It happened over a longer period obviously, and what happened is the US adopted a failed industrial policy that saw our core manufacturing base shipped to China for the benefit of Wall Street and the financial sector.
It happened over a longer period obviously, and what happened is the US adopted a failed industrial policy that saw our core manufacturing base shipped to China for the benefit of Wall Street and the financial sector.
Globalization wasn't a loss for all of America - the benefit of shipping manufacturing overseas was that the resulting imports were cheaper than producing domestically. After all if they weren't, people would've preferred to buy domestic. So it was a net win for the consumer via cheaper goods, but came at the expense of Detroit, Pittsburgh and other "rust belt" cities & communities.
We're still grappling with the consequences. We should've invested in transitioning those workers to comparable or better jobs but the ball got completely dropped on that.
It wasn’t a net win for the consumer. The consumer is now much worse off than before and our country is weaker.
It was just a mistake to allow ourselves to be ruled by the financial sector.
I thought that as well. But the benefits of cheaper goods when manufacturing is shift elsewhere comes at the cost if the future innovations that follow manufacturing. American businesses forget that happening to the British when we took over manufacturing for England. Now China and Mexico have innovations we lack because their engineering has access to the assembly lines and see where innovations need to happen.
If your purchasing power is cut in half because you lost your manufacturing job and had to replace it with running a cash register, but the cost of toys also dropped in half (but not things like food and housing, which doubled in price), are you actually better off?
No.
Average Americans are poorer now than they were before they could buy everything at Walmart. As long as housing continues to be a "Line must go up" investment, Americans will continue to become poorer as more and more of their income has to be directed to housing.
The price didn't even fall that much. One look at Temu and friends should disabuse you of the notion that we are actually getting things for "Cheap". Usually it just means product quality was drastically reduced thanks to millions spent on "value engineering", so that your new products don't last long enough to put you out of business.
Sure is great that GE can now reliably predict the lifespan of parts in their washing machines so they never make the mistake of gasp overspeccing a component so it lasts a lifetime!