Either a consumer economy or manufacturer economy

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Ive heard many times from smart people that a countries economy is either a manufacturing economy or a consumer economy and cant be both. My question is how come in the 1950s it seems America was both manufacturer and consumer economies. We manufactured most of our stuff and also consumed it and the economy was incredible. Only one person per household had to work and houses and cars were cheap.

Also if this economical principle is correct does that mean China will become consumers as well and manufacture somewhere else?

Again: how was America a manufacturer/consumer economy in the 1950s?

And: will china stop manufacturing

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Comments ( 6 )
  • olderdude-xx
    3 years ago

    It can be both, as you point out.

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    • Anonymous Post Author
      3 years ago

      People point out that once a country becomes wealthy enough people expect higher wages and it becomes more expensive to manufacture. I dont understand how this works because you also have to pay to ship things back from China which is alot. And Chinese wages are also rising. So why cant America get back to manufacturing its own products again? It worked in the 50s.

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      • olderdude-xx
        3 years ago

        For many things its not the difference in wages as it is the difference in the cost of employee safety and environmental regulations.

        It can cost $millions (and up to a 1/4 $Billion for a coal power plant) to install proper pollution control equipment to meet western standards in the USA or Europe.

        They don't install any in many third world counties.

        Safety equipment and processes to protect employees can cost far more than hourly wages for certain jobs in the western world.

        I live in on the edge of one of the more intensive foundry areas in the USA (and have worked in one as well). Moltent metal pots are now handled by automatic equipment and employees anywhere near them wear all kinds of protective equipment.

        In China and many 3rd world countries people are manually handling molten pots of metal and are barefoot (or in simple sandals)on a dirt floor. If they spill the metal on themselves or their workmates... they are just shoved out the door (perhaps taken to a hospital or not) and a replacement worker is hired from the line in front of the foundry.

        The reason so many American Companies built factories in Mexico was to get away from the cost of environmental and employee safety cost.

        If it was just wages, many of our old manufacturing jobs would still be here. Automated equipment and processes have reduced the manual labor cost per item to less than shipping from outside the country.

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        • Anonymous Post Author
          3 years ago

          Hmm interesting

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  • momgetthecamera
    3 years ago

    You want it to be both, don't you.
    Anyway globalism happens when countries don't manufacture their own stuff, sucks for the environment and can lead to tyranny due to countries becoming plutocracies

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  • [Old Memory]
    3 years ago

    Yes, it can be both.

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