The Costs of Protecionism (user search)
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Author Topic: The Costs of Protecionism  (Read 672 times)
MODU
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« on: October 27, 2006, 07:00:56 AM »

Can we continue to be a superpower without manufacturing? I think the answer to both questions is no.


But we really haven't been a manufacturing nation for 30 years.  The bulk of our economy is in the service industry, and that has more applications on the international scene.  And even then, we outsource some of the lower-end service duties to developing nations since our population and infrastructure can handle even more advanced tasks.  The risk to that is if we specialize in only upper level service.  Just like investing, our economy needs a diverse portfolio of industries.  Fortunately, we can always make the items we need if our supplier cuts us off.  It's the luxuries which will hurt in the short term.  If I recall correctly, we no longer have a domestic TV producer any more.  They are all imported or owned by a foreign nation (for example).

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