An ex Photocircuits engineer says the gutting of US manufacturing has led to a huge shift in ownership of US assets, with dire consequences for all Americans.
“With only a very small manufacturing base left, there is a small need to make capital investments in these businesses. Capital investments are what drive productivity,” writes Jason Tillberg.
He’s preaching to the choir, no doubt, but I always find it interesting when folks support their with details. In this case, Tillberg points to the massive transfer of ownership of US assets to foreign entities — remember Ross Perot’s “giant sucking sound” metaphor? — as a real cost paid by Americans through its inability (unwillingness?) to compete in manufacturing.
I find his thesis a bit incomplete and scattered, but he makes an important observation on capital investment and the disincentives to invest in a shrinking manufacturing base.
(As an aside, Tillberg talks about his experiences at Photocircuits in another piece on productivity written a few years back.)