I think the “near-shoring” bill introduced by Democratic Representative Ablbio Sires and Republican Representative Mark Green is a step in the right direction:
WASHINGTON–Today, Rep. Mark Green, Ranking Member of the Subcommittee on the Western Hemisphere, Civilian Security, Migration and International Economic Policy, and Rep. Albio Sires, Chair of the Subcommittee on the Western Hemisphere, Civilian Security, Migration, and International Economic Policy, introduced the Western Hemisphere Nearshoring Act.
Rep. Green said, “The Western Hemisphere Nearshoring Act is a threefold win. First, it makes the United States less dependent on Chinese manufacturing. Second, it is a win for Latin America because it will provide more jobs and economic growth, without a penny of taxpayer dollars. Thirdly, as opportunities increase in Latin America, the Nearshoring of manufacturing will decrease migration to the US Southern Border. A separate bill filed previously addresses moving manufacturing back to the United States.â€
Rep. Sires said, “This bipartisan legislation is a critical part of our strategy to compete with China. By incentivizing producers to relocate to Latin America and the Caribbean, we can contain China’s influence while creating economic opportunity, addressing the root causes that drive migration to the U.S. I’m proud to work alongside Congressman Green to build a more prosperous and resilient Western Hemisphere.”
on three different grounds. First, it could, at least on the margins, bring more production to this hemisphere where it would be available for greater review and oversight. Second, if, as I believe, much of the emigration from Mexico, Guatemala, Salvador, etc. is economic migration it would reduce the “push” factors impelling people to leave those countries. And, finally, it is bipartisan. I hope it has some prospect of passage. It will be particularly tough in an election year and it might be impossible in the next Congress.
This is a bill for financiers and company bosses. It will not help American workers or American manufacturing. Both jobs and factories will continue to move out of the US.
PS. Not one country in Latin America supports US sanctions against Russia, not even Mexico. No one in Africa, the Middle East or Asia does, either, except for American military allies, and not even all of them do.
PPS. The ruble-dollar exchange rate flirted with R65 to $1 earlier today and later fell back to a little under R67 to $1. The ruble-euro rate is about 71. Sanctions were supposed to wreck the Russian economy, but it is the US and EU economies that are threatened.
PPPS. It Russia does defeat Ukraine (likely), and Ukraine is partitioned among its neighbors (possible), what is the ruble-dollar exchange rate? 50:1?
“This is a bill for financiers and company bosses. ”
Bobby, Bobby, Bobby. First, just a point of order. Dave’s first citation dealt with the ability to influence icky processes, making them less icky. Second, it is undeniable that illegal immigration in the long term has to be addressed by creating economic opportunity in these peoples home countries.
Moving on, financiers can and will finance productive capacity in the US, China, S America or anywhere. These days, chasing around the globe where the manufacturing footprint resides is a non-issue for capital raisers. You seem to miss that. The key is to have a country that makes it attractive for those making manufacturing footprint decisions to elect Door No. 1: the US. Most Democrat politicians can’t get that through their thick skulls; or, alternatively, they simply see political gain in being the worst of assholes, exploiting class envy and worker anger. Zero sum game BS.
If I recall correctly, you are or were a CE prof at THE Ohio State University. So you had me at hello. But the technical people need the financial people need the marketing people need the sales people need the IT people, need the operations people…………
I’ve spent the last 30 years of my life trying to make vibrant the extant manufacturing base here in the US, to the degree a rather small private equity shop can. Its a daunting task sometimes. But you have your satisfying wins. Railing against financiers is a feel good thing, but pure nonsense. I’m not a financier, but I use finance.
I might humbly suggest you reconsider your biases.
@Drew
… I’m not a financier, but I use finance.
I have an issue with the financial system being used to finance unproductive investments, and usually, financial investments in financial products are not productive. Leveraging and derivatives are not evil in-and-of themselves, but they cause instability in the system.
Entropy and diminishing returns apply to the financial system as well as the rules regulating it. At some point, too many people are trying to exploit the rules, and more rules exacerbate the problem.
The “cut the cord” movement is similar. First, cable services subsidize internet services, and as cable revenue declines, internet prices will need to increase to compensate. Secondly, Ã la carte is always more expensive than a package because more popular channels subsidize less popular channels. Now, Youtube has a package of streaming services. Basically, cable for cord-cutters.
Frankly, I have grown weary of these topics, and I rarely press the Submit button. You have the ability to see where this is headed, but you stubbornly refuse to offer any solutions. Our progressive friends offer many solutions, but they have little understanding of the systems.
Anyway, play another round of golf before the course becomes a homeless camp.
Drew, you and I will have to disagree. But here is another viewpoint,
https://viableopposition.blogspot.com/2022/05/americas-low-wage-crisis.html#comment-form
Yes, I worked at tOSU for 35 years, 1972 to 2007. Saw Archie Griffin’s first play from scrimmage.
I see the facts reported in that post in a somewhat different light, bob. IMO it reflects two things:
1. Too loose and, indeed, too reliably loose a labor market
2. Too much activity in areas in which we should not be engaging at all or, at least, should be automating more highly
If we genuinely want real wages to rise, we need to maintain a tighter labor market in the U. S. That means controlling and changing the composition of immigration to the U. S. We also need to change the risk profile of investment in the domestic economy but that’s a subject on which Drew can comment more intelligently than I.