On Sunday there was an article in the NYT that I found to be quite upsetting. It was detailing how in the Bay area of San Francisco, the city had ordered a replacement bridge from China to be delivered and installed by our union workers once it arrived on our soil during the summer. Moreover, in NYC there were orders out to China for subway and bridges under way to be delivered and similarly to be installed by our union workers once delivered onto our soil. These orders were touted to have saved millions of dollars by going through Chinese manufactures, but I argue that we didn’t save we actually lost money by lost tax revenues from the workers that could have been hired and the increased consumption those additional workers could have generated. I see these off shore manufacturing deals as fundamentally short sighted economic policies, the only logic that I can see is that it was basically a political call. Since China holds quite a bit of our debt in terms of trade imbalance these orders could have cut down our debt somewhat but it still costs us more internally.
Read the Article at HuffingtonPost