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 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. 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. 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. 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 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 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. 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.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. 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. 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. 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.
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 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. 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, 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 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 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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