Category Archives: Demand Planning

Posts on demand planning, purchasing, or operations, particularly in the wholesale distribution business

Future of the U.S. Economy?

I had to read this dismaying story twice about the manufacture of iPhones in China.  The question isn’t whether American companies have an “obligation” to support American workers.  Rather, how long do American businesses expect people to buy their products with minimum wage paychecks from a fast food restaurant job?

I don’t begrudge China its success in turning into an industrial powerhouse.  What is distressing, however, is the inability or lack of interest in keeping up with the times.

The No-Growth Trap: An Endless Loop

I came across this story in The National Interest after the New York Times’s David Leonhardt tweeted it.  Densely written, the incisive view on our stagnant economy and politics is well worth your time.  My only quabble is this sentence.

“The borrowing that the government needs to do to fund its shortfall absorbs the savings that in a fully employed economy would otherwise go into investments in new factories, new equipment, new office buildings, new research and new houses.”

While we’re good at designing products in this country, the actual assembly of them is farmed out to foreign countries.  I see little incentive for American companies to build new factories and engage in production at home.  Corporate disinterest in domestic manufacturing will continue the stagnating of the U.S. economy.