The only American who won't acknowledge this Administration's failed economic policies is Joe Biden. "Shrink-flation' is the least of our worries compared to rising rents and stagnant wages, but it is an undeniable indicator of how bad our inflation has gotten. I have $100k that i like to invest in a non-retirement account, any advice on that?

Allowing corporations to export jobs to third world countries, while they widen their profit margins and evade duty on effectively imported parts while evading taxes, is the biggest problem we have, right after lobbying.

That guy who said politicians are ill equipped to pick winners and losers in the "real economy" is part of the group of geniuses who created the crisis of 2008. They picked the winners and it was themselves.

The big problem with a market-based solution is that the market will always take a solution based on short-term thinking. That's because companies have to answer to their shareholders who do not think long-term. It's this long-term thinking where government policy can play a big role. A purely market-based economy can't respond to things like climate change or changing global politics. This has to come from a source not handcuffed by next quarter's bottom line.

The US needs to stop selling going to college/university as the only next step after high school and include skill trades/vocational instruction in the discussion to combat the trained worker shortage. Until the national, State, and local unemployment rate approaches 0.01% there is no labor shortage in the country.

YES! In a week we will have "Manufacturing Day" which allows our high school students and educators better understand the amazing opportunities in today's high tech, innovative, on-shoring manufacturing, which involves a LOT more than just assembly.

If the market is allowed to be entirely free, a lot of undesirable things begin to happen. I'm glad we're seeing this, a factory job was once viewed as a good lifetime thing and anybody could get

Ironically, the insane costs of college will probably make manufacturing more attractive to younger generations now.

Same with the Ship building industry,during the 80's more than 50 shipyard are operating and manufactiring for both commercial & navy ships,but today only 12. I hope the government will address this issue as a national security.

Learned these lessons in AP Govt and AP Econ in high school. A pure free market has blind spots. A pure command economy also has blind spots. The trick is a balanced approach, a well regulated market economy with strategic incentives

The US has labor shortage of skilled workers. I'm so SHOCKED!!!! If only US companies are willing to hire unskilled workers and train them. In 2021, PBS reported "One in 300 American workers participates in programs in which employers pay them while they learn.", and less than 1/3 of US workforce receive formal job training.

What is the average pay of manufacturing jobs? They keep saying good wages, but what is a “good” wage?

Manufacturing is how to keep wealth in the country. It's the foundation of prosperity.

Although the economy is too complex to understand, understanding the needs of the people is quite simple.

Companies should give training to young or inexperienced people in the manufacturing sector (like 6-month or 1-year paid internship programs). If these companies are concerned about retaining the trained workforce, they should go for a 2-year employment bond before the training starts.

The more accurate statement about "labor Shortages" in most sectors would be people are tired of working for below poverty level wages. The plandemic just made that issue more pronounced. The cure for the dilemma is 3 fold. One, pay better. Two, train people well for the work you want them to do. Three, get rid of the toxic middle managers many places seem to employ.

The US went from 38% manufacturing job per total non-farm payroll in 1945 almost linearly to 15% at Peak Japan (1980's) to 8% today. Report back when it reaches 10%. When it reaches 15% again, you might be able to claim re-industrialisation.

The Cato institute is a conservative "think tank". While he talks about politicians and bureaucrats being ill suited to making economic decisions, he leaves out the "wealth individuals, sovereign wealth funds and the private capital industry are ill suited to taking into account the actual well-being of middle- and lower-class individuals as they only care about maximizing short term profits". "The Market" is not a magical and benign force, no matter what the Build It All In China advocates have been saying for years. Also, when we spend money inside the US, it is still here. If I pay my neighbor to do something, then they pay another neighbor, and so on .... but if I buy something from China, the money is gone from my community.

The labor shortage is more about wanting to pay less pay. Most of the people applying for the corporate work visa are locked in at home country prices while American born workers are looking for a living wage.

I hope this trend continues. I'll definitely be a plant/engineering manager by the time I'm 40 at this rate. I highly recommend anybody interested in manufacturing from an engineering/business perspective to read "The Goal: A Process of Ongoing Improvement" by Eliyahu M. Goldratt.

We don’t have a free market. We have been subsidizing oil, gas, agriculture among others for years. Large companies buy up small innovative companies to thwart technological change and reduce competition against their own products.

There isn't a global free market, China isn't free. Free market within the US, I think it's good to use our financial power to bring industry back to the US. As they say it is critical to our national security.

Why are they concerned about the government playing favorites in the “free” market as if they don’t already do that? Lobbying is exactly that, the government picking winners. Until the government doesn’t take bribes I mean lobbying money there is no real free market in this country.

The problem is that these acts will not change the economics that caused these industries to offshore in the first place. What's to keep this trend from reversing when it is no longer subsidized by the government?

Here is a counterpoint to the guy who believes "the market will figure it out". Take the US nuclear power industry as an example. Back in the 1970s those plants were very expensive relative to new coal fired powerplants. But look at how much of a better value those plants have turned out to be per kilowatt hour of electricity next to the coal plant polluting and needing millions of dollars in fuel over that time period.

What are the dangers of government playing favorites in a free market? Isn't that precisely what happened during and shortly after WWII? Isn't such industrial policy the reason for establishing the traditional middle class? The free market is only designed to exploit labor and resources to maximize shareholder wealth. The government - a well-run government, that is - is the cultivator of a high-functioning economy.

Since the purpose of the government is by definition "for the people ", the government should be promoting manufacturing in the US with industrial policy. The concept that the whole goal should be lowering costs is false. The concept should be to employ more Americans in well-paying jobs. That directly applies to increasing the societal health and welfare. Pretending that the issue is too complex for us to understand is specious.

Manufacturing is a critical skill set - More of it needs to come back to US and EU

Politicians ALWAYS "play favorites", if you donate enough or lobby enough with the "freebees"...

Creating wealth and financial freedom isn't as tough as many people believe. Building wealth and remaining financially stable indefinitely is a lot easier with the appropriate information. Participating in financial programs and products is the only true approach to make a high income and remain affluent indefinitely...

Exactly, we need to let more of these highly skilled and smart immigrants come here legally and make the barriers not so crazy high. It's so dumb, we'd rather force all this great knowledge to other places than welcome it here

0:01: 🏭 The number of manufacturing jobs in the US has decreased by nearly 36% since 1979, but the government is implementing industrial policies to bring manufacturers back. 4:37: 💰 The Chips and Science Act of 2022 has attracted over $210 billion in private investments to boost America's competitiveness in semiconductors. 7:55: 🏭 Total construction spending in the manufacturing sector has increased by over 106% since November 2021, indicating a positive trend in the US market. Recap by Tammy AI

In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.

Sometimes I think these economists are on the Chinese government payroll 🤦🏻‍♂️

Why ? Because somebody finally realised that building up your strategic rival is bad for American national security . I wish they realised that 30 years ago and restrained their greed

America needs more people starting their own businesses and also doing well.

I would say that the market is ill suited to determine what is best for the people, not the other way around.

Extremely complex and expensive manufacturing (semi-conductors) seems to be making a comeback but don't rule out the US continuing to outsource it's cheaper, lower labor, low value add industries to Mexico & SE Asia. It's important to have these industries and diversification in our energy portolio but was should also remain practical and have realistictic expectations about the world - that Oil/Gas is not going to be "replaced" any time soon nor will every American be driving an EV car anytime soon in the next 20 years. There is simply not enough Lithium/Cobalt for that to be a reality and our electrical grid isn't currently built to support it.

I think one panelist is definitely wrong. Fossil fuel industry is not a good industry. So government should make decisions that curtail this sector.

Thanks for the segment.

at the end of the day industrial policies work and are crucial for national security. The free market isn't free anyway as there are huge state backed Chinese firms that skew market

Taiwan's TSMC is not integrating well in the US. It complained that setting up factories in the US is more expensive than it had thought and there are not enough skilled labor. Simply giving out generous government subsidies is not sustainable in the long term.

There's no labor shortage, just a shortage of citizens who can afford or are willing to work for stagnant low rates. This is why they won't close the borders.

We should pick & choose we need chips, batteries, lithium mining, a lot of pivotal technologies of the future that will drive the future economies we need to dominate those markets

If we bring back manufacturing I hope there are strict laws so that we don’t bring back pollution.

The government interfered when they allowed these corps. To go overseas to begin with. We’re just trying to get back what we lost.

Wow love this kond of presentation... Agrees and disagrees.. in one video

Feesl great to hear this!

They still wont pay a living wage

Just in time for the work permits being granted😞🤔

İt's just like farming. Farming in the US and Europe is not profitable. You actually lose money when you farm because very cheap options of fruit, grain and vegetables are available from overseas. So government subsidizes farming, artificially bringing the prices lower by paying up the difference. İt allows farming to continue and not disappear. Because if there's a war or crisis in shipping, you can import cheap foods. You can't even import any food and your country will starve if you don't have your own native farming industry. The same thing is happening now with the manufacturing industry. İt's actually not profitable. You lose money if you manufacture in the USA. But in order not to "starve" later on at the time of crisis, government has to artificially keep the certain industries alive.

Remember when the big deal was being made about foreign car companies (e.g., Toyota, Nissan, VW, BMW, Mercedes) moving their assembly plants to the USA? Yep, I'm old...

"The market is going to figure that out".................I hate economists. The market is going to figure out how to make money not help people, we are so cooked smh. GGs no Re

Because the USA oligarchs failed to exert control over the other countries around the world. Industrial production and natural resources are paramount, a country which depends of foreign countries for its needs, it's vulnerable.

Bringing high volume low margin manufacturing would be disastrous and subsidising it should be discouraged. Low volume high margin and value manufacturing should be restored with emphasis on the nations strong lead in industrial automation and combined with a massive reskilling effort and greater emphasis on trades we can definitely bring high quality manufacturing back to the forefront in the US. And that change is already happening in some states like Georgia. A great example is rail manufacturing where Siemens, Stadler, Alston and Bombardier all are either expanding or constructing massive new factories. Also in terms of clean energy the new recent legislation allowing for lithium manufacturing would greatly help in expanding battery tech.

When I looked at the thumbnail one thing came to mind and that was semi conductors which was addressed in this segment .I don't think people want to be so reliant on technology but...

I consciously shop for made in America products. I'm so glad to see this nation make a comeback

If you wanna be successful, you must take responsibility for your emotions, not place the blame on others. In addition to making you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life...

All these different people talking about the advantages of industrial policy, and then one single guy from the Cato Institute talking about how it's bad. Why is CNBC giving this guy a platform?

I almost missed your reference to high tariffs imposed by Hamilton to protect our mfg. Yes, this was critical for our early move into mfg and the only thing the government should do in terms of putting a thumb on the scale. Subsidies, bureaucratic direction, etc., all lead to corruption and insider deals. Eventually.

So… You mean we’re finally grappling with the truth. Jobs weren’t lost to automation if it allowed 100’s of million of Chinese to come off the farm?

good we need more jobs here. Iam tired of us outsourcing all our opportunities to others. Other countries do nothing fo us when we need it and they stay talking shiii while they still have there hands out for economic aid

Great video On what 2 invest in

Every countries need some level of protectionism to keep both jobs and market shares internally.

Don`t subsidies for local production violate WTO rules? I remember the conflicts between the US and Europe over subsidies for Airbus and Boeing.

inflation will be permanent if so

The government doesn’t pick winners and losers; we do. We learned that smoking was bad for your health and chose to get politicians to prevent advertising something that kills people. That might even be an infringement of a corporations freedom of speech, but we wanted it and the government did it

We do need industrial companies here in the USA so supply chain international politics can’t be used against us.

That's like my USA 🇺🇸 ❤ need factories back!!! Will bring innovation 💡 and R and D!!!

I want to come to work in the USA. I'm a Canadian citizen

There's a long way to go but shipping costs will eat into the cost of imports. Theyve already increased substantially since covid, as they continue to skyrocket, they'll make "cheap" imports not so cheap anymore.

Widening profit margins is not a crime. It's a private company, they can do what they want.

Congratulations US!! Your factories are coming back !! We will love seeing the US without huge homelessness!!

Hopefully most of them will come back

The US will remember very soon why many of these manufacturing jobs left in the first place. Productivity levels and productivity growth is substandard, if these don´t improve significantly manufacturers wont be able to compansate for higher labor cost. And then there is the lack of technical skills in many sectors. After so many years of making things elsewhere, the know-how is gone, There is not enough expertise in the pipeline and immigration policies will not help. And finally is the issue of profitability, many of the companies moving back manufacturing to the US are not making a profit. They will question their stay on US soil in a few quarters or years for all these reasons.

i remember when this same news network yelled to high-hell that factory jobs weren’t coming back to the States….

According to the Smiling Curve, Manufacturing is the least value-added in the production chain compared to R&D in the front and Sales and Services on the tail end. This is why factories are so sensitive to things like tax breaks, labor costs, and pollution controls, and explains how deep in trouble China is having largely failed to develop a solid grasp of the other ends. This is also why all this investment in domestic production likely won't boost our economy as much as education per dollar spent. It is important that we maintain at least some capability to make things, but it's even more important to be resilient by having a diversity of supply sources, so that a disruptive shock -- including from disasters within America -- doesn't cripple the larger movement of goods and information that our economy and lifestyles depend on.

I was expecting to see a big drop for office buildings: 08:36

Great report!

Not even a mention of the global supply chain breakdown influencing companies to onshore.

This is more about trapping long-term companies with short-term implementation of incentives.

How about all the manufacturing in Texas? That destroys this guys argument about factories opening in purple states only.

this is good news! how long will it take to train everyone, since our workers are not top tier anymore? are most people will to work, cause one of the reason many factories moved out starting in 2008, too many people complain their pay is too low, work long hours, etc.? how much will we charge, since made in the usa will become more expensive due to salary differences in other countries? where are we going to get raw materials??? are we going to start mining and process our own raw materials or buy it from the country that controls 90% of the raw materials?

We are seeing big growth in these sectors and it's great and one thing that was not mentioned in this video but is a huge part of it it's not the biggest part of it is that China Rose their head a little too early in the game and because of all of the backlash and China's one-child policy they don't have enough people to keep their factories going and it's becoming more expensive in China and people are getting out of China because of the obligate vyas implications of war and they are going to places like Vietnam and Mexico and the United States China in a way really screwed themselves here because all that cheap manufacturing they had is leaving it an alarming rate and the u.s. is capitalizing by incentivizing companies

There is no such thing as a free market. There are always rules to keep things with the rails.

FINALLY!!! (I'm exhausted of the "made in china" thing).

In the 70's the government began a program to fine businesses for any little reason. This led to companies looking for more company friendly countries. Companies used their influence to get the Tariffs dropped. This began the exit of manufacturing jobs to off shore. Today factory owners are bombarded with countries trying to get them to move to their country. SOLUTION: the government needs to offer free college for engineering students. Include free vocational training for mechanist. The better business bureau needs to target people with skills and education to build companies. Here in America. Put the trade tariffs back to the level they were in the 60's. Do not let foreign students take engineering and science classes that come from a country that do not share our values

that is very good news we need things that are made in USA, quality products are made

The US can become the manufacturing powerhouse of the world. More skilled labor and autonation is needed tho

Since Biden took office, there seem to have been more unfavorable results in America. These results include effects on the markets, such as price declines and sharp increases in inflation, as well as bank failures. I wonder if the sudden increase in interest rates will help value investors or if it would be wiser to stay away from the stock and financial markets for the time being.

In britain working as a skilled man a patternmaker I started to be treated as something from the 1890 s

australia needs to do this we dont even make cars here any more

The claim that there isn’t enough EV charging for road trips in the US is false. You can travel coast to coast using Tesla's Supercharger network here and across the world

Manufacturing can come back to the US. Needs government support (aka socialist policies) and people need to accept higher to much higher prices. US capitalism is the direct result of manufacturing moving offshore. I don't see it happening any time soon. FYI the attempt to build Microprocessor manufacturing in Arizona is already in trouble with govt reducing subsidies

"offshore" was one of the biggest mistakes by the US government.

Now this is a news that i thought was never possible.

The title should be why the factories are not coming back to the US unless through arm twisting by the government.

We've tried 'hands off, market will sort its self out'. And it did... offshore, to China, which put its thumb on the scale where we didn't. The 'free market' is not a divine power with our (citizen) well-being in mind. It is a machine designed to maximize short-term profit for a few individuals. And it works.. in the short-term, after which those individuals yolo out and start mass layoffs, selling companies for parts, etc. And it has no incentive in the well-being of the nation (retirement, drinkable water, climate change, health care), which tends to all lower profits, even though we keep saying 'government should not help any of these things, the free-market will take care of it'. Which.. makes no sense, logically or historically, since it is designed at its very core to avoid any and all costs beyond the immediate need for quarterly shareholder profits. It is designed from its very DNA to screw over employees and the ecosystem at any possible point because, if it doesn't, its competitor will and it will show higher profits. The free market is not a 'bad thing' so long as we regulate it as the machine it is designed to be. It can even work really well. It becomes a terrible thing when it starts being treated as a benevolent religion that can do no wrong, that must be left free to shower us all in trickle-down bounty and rainbows. Which is what rich people keep trying to sell us on, and have been for a very long time. Scott seems heavily partisan and disconnected from reality. Yea there is political bias in the system. Pick better politicians and hold them accountable for their success / failures, so they start actually consulting experts instead of their PR teams. And elect them based on that success, not on the color of their ties. And hold them accountable to their districts / nation instead of to the national parties. (Tiered voting would help break us out of that). And yea, there are smart people abroad who can't (or don't want) to get here. But you know what? We have a ton of geniuses Here, already, who will never show up because they can't afford a quality education, because 'the free market' isn't incentivized to help them with that. And because our education system sucks, because we don't fund it properly. And yea, its possible the government will 'fund the wrong technology'. Oops. So what? At least we'll be doing Something to try and get jobs back. How much will 'funding the wrong tech' cost us vs doing nothing? How much have we spent on military R&D that never went anywhere? Should we cancel the budget to the military? Consult experts, fund what they suggest, and if we get it wrong then cut funding and move on. Corporations in 'the holy and divine free market' do that all the time and its just part of the expenses. Just.. uff. Scott.. Scott... come back to us buddy.. you're supposed to be an economist right? The theories you're defending have failed over.. and over.. and over.... let them go buddy. Trickle down doesn't work, the free market has only ever worked when properly funded and regulated, otherwise it cheerfully screws us over every. single. time.

The negative externality from return of manufacturing is increased pollution, making it much harder for US to achieve goals such as emission reduction.

The chip act has paid $0 . So the fact that the chip act has made zero jobs should be recognized by these people.