When we make products overseas, are we long-term weakening our businesses and our communities, and in fact strengthening the product’s country of origin? Today’s WSJ makes the point that foreign countries that produce the goods are the ones gaining high-tech jobs and therefore the high-flying lifestyles. As you may have heard, every day a new person becomes a millionaire in China. Can we say the same in America? Historically, businesses and economists approved the strategy of “innovate here, manufacturer there,” but recent trends have shown is this is likely a fallacy. A more accurate mantra may in fact be “innovate there, manufacture there, move there.” Apple claims it can’t make computers here because it doesn’t have the innovative manufacturing to do it. The Chinese continue to get richer and richer, while today’s American youth have a 70% chance of being poorer than their parent’s generation. Americans know where the money is, Jerry. China has a record number of Americans living in and working remotely with China. I think we’ve off shored way more than we’ve bargained for.
What do we need to? The authors suggest bring production back to the U.S. which will bring back the high paying jobs and customers to your shop. We may even get to start making more of what we all want domestically: new millionaires. They make great customers.