> was it the unions or executives that decided to offshore manufacturing?
Neither. It was consumers, who prefer lower prices.
> why are executives now (successfully) lobbying for protectionism against Chinese manufacturers?
Because they were fools who thought they could offshore the factory work but not the management work.
> If chinese goods could be ported as easily and cheaply into America and American labor was ported to China
This is literally what has already happened.
The actual solution is for the US to do something about high domestic costs, especially housing and medicine, which are the things keeping US workers from being globally competitive.
>> was it the unions or executives that decided to offshore manufacturing?
>Neither. It was consumers, who prefer lower prices.
Right, because every executive who pursued offshore manufacturing was thinking, "gosh, how can I deliver even lower prices and better value to my customers?", and not "OK, we've shown the market will pay $X for product Y, how can I cut my costs and free up more money for bonuses and cocaine?"
Graphs of price indices (aside from a few sectors such as electronics where it was the core technology that improved, not labor efficiency) and wages over the last 50 years clearly show that the bulk of any offshoring savings were not passed along to consumers or front-line workers.
> Right, because every executive who pursued offshore manufacturing was thinking, "gosh, how can I deliver even lower prices and better value to my customers?", and not "OK, we've shown the market will pay $X for product Y, how can I cut my costs and free up more money for bonuses and cocaine?"
Suppose it used to cost you $1 to make something in the US that you had been selling for $1.50. The cost of domestic real estate and other things goes up, so now to make it in the US it costs you $1.60. If you sell for $1.50 you're losing money and to have your previous gross margin percentage you'd have to sell for $2.40. Meanwhile it still costs $1 to make it in China and one of your competitors is doing that and still selling it for $1.50.
Your options are a) don't raise prices, lose $0.10/unit and go out of business, b) raise prices, lose all of your sales to the company who still charges the old price and go out of business, or c) offshore manufacturing.
The only way out of this is to get the domestic costs back down, which is a matter of changing the government policy over zoning rules etc.
> Graphs of price indices (aside from a few sectors such as electronics where it was the core technology that improved, not labor efficiency) and wages over the last 50 years clearly show that the bulk of any offshoring savings were not passed along to consumers or front-line workers.
Are these graphs being adjusted for the increasing cost of things like domestic real estate having to be incorporated into the prices of everything? Even if you make it in another country you still have to pay for a domestic warehouse or retail store.
Neither. It was consumers, who prefer lower prices.
> why are executives now (successfully) lobbying for protectionism against Chinese manufacturers?
Because they were fools who thought they could offshore the factory work but not the management work.
> If chinese goods could be ported as easily and cheaply into America and American labor was ported to China
This is literally what has already happened.
The actual solution is for the US to do something about high domestic costs, especially housing and medicine, which are the things keeping US workers from being globally competitive.