Content
@
0 reply
0 recast
0 reaction
July
@july
I do lament the destruction of manufacturing, or at the very least the lack of innovation and investment in manufacturing in the United States in the recent past. A lot of it has to do with because labor has become so expensive. There is a ofc - a future where robotics, and embodied AI helps with manufacturing and increased abundant production at lower costs (a story for another time); but the reality is it’s not going to happen immediately, or at least let’s say in the next 3-5 years. But I think one of the main reasons is businesses in general have prioritized gains (because of the way the public equities and returns work) in focusing on gutting manufacturing (i.e. business that can be done for cheaper somewhere else) overseas for the past 2~3 decades is because multiples on software, financial engineering and knowledge work in general have better returns investment wise, so these underlying businesses have been generally cut or just go unsupported or over regulated (or regulatory captured)
10 replies
17 recasts
127 reactions
Leo
@lsn
It’s the opportunity cost of manufacturing investment, yeah In theory, you might expect that manufacturing wages can be justified by the value of manufacturing labour, in that expert manufacturing could produce unique products that others could not But the US has little history in really incrementally high skilled manufacturing labour, and these wages in any event have been pushed up by the immense value created from technology companies, and this money flows throughout the economy raising the wage level everywhere
1 reply
0 recast
2 reactions
Leo
@lsn
…the logic here is that Tech wages go up Industries supporting tech see wages go up Everything else gets pulled up
0 reply
0 recast
2 reactions
