In the
1960s, US companies did establish manufacturing plants in countries where their
products would be sold. They also
established plants in low wage countries if the touch labor component was
significant. But, US companies were
cautious about investing in countries that were politically unstable or
dangerous.
In the
1970s, Texas Instruments developed the transistor, heralding the death of the
vacuum tube and allowing lots of innovation for products that would increase
productivity in most industries.
Engineers were writing firmware programs for their Z-80 chips, Zilog’s 8
bit microprocessor. Big, expensive
mechanical desktop calculators were replaced by small, cheap electronic
calculators. Portable phones were
developed that could pick up signals using radio frequency RF technology. Robotized welders were being developed along
with other advances in automation.
Electronics for airplanes and tractors improved previous devices. PCs were being built by hobbyists and Radio
Shack developed the TRS-80 PC. Bell
Labs, Kodak, IBM, Microsoft, Apple and other US companies contributed these
technology advances. The Japanese
developed electronic component insertion machines and wave solder
machines. The Germans developed more
refined machine tools. Foreign countries
were requiring some industries to do their final assembly in their country, but
electronics and finished products like cars, tractors and automation equipment
continued to be exported.
In the
1980s, US electronics companies had developed PCs and programmable logic
controllers for almost every product, industry and application. US Exports rose markedly as other industries
in other countries scrambled to get productivity-enhancing products and
technology. This created a boom in US
exports. US companies sold their latest
products to US companies and consumers and could sell last years’ products to
foreign countries. Sales volume
doubled. As microprocessors became faster
and cheaper, so did the devices.
In the
1990s, PC prices fell from $5000 to $3000 and microprocessors became fast
enough to handle the internet. By the
end of the 1990s, PCs were selling for under $1000. Cell phones were the next big product to
develop and Telecom was preparing to retool.
Satellites and ground stations had been equipped with the capability to
handle these cell phones and they were ready to replace land line phones. Voice and data could be transmitted via
satellite, fiber optic and regular twisted-pair phone lines.
Japan and
Germany had innovated ahead of the US in offering fuel-efficient cars, but now
the US was changing all of its processes to increase production volume.
By 2000,
US companies was off-shoring manufacturing to keep their product costs
low. The heady days of high exports had
ended. US electronics companies were sending their board manufacturing to China
to cut their costs in half.
The US
now has job-killing regulations and has kept its corporate tax rate at 35%. The
US federal government is closing its coal plants and increasing the cost of
energy. The cost of government, healthcare and education in the US is too high
and not worth the cost. Obama has ruined
the US economy and a continuation of his policies would certainly turn the US
into a third-world country. US companies will not return manufacturing to the
US unless they get a 15% corporate tax rate and an end to the war on coal at a
minimum.
Norb
Leahy, Dunwoody GA Tea Party Leader
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