Saturday, October 7, 2023

Manufacturing Returning Back to the U.S.: Immigration, Human Capital and Technology

Manufacturing is returning back to the U.S. and that is a good thing. Wages should hopefully rise to meet the new realities of the market. According to the article below it appears that there are partner firms also participating in reshoring investments so it is a type of pack investing. 

As manufacturing returns and employment numbers stay strong we will need to 1.) increase the pool of labor or 2.) increase the productivity of labor. 

Increasing the pool could take the route of encouraging current illegal immigrants to come forward, get registered into special company sponsored training programs and get them to work not only in a taxable job that helps the economy but also on a path to some type of visa. 

Maybe a trial work visa could lead to citizenship. i.e. tax revenue, documentation and reduce the shadow market until a policy can be decided by both Democrats and Republicans (Hopefully bi-partisan)

While this might be practical for those who are already here, it is unlikely to be politically practical and we don't want to encourage more illegal immigration without vetting people through proper channels. Thus we might need to wait until the border is secure before implementing such a program. (Just a thought...feel free to discard.)

The other thing that of course is necessary is to raise the value of our current human capital through training/education to increase productivity and in turn match that with new technology to further improve available skills to these emerging industries.

Human capital and technology is likely the primary method of solving this problem but the other method might come in handy down the road as we ponder at some point what to do with those immigrants that are currently here? I wonder what everyone comes up with. Let us wait and see.

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