Manufacturing to Services

Economics: Lesson 165

If Americans ‘buy Asian,’ what can Asian exporters do with the dollars?

Politicians have trained the public to believe that a manufacturing country is more wealthy. This is true, and the Industrial Revolution is the perfect example of this. But what happens when a nation gets exceedingly rich? It shifts from manufacturing to services.
There are 3rd world countries, 2nd world countries, and 1st world countries, and you can picture them like this; low-productivity agriculture economy, manufacturing economy, and services economy.

After WWll, manufacturing in America has steadily declined as a percentage of the American economy and shifted over to services. The once manufactured goods are now being imported from Canada, Mexico, and China. This is a good thing for both the importing and exporting countries, especially for China since it only substituted manufacturing for low-productivity agriculture in the 1980s.

So why do politicians still tell the public that it is better to be a manufacturing country with tariffs on imported goods? Follow the money. Where is all the money from the tariffs and sales taxes going? Into the pockets of politicians and special interest groups which are usually run by the government. And the money used to buy the imported goods is going to the exporting country. This is not a bad thing. If the U.S. can spend money on importing manufactured goods that are no longer practical to manufacture domestically, then the U.S. should do it. This will allow the U.S to focus more time, money, and space on profitable services that will make the nation richer.

Yes, China is getting American dollars, but you have to remember that the U.S. is getting manufactured goods in return and those dollars will go into buying American goods. It’s a win-win. Just as tariffs on a national border are a lose-lose situation.

5 thoughts on “Manufacturing to Services

  1. I see you are getting close to finishing RPC. What will you do when you finish? You are doing a wonderful job on your essays. How are you doing?


    1. Thank you! Yes, I am almost done, and afterwards I plan to take the RPC calculus course and study Latin. The rest of this year should be more laid back, but it will give me a chance to focus on working.


      1. Cool. Wait a minute you didn’t take Calculus? Did you take Pre-Calculus? I have taken either of those. Latin as in the old language? Or Latin as in Spanish? I know Spanish, but not the language Latin. That’s seems pretty cool though. I’m planning to continue to finish Abeka English. As you saw my posts for Constitutional law, I’m doing that. Its not something I like to do, my father wants me to learn and I was like Alright fine. I don’t know what happens after I finish that. I’m learning Greek History at the moment because I chose to learn that. I’m reading fiction books. I do know Spanish yes, but I am learning more than when I studied it when I was younger. Taking Duolingo, I’m annoyed because they keep adding unnecessary lessons, but that’s Duolingo for you. What I mean is that they add more checkpoints at the moment there are ten and I’m close to finishing eight. Its enough lessons for Spanish. They do have other languages I really want to study another language but not sure what. I’m tired of learning Spanish because it’s language I have known for many years now more than a decade. Sorry about that but yeah I’m alright other that.


  2. I did do pre-calculus, but am starting calculus a bit late. But it’s better to do it than not.
    I am studying the old Latin language, not Spanish, but I get how that can be confusing 😅 I’ve done Duolingo before, but have never stuck to it long enough. Latin is very interesting because so many languages used today stem from it. I know that if you are able to read and understand Latin very well that you can read and interpret other languages too. Like Italian, Spanish, Romanian, French, etc.
    The Constitutional essays are excellent! Really informative and well done. I have been very interested in learning about the Constitution and constitutional law for a while now. I think it is very important now a-days and more people should understand it. So, way to go!


    1. Thank you. Now for French I’m a bit picky on that one because French is well for me it is difficult. Not much of a French person. Italian same, Romanian not too much interest. I do find Dutch, German, Russian, Turkish, Japanese, Norwegian, Swedish, Danish, Polish, Hawaiian, Indonesian, and I think that’s it. I cannot learn a language that can confuse my Spanish learning. Say if I learned Portuguese its similar to Spanish, plus if say the same words and sometimes it has a different meaning I have to extremely careful because some words can be offensive to one and may not offensive to another.

      I’m glad my essays. I will be posting more until I finish I don’t know when though. Other than that I’m happy you enjoyed my essays. I hope you have an awesome day.

      Liked by 1 person

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s