Saturday, September 18, 2010

Is American Tech Industry Oiling Its Own Guillotine.

• Reference:

Hiner, J. (2010, August 30). Is the American Tech Industry Oiling Its Own Guillotine? Retrieved September 4, 2010, from ZDNet: http://www.zdnet.com/blog/btl/is-the-american-tech-industry-oiling-its-own-guillotine/38594


• Summary:

In the article “Is American Tech Industry Oiling Its Own Guillotine,” the author Jason Hiner talks about the impact of moving manufacturing jobs over sees. The article is based upon the assertions made by former Intel CEO Andy Grove about the modern trends in business. According to the article, Grove has begun to warn about the problems of moving manufacturing jobs overseas and is promoting what some call a protectionist business agenda. According to Grove, if America continues the practice of exporting manufacturing jobs it will destroy its own economy. Gates said that innovation is tied to manufacturing and that by allowing manufacturing elsewhere the innovation will occur elsewhere. Grove uses the battery industry as an example. The batteries manufactured now are made by companies in Asia, while this was not a problem, now with the growing demand for lithium batteries other countries are set to profit. According to Grove, the government should start enacting policies designed to keep manufacturing jobs in America by providing incentives to companies here and applying additional taxes and tariffs to companies who manufacture their products overseas.




• Response:

I can understand the concerns of Grove. Any country that does not manufacture its own products is at a disadvantage to countries that do. I do not see how this is allowed to happen. Countries have many people who need jobs and a way to learn a trade or occupation; however, without the opportunity they will not have the chance. I would think that countries would want to manufacture their own products for economic reasons. For one, more people working means more tax revenue. It is also good for security. It is not good for a nation to have to rely on another country for products. If something happens, then that country can refuse to produce the products and that would hurt everyone. Also, not everyone can work in an office or have a degree; some people need manufacturing jobs to support their families. I believe it is time for America to reconsider whether it wants to allow all of its manufacturing to be done by other countries when it has people here who could do the work.

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