, which is what most of their workers work in.
3. When the US buys oil from Saudi Arabia with US dollars, the Saudi Arabians cannot use those US dollars in their economy, so they either use them to buy products from the United States or they do not use them at all.
4. When the US buys a foreign product, an individual or business in the same foreign country gets access to those US dollars by either exchanging them for their own currency or using them to buy American products.
5. Many Americans think that "Buying American" is best for our country because they think that it is patriotic to help their own economy. They think that it is unpatriotic to buy products from foreign countries instead of buying American products because it will hurt the American economy as jobs and income will be lost. Our US standard of living would decrease if a new law was passed stating that we can only buy American products because the US would have to focus more on manufactured labor as there would no longer be other countries we could purchase manufactured goods from. More focus on manufactured labor would lead to less focus on high-skilled or high-educated labor, which would lead to a lower standard of living. As a result of this new law, there would be less competition for American businesses as there would no longer be any other foreign businesses to compete with and the quality of the products produced would decrease.
1. The primary reason of decreasing employment rates in U.S. manufacturing sector, while manufacturing output continues to rise, is the use of technology. As our society grows and develops and continues to creates new, better, faster, and more useful equipment, we are able to produce at a much faster rate. Machines can replace human jobs, nearly eliminating error, doing the work consistently and faster, and a machine can work a lot longer than a person can. Many Americans believe that manufacturing in the U.S. is in a state of decline due to the fact that we never see goods manufactured in America, it seems as though they are all from China. We also see this belief due to the falling employment in the industry.
ReplyDelete2. This doesn’t surprise me, and it’s probably because the world advances technologically at similar rates, especially since it is so easy to share information over oceans with modern technology. We all are living in a changing world, and are all creating the technology that calls for a lessened supply of human labor. These workers that are no longer needed in a given manufacturing position are forced to find new work, which allows the newer ideas to grow. This also may force them to think of something new.
3. The U.S. dollars sent to Saudi Arabia to buy their oil are eventually sent right back into our own economy. Since the U.S. dollar is not accepted in Saudi Arabia, they are given only 2 choices; they can throw their money out and lose all of it, or they can spend it on American goods, putting it back into our own economy. We hope that they will pick the only logical answer, which is to spend the money on American goods, pumping it back into our economy.
4. The individual or business that has just sold a product to Americans will receive their U.S. money from the buyer. They will then have to take said money, and bring it to a foreign currency trader, or bank, who will take the U.S. money and give them their own currency in hopes that someone will want to come trade for American money in order to buy American goods.
5. People believe that buying American is best for our country because we are supporting our own businesses and economies. If we actually participated in this belief, however, we would be in a lot of trouble. This would greatly drive the competition down, taking away the incentive to improve. If we spend our money on other products, American companies know they must improve, or make some sort of change if they want to get any business. This causes their competitors to do the same, and a loop begins. Buying from the foreign company also puts the money back into the environment (as discussed above) but in more discrete ways. If we created a new law, the system would fall apart. There would be no competition, and the Americans would have no control over them.
1. Reason why the employment US manufacturing sector is decreasing but manufacturing output continues to rise is because of the new technological invention that humans have made that they do not need more people. As the employment goes down people and technology advances people are going to lose more jobs and would not be able to get job they want because robots will take over them.
ReplyDelete2. No, this is because the technology has developed so much that they do not need more people yet less people so that they could put more technology. People that had been cut would try to find other jobs that do not use any technology such as farming. Technology was developed in order to help people but in this case in my opinion it is hurting the people because it is making unemployment percent go higher
3. US dollars become useless in Saudi Arabia. Of course US dollars cannot be used in Saudi Arabia thus they have choices of buying America’s product with US money or send it to USA because they need to trade. Also money would not be able to be used because not only it is a different currency. Thus they would buy the US product and the money goes back to US to better change of successing Company and it is a benefit for US.
4. The individual or business will get the money from US and the product that was made was in US dollars then it would be sent it to them and turned into their currency. However the individual go to bank and turn the US dollar into their currency and they would spend and get the US dollars because they would want to buy US.
5. This is because people think that by buying their own product they can benefit their own. Also if there was a law that people are buying only American products then there would be no competition. Also after this there will be no foreign product and technology is not going to develop
1. Due to improvements in technology over time, machines are actually performing jobs formerly done by humans. This leads to humans losing jobs to machines, and thus, decreasing employment in the manufacturing sector. One's first impression might be that decreasing employment is a bad thing, however, due to the fact that machines are significantly more reliable than humans, an increased reliance on machines by the manufacturing sector actually leads to increased manufacturing output. Decreasing employment combined with the fact that manufacturing is declining as a percentage of overall economic activity (due to US economic growth elsewhere) leads to the uninformed illusion that manufacturing is declining.
ReplyDelete2. It is not surprising that employment in the manufacturing sector is declining in Japan and Germany, just as it is in the US. This can be simply attributed to improving technology taking the jobs of human labourers. If one of these displaced workers had to find a job elsewhere, it would be smart for them to search in the technology or health care industry, where employment is rising.
3. US dollars spent by Americans on Saudi Arabian oil will be immediately exchanged for currency that can be used in the Saudi Arabian economy. Saudi Arabia would be wise to spend the money on an American product such as those produced by Apple, IBM or Garmin. Additionally, an also wise alternative would be to invest the money in the US stock market, perhaps on a strong performing stock such as Berkshire Hathaway.
4. When US dollars are sent to a foreign country for a product, the money received by the company selling the product will be exchanged for currency that can be used in that country's economy. An individual or business in that country, if they were so inclined, could simply go to the same foreign currency trader and exchange an equivalent amount of money for aforementioned US dollars.
5. Many of the common population believes that "buying American" is supporting American businesses with funds. However, by purchasing inferior products, we are simply throwing our money away in the trash can that is an inferior corporation, when in reality the money would be better spent on a superior foreign product, which, in turn will be spent on deserving American company's product. If, for example, a new law provided that we could only buy American, American companies would get lazy with product improvement due to the absence of foreign competition. This would lead to consistent subsidizing of inferior products and a decrease in product quality over time.
1. Manufacturing employment has gone down due to technology increasing and making it possible to automate more processes and being more efficient with less people. The fact that we have lost jobs in the manufacturing sector causes people to believe that manufacturing is in a state of decline.
ReplyDelete2. No, I would not be surprised because Japan and Germany are also capable of automating manufacturing just like the US. People who lose jobs in manufacturing should get jobs in the service industry.
3. When the U.S. dollars get to Saudi Arabia the Arabian Oil Lord cannot spend in the Arabian economy so either he will have to take it to a money changer, or spend it on buying himself the new IPhone that comes out this fall and the money goes back to America.
4. Said individual will have to take the money to a money changer to get the money changed for whatever amount of their money the global market has deemed is worth a dollar.
5. Americans believe buying American is better because they look at how much money is owed to foreign countries with no perspective on it and decide that if they give their money to a foreign business they will be helping another country get a leg up on the US. If we could only buy US the standard of living would drop because we would not be able to obtain as many goods and services as we currently are capable and things would get more expensive. Places like Walmart which has loads of really cheap stuff imported mostly from China would take a hit and would have to sell things for significantly more money.
1. Especially in the turn of the 21st century, the competition in the manufacturing industry increases and certain traditional practices become more obsolete. Technology becomes more complex and capable of performing tasks faster, for the same quality, and for less money than the workman. This cycle of renovation has been present for centuries- as society progresses, older techniques are replaced by those that maximize product while minimizing cost and time. A well known example of this cycle is Henry Ford’s invention of the assembly line, which changed the auto industry and the workforce forever. Many people believe that manufacturing is in a state of decline because many of our everyday items are imported from other countries, such as China. Although many of these items are exported from countries such as China, the United States is still the major exporter of important products for the medical and transportation industry.
ReplyDelete2. No, I would not be surprised to hear this. The United States, Germany, and Japan are three of the world’s top exporters of products. Like the United States, technology is beginning to dominate the manufacturing industry, leading to a decrease in employment. The displaced workers must then find jobs in other fields such as the budding technology industry.
3. The U.S. dollars that are sent to Saudi Arabia to purchase oil are later to returned to the U.S. economy. The USD cannot be used in Saudi Arabia, and therefore must be spent on American goods, exchanged for the riyal, or transferred back to the United States.
4.In order to get access to the U.S. dollars, the foreign country must go through a foreign currency exchange in order to obtain their national currency.
5. Many people believe that “ Buying American” will benefit our country. However, “Buying American” actually benefits the company rather than the United States economy as a whole. It is more efficient to purchase certain consumer products from other countries. Not only will the quality of the product be at a higher standard, a higher amount of the product can be produced for less. Because of the international currency exchange cycle, the USD will actually be returned to the United States economy eventually.
1.The primary reason that employment in the U.S. manufacturing sector decreases over time is development of the technology makes the employer to get less workers. Technological development increases the output, but machines do all the labor. Even though we are producing more than ever before, most Americans think that manufacturing is in a "state of decline" because they see that almost all common products in the US are from China and think that the US produces nothing.
ReplyDelete2. I would not be surprised to know that manufacturing employment is also decreasing at the same rate in German and Japan as it is in the United States because machines and technology are more efficient than employing labor.
3. When the U.S. spends American currency on oil in Saudi Arabia, the money eventually finds its way back into the U.S. because the Saudi Arabians cannot use the U.S. dollar bill in their country. The Saudi Arabians could either throw away all of the U.S. dollars they receive or they could save it and use it to buy things from America.
4. The U.S. dollars are sent to the business that sold the product, and then the business exchanges the money with the foreign currency trader for their currency. The foreign currency trader sells the U.S. dollars to a different business or individual who wants to buy U.S. products.
5.Many Americans think that “Buying American” is best for our country because it helps the economy by preventing the loss of American jobs and incomes. If we could only buy American, we would be hurting the economy by subsidizing less efficient American products (as opposed to preferable foreign ones). We therefore would remove the incentive for the American company to perform better because there is no foreign competition for them to compete against. American firms might then in turn begin to be less inclined to improve, since they are getting the money either way.
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ReplyDelete1. An economist could determine whether the normal size of the national debt is too high through calculating whether or not the percentage of the nation’s GDP is too high. Even though it varies from nation to nation if there is a debt crisis then the economists would consider the debt too high.
ReplyDelete2. It is not super surprising to me that nations have higher debt then the US. Although media makes it seem like the US has the highest debt ever. I think that knowing that other nations have higher debts give the US hope that me can reduce the debt that we do have.
3. If China decided to stop lending money to the US, if would affect the US ability to spend. But could be troubling for them because the money they do loan eventually would be put back into their economy.
4. As long as the US Government continually refinances and taxes they could maintain their level of public debt without having to ever decrease it. The US borrows money to pay loans they have already taken, which maintains a constant level of debt.
5. Yes my parents understand the economic theory that the US never has to reduce our national debt level.
6. If I was president I would adjust the social security. I would take into effect the baby boomers because those people are now entering retirement, this is a problem because they are a big part of our government budget.