Thursday, April 5, 2012

The Return of Manufacturing in America

Tyler Cowen, who brought us the Great Stagnation, offers three reasons that are likely to combine to make the United States an export powerhouse in the future:
First, artificial intelligence and computing power will revolutionize production in one sector after another, as it is doing now, both with things like Watson and Amazon's robots; basically, the more the world relies on smart machines, the more domestic wage rates become irrelevant.

Second, the  the recent discoveries of very large shale oil and natural gas deposits in the United States will decrease costs and lessen dependence on supplies from dodgy countries.

Finally, demand from rapidly developing countries will boost American exports.

Interesting throughout. One wonders if there will be enough domestic jobs in health care and education, along with feeding the dogs trained to keep the dog feeders away from the machines.

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