General Discussion
In reply to the discussion: We romanticize manufacturing jobs when what we really miss are unions. [View all]AdHocSolver
(2,561 posts)When goods purchased within a country are manufactured in that country, the money spent to purchase those goods stays within that country and circulates within that country's economy providing the funds to create more jobs.
When most of the goods purchased in a country are imported from other countries, the money spent to purchase those goods leaves the local economy, and is not available to circulate within the local economy to pay the workers of the local economy.
The unions have no bargaining power when there are no jobs, and the money to sustain local jobs has left the country.
The main power of the unions rested in the fact that they could stop production and cause a company to lose sales and profits. When most products are manufactured elsewhere and imported, what bargaining power does a union have with manufacturers?
Moreover, one of the arguments for agreeing to sign the the TPP so-called "trade agreement" is that "there is a potential for "exponential growth" of U.S. exports into the TPP markets."
However, if the Chinese can manufacture goods in there own country more cheaply than the U.S. can manufacture them, why would the Chinese buy goods from the U.S. that they could make themselves at a lower cost?