The Imperial Presidency

[MilkmanConspiracy]

Why Trump's vision to bring home all U.S. manufacturing is 'almost impossible'

tl;dr: Even with massive automation, it costs too much to make most things in North America. The example given: A pair of Nikes that list for $100 (and usually sell for $60-$75) would cost $400 if made in the USA from locally-sourced materials.

For another example, albeit an unusual one, a Librem 5 costs $799 USD. The Liberty Phone, same model made in the USA under a secure supply chain costs $1,999.00 USD. New Balance sells (Made in USA 990v4 - at least 70% American made) sneakers for $184.99. A pair of Red Wing Shoes Weekender Oxfords (Style 3606) that is made in the USA runs for $259.99.

Given that all I have mentioned are not exactly mass market products, I’m not sure how well that scales. Normally higher production drives prices down, but if the materials also have to come from the United States, that could seriously drive up costs if 340 million people need American made shoes. Even at the current prices, it’s unaffordable to a good chunk of the population. Wal-Marts website lists shoes for under $15, and I expect that is the price point much of the population is used to.

Even if it America becomes an industrial powerhouse once again, it won’t be like to good old days in terms of job creation. Things are automated, and factories don’t need men on turret lathes like they used to. (Although putting many inexperienced workers on lathe work is a great way to increase "chip" production , ha!) In many cases they just need a few skilled automation engineers for even greater volume. The work that can’t be easily automated is not something companies will want to pay for, yet it requires skill or dexterity.

I'm not a manufacturing guru though. Closest thing I did to that was a previous job running a strange tool crib and try to stop our users from maiming, poisoning, or irradiating themselves and others.