Grasping Reality with Both Hands: Brad DeLong's Semi-Daily Journal: Manufacturing does not add much value any more.
Cranky Observer writes:
That's what people who work in or for New York financial services entities tend to think, anyway. Those of us who still work in US-based manufacturing tend to see things a bit differently. Knowledge comes from doing, not from viewing on a computer screen - and certainly not from viewing financial statements on a computer screen. When that knowledge is gone (or transferred to others) the capabilities follow very shortly. And, I and many others (including many German policy analysts) would argue, the underlying economy some time thereafter.
Seriously - when all the value-adding work is moved to China and India what exactly is the US going to do? England is a cute tourist destination - perhaps we will do the same?
I would suggest reading (1) the history of Hewlett-Packard's calculator division, including the decision to outsell the whole thing to China and what happened when they tried to bring it back in-house (2) Boeing's recent experience and statements with super-outsourcing major structural components of the 787.