Comment by stackskipton
3 months ago
Sure because we decided to gut manufacturing in this country. It was deliberate decision made not by DoD following Federal Acquisition rules but by beancounters who didn't want to spend money on keeping manufacturing alive. Since we don't have civilian manufacturing base in this country and military does not want to buy a ton of artillery shells just for them to go idle, here we are.
Manufacturing in western countries was gutted by treasonous politicians bribed by corporations to do an end-run around the environmental laws, workplace regulations, and human rights that had been hard-won by the people over the previous 50-100 years, by allowing these abuses to continue elsewhere without even being required to pay commensurate tariffs or penalties.
Manufacturing in western countries was gutted by the price of labor (read: rising standard of living relative to global averages).
1. It's difficult to manufacture competitively when a local living wage is in the upper echelons of global wages.
2. It's often cheaper to manufacture something semi-manually (e.g. 80% automated) than invest in buying and maintaining full automation.
No, it was gutted by what I said it was gutted by. The price of labor I include in workplace regulations but I could have called it out on its own too.
If corporations could not have moved operations offshore to exploit workers and the environment in other countries for lower cost, then they would not have. They were permitted to.
Where the old "labor costs did killed it" canard really falls over is when you look at primary industry and things that physically can't be packed up and moved off shore in western countries. Mining, farming, forestry, fishing, things like that. Traditionally a lot of those industries have had high labor input costs too. They miraculously didn't all fall over like manufacturing though.
Labor costs are a cost, same as compliance with other workplace regulations and environmental laws of course. They are not the reason manufacturing was offshored though, they are the reason that corporations bribed treasonous politicians to allow this offshoring to occur with no penalty. As I said.
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The Chinese laborers working in BYD and foxconn factories have higher wages than their equivalents in Mexico and Vietnam building products sold for 3-5x as much in the US. The cheapest labor in the world is found in Africa and yet Western industrial manufacturing has largely ignored the continent. The price of labor isn't the most important factor here.
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US ammo for civilian use isn't magically much more expensive than in cheaper places around the globe. Could be many factors ie economies of scale but at the end it doesn't matter - price of labor isn't a deciding factor, definitely not when you have US military budget.