Weekly Opinion Editorial
CAPITALISM REQUIRES
PARTICIPATION!
by Steve Fair
The Wall Street
Journal reports American companies are on pace to return nearly 350,000
jobs to the U.S. in 2022. If that
happens, it would be highest number on record since 2010. Taking manufacturing and production out of
the country had been a trend for over thirty years until President Trump took
office in 2016. Trump made keeping domestic
manufacturing and production here a priority.
About 450,000 new manufacturing jobs were added during Trump’s term in
office. During President Obama’s eight
years in the White House, the U.S. lost 192,000 manufacturing jobs.
When COVID
hit, American companies had to rethink their ‘out of the country’ strategy as
labor shortages in foreign countries coupled with high commodity prices and logistics
challenges made price a secondary issue. Russia’s invasion of the Ukraine disrupted
grain markets and the conflict between China
and Taiwan has disturbed the microchip market.
That has resulted in three major microchip manufacturers announcing they
are bringing their production back to the U.S.
A constant, reliable, and dependable source of supply has become more
important than price to American manufacturers and processors. That should be
the goal for the American consumer. Three observations:
First, a
buy American policy is not just patriotic- it’s sensible. When companies made the decision to have
their products or components made out of the country, American consumers eagerly
accepted the products because they were cheaper.
50% of American
consumers acknowledge price is the main decision factor when they buy something. Bottom line- if they can save money, they
will buy the lower priced item. Two
thirds of Americans polled last year claim they will pay more for products made
in America, but they don’t follow up by doing it. Imported products often have higher market
share than their domestic competition.
Second, globalization
contributed to the disruption in the supply chain. Since COVID-19, labor issues, raw material
shortages, and high fuel costs are not just in the U.S., they are across the
globe. Every country is facing historic
price increases and inflation. Manufacturers
across the world have high demand and lower productivity than pre-pandemic. Consumers are adjusting to the new normal-
delays in getting consumer goods, and service in a timely way.
How did
this happen? Short sighted companies,
greedy labor unions, and clueless politicians contributed to the expansion of
globalization. Those who called for an
America First policy were attacked as isolationists and called non-progressive and too traditional.
Third, capitalism
requires participation and less are choosing to engage. In the capitalist economic system, individual
initiative is rewarded. Unlike socialism
or communism, where individuality is downplayed, capitalism rewards those who
work harder than their counterparts. In capitalism,
when fewer workers choose to participate in the workforce, the demand for those
who will work increases and wages go up.
America has a shortage of people who will work. Help wanted signs are in every business. Anyone who really wants a job can get one and
many older Americans are delaying retirement and continue to work.
The number
of Americans over age 55 who are in the labor force is projected to be over 42
million by 2026- over one quarter of all those working. Younger Americans are not entering the workforce. The reason? The government will pay them more
to sit on their duff than to work. Who
can blame them? It’s human nature to take
the path of least resistance.
If trends
continue, America’s capitalism economic system will fail. The risktakers that built the U.S., who lived
the American Dream and made their fortunes must have modern day counterparts to
step up and roll the dice. America needs young passionate, hardworking, adventure
seekers. Apply anywhere there is a help
wanted sign.
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