Christina Romer: U.S. manufacturing doesn’t need gov’t support

A self-professed “change junkie,” I was sent to China by my American employer in 2000 to inspect a new Shenzhen facility. That two-week trip to China has so far lasted over 10 years.

If decision-makers and investors in manufacturing organizations cannot offer competitive wages, safe working conditions, and acceptable living conditions then they should get out of the business.

It is absolutely possible to manufacture ethically and profitably.

Sweatshops are the way they are because excessive greed and/or incompetent management encourages a blinding mis-focus on labor costs.

There is no good reason for factories anywhere to be run like sweatshops. Sweatshop management, contrary to conventional  wisdom, generally doesn’t help the bottom line as it's associated with waste and low productivity. It is as unnecessary as it is immoral.

The header image is adapted from this image on Flikr, which is titled "Economies of Scale: China Manufacturing Base", and is attributedt there to Cory M. Grenier.

It is adapted and used here under the Creative Commons 2.0 license, which can be found at http://creativecommons.org/licenses/by-sa/2.0/deed.en