Industrial Revival in the U.S.?

The Financial Times thinks so. And it won’t come about because of any silly 0% manufacturing tax or other distortionary government policy. It will be because of the same thing as always: production costs and the ability to get your product to market. And we’ll even be gaining on China:

The consultants estimate that because of the underlying shifts, the US will by 2015 have a cost advantage over manufactured goods exports of 5 to 25 per cent compared with countries such as Germany, Japan and the UK. In particular, the cost disadvantage the US suffers compared with China is starting to decrease.

While in 2010, the cost of turning out a dollar’s worth of goods in a Chinese factory was on average 12 per cent less than the equivalent cost in the US; by 2015 the cost gap will be reduced to 7 per cent, the consultants say.

 

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