As the cost of doing business in China rises, U.S. manufacturing could be on the verge of a renaissance. But that won't necessarily mean a flood of blue-collar jobs.
In the past year, the conversation about U.S. manufacturing has undergone a quiet but remarkable change. Gone is much of the doom and gloom about the death of American factories. Instead, many now seem certain that industry is due for a comeback here at home.
The latest murmurs of good news came last week, when Cook Associates released the results of survey finding that 85% of manufacturing executives expected at least some kinds of factory work to return to the U.S. from overseas. The firm polled roughly 3,000 executives at small and mid-size manufacturers, about two-thirds of whom said their companies were currently manufacturing or outsourcing work abroad.
What could drive the revival? Rising wages in China, to start. Workers there are still cheap -- in the country's southern manufacturing hub, they earn just 75 cents an hour -- but they're not as cheap as they used to be. According to the American Institute for Economic Research, the average hourly wage in China doubled between 2002 and 2008. The country's currency has also risen gradually since 2005, from about 12 cents per yuan up to roughly 15 cents.
Pile on the logistical headaches that come from coordinating operations across the Pacific, as well as high fuel costs that make shipping more expensive, and all this has some business people considering a move back to the states. For some kinds of work, at least. In August, Boston Consulting Group released a report predicting a global realignment in the manufacturing sector. By 2015, the firm believes that many kinds of production will be just as cheap in the U.S. as in China, especially in low volume, heavy goods where labor only makes up a small part of the cost equation. Those include products like car parts, construction equipment, and appliances. Not everything is moving home. Textile mills in South Carolina? Don't hold your breath.
Factories are about to disappear from Shenzen. They'll still be there, churning out iPods, TVs, and pretty much whatever else you can imagine. But they'll cater more to China's domestic market, which is expected to grow exponentially in the coming years. Meanwhile, factories would move back to the United States to build products for sale in North America.
So we could one day be seeing more made in the USA labels. But how many more American workers will be stamping them on? That's where things become tricky. One of the great misconceptions about America's manufacturing decline is that the country no longer builds things. That's simply not true. As the BCG report notes, the value of U.S. output increased by a third between 1997 and 2008, a period when the economy shed millions of manufacturing jobs. The culprit: productivity.
U.S. factories simply need workers than in the past. We've become exceptionally good at making products using very little labor and lots of machines. Think of that GM Superbowl ad with the oddly sympathetic robot arm that starts moping after it drops a bolt. That sulking hunk of metal is the real face of most U.S. factories.
Of course, someone has to operate all those robots. The increasing importance of technology on the factory floor has turned manufacturing into a high skill field, as the president of the Federal Reserve Bank of Cleveland noted in a recent speech. As manufacturers have laid off blue collar workers, they've been hiring more college grads. That means, even if BCG is right, and a return of U.S. factories creates 2 to 3 million domestic jobs, it won't be a cure-all for the problems that now afflict the labor market. Building things takes a degree. And the current jobs crisis has, more than anything, been about the plight of the undereducated male -- the kind of worker who increased productivity made redundant in the first place.
The return of more manufacturing would be a great boon for the U.S. But it doesn't mean yesterday's factory worker will get his job back.
Trump's election has reopened questions that have long seemed settled in America—including the acceptability of open discrimination against minority groups.
When Stephen Bannon called his website, Breitbart, the “platform for the alt-right” this summer, he was referring to a movement that promotes white nationalism and argues that the strength of the United States is tied to its ethnic European roots. Its members mostly stick to trolling online, but much of what they do isn’t original or new: Their taunts often involve vicious anti-Semitism. They make it clear that Jews are not included in their vision of a perfect, white, ethno-state.
On the opposite side of American politics, many progressive groups are preparing to mount a rebellion against Donald Trump. They see solidarity among racial minorities as their goal, and largely blame Trump’s election on racism and white supremacy. Three-quarters of American Jews voted against Trump, and many support this progressive vision. Some members of these groups, though, have singled out particular Jews for their collusion with oppressive power—criticisms which range from inflammatory condemnations of Israel to full-on conspiracies about global Jewish media and banking cabals.
In 12 of 16 past cases in which a rising power has confronted a ruling power, the result has been bloodshed.
When Barack Obama meets this week with Xi Jinping during the Chinese president’s first state visit to America, one item probably won’t be on their agenda: the possibility that the United States and China could find themselves at war in the next decade. In policy circles, this appears as unlikely as it would be unwise.
And yet 100 years on, World War I offers a sobering reminder of man’s capacity for folly. When we say that war is “inconceivable,” is this a statement about what is possible in the world—or only about what our limited minds can conceive? In 1914, few could imagine slaughter on a scale that demanded a new category: world war. When war ended four years later, Europe lay in ruins: the kaiser gone, the Austro-Hungarian Empire dissolved, the Russian tsar overthrown by the Bolsheviks, France bled for a generation, and England shorn of its youth and treasure. A millennium in which Europe had been the political center of the world came to a crashing halt.
A child psychologist argues punishment is a waste of time when trying to eliminate problem behavior. Try this instead.
Say you have a problem child. If it’s a toddler, maybe he smacks his siblings. Or she refuses to put on her shoes as the clock ticks down to your morning meeting at work. If it’s a teenager, maybe he peppers you with obscenities during your all-too-frequent arguments. The answer is to punish them, right?
Not so, says Alan Kazdin, director of the Yale Parenting Center. Punishment might make you feel better, but it won’t change the kid’s behavior. Instead, he advocates for a radical technique in which parents positively reinforce the behavior they do want to see until the negative behavior eventually goes away.
As I was reporting my recent series about child abuse, I came to realize that parents fall roughly into three categories. There’s a small number who seem intuitively to do everything perfectly: Moms and dads with chore charts that actually work and snack-sized bags of organic baby carrots at the ready. There’s an even smaller number who are horrifically abusive to their kids. But the biggest chunk by far are parents in the middle. They’re far from abusive, but they aren’t super-parents, either. They’re busy and stressed, so they’re too lenient one day and too harsh the next. They have outdated or no knowledge of child psychology, and they’re scrambling to figure it all out.
Neuroscientist James Fallon discovered through his work that he has the brain of a psychopath, and subsequently learned a lot about the role of genes in personality and how his brain affects his life.
In 2005, James Fallon's life started to resemble the plot of a well-honed joke or big-screen thriller: A neuroscientist is working in his laboratory one day when he thinks he has stumbled upon a big mistake. He is researching Alzheimer's and using his healthy family members' brain scans as a control, while simultaneously reviewing the fMRIs of murderous psychopaths for a side project. It appears, though, that one of the killers' scans has been shuffled into the wrong batch.
The scans are anonymously labeled, so the researcher has a technician break the code to identify the individual in his family, and place his or her scan in its proper place. When he sees the results, however, Fallon immediately orders the technician to double check the code. But no mistake has been made: The brain scan that mirrors those of the psychopaths is his own.
A professor of cognitive science argues that the world is nothing like the one we experience through our senses.
As we go about our daily lives, we tend to assume that our perceptions—sights, sounds, textures, tastes—are an accurate portrayal of the real world. Sure, when we stop and think about it—or when we find ourselves fooled by a perceptual illusion—we realize with a jolt that what we perceive is never the world directly, but rather our brain’s best guess at what that world is like, a kind of internal simulation of an external reality. Still, we bank on the fact that our simulation is a reasonably decent one. If it wasn’t, wouldn’t evolution have weeded us out by now? The true reality might be forever beyond our reach, but surely our senses give us at least an inkling of what it’s really like.
Life in Ohio's proud but economically abandoned small towns
Just over a decade ago, Matt Eich started photographing rural Ohio. Largely inhabited by what is now known as the “Forgotten Class” of white, blue-collar workers, Eich found himself drawn to the proud but economically abandoned small towns of Appalachia. Thanks to grants from the Economic Hardship Reporting Project and Getty Images, Eich was able to capture the family life, drug abuse, poverty, and listlessness of these communities. “Long before Trump was a player on the political scene, long before he was a Republican, these people existed and these problems existed,” Eich said. His new book, Carry Me Ohio, published by Sturm and Drang, is a collection of these images and the first of four books he plans to publish as part of The Invisible Yoke, a photographic meditation on the American condition. Even with a deep knowledge of the region, Eich was unprepared for the fury and energy that surrounded the election this year. “The anger is overpowering,” he said. “I knew what was going on, and I’m still surprised. I should have listened to the pictures.”
The Republican presidential candidate is not a Fascist, but his campaign bears notable similarities to the reign of Italian dictator Benito Mussolini.
Fascism has been back in the news with Donald Trump’s candidacy for the American presidency. His populist claim to speak for the white everyman, along with his menacing leadership style, have brought forth comparisons among this “homegrown authoritarian,” as President Barack Obama has called Trump, and foreign strongmen.
Trump is not a Fascist. He does not aim to establish a one-party state. Yet he has created a one-man-led political movement that does not map onto traditional U.S. party structures or behave in traditional ways. This is how Fascism began as well.
A century before Trump, Benito Mussolini burst onto the Italian political scene, confounding the country’s political establishment with his unorthodox doctrine and tactics and his outsized personality. Mussolini’s rise offers lessons for understanding the Trump phenomenon—and why he was able to disarm much of the American political class.
President-elect Donald Trump has committed a sharp breach of protocol—one that underscores just how weird some important protocols are.
Updated on December 2 at 7:49 p.m.
It’s hardly remembered now, having been overshadowed a few months later on September 11, but the George W. Bush administration’s first foreign-policy crisis came in the South China Sea. On April 1, 2001, a U.S. Navy surveillance plane collided with a Chinese jet near Hainan Island. The pilot of the Chinese jet was killed, and the American plane was forced to land and its crew was held hostage for 11 days, until a diplomatic agreement was worked out. Sino-American relations remained tense for some time.
Unlike Bush, Donald Trump didn’t need to wait to be inaugurated to set off a crisis in the relationship. He managed that on Friday, with a phone call with the president of Taiwan, Tsai Ing-wen. It’s a sharp breach with protocol, but it’s also just the sort that underscores how weird and incomprehensible some important protocols are.
Neither the Islamic State nor al-Qaeda would be where they are today without Abu Abdullah al-Muhajir, who was recently killed in an American airstrike.
Last year, the Islamic State released a training video, one of a multipart series shot in Iraq. With its scenes of foot drills, target practice, and karate chops, it would have been entirely unremarkable were it not for a short classroom scene, in which an instructor walks viewers through the ideological curriculum forced upon new recruits to the ISIS cause. As he’s shown reeling off a list of some key topics in jihadist jurisprudence, one can glimpse a thick volume resting atop each of the 20 or so schoolroom desks—a manuscript that, while few would recognize it outside of jihadist circles, is instrumental to ISIS as a theological playbook that is used to justify the group’s most abhorrent acts.
A few weeks ago, I was trying to call Cuba. I got an error message—which, okay, international telephone codes are long and my fingers are clumsy—but the phone oddly started dialing again before I could hang up. A voice answered. It had a British accent and it was reading: “...the moon was shining brightly. The Martians had taken away the excavating-machine…”
Apparently, I had somehow called into an audiobook of The War of the Worlds. Suspicious of my clumsy fingers, I double-checked the number. It was correct (weird), but I tried the number again, figuring that at worst, I’d learn what happened after the Martians took away the excavating machine. This time, I got the initial error message and the call disconnected. No Martians.