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Monday, September 14, 2015

3-D Printing vs. Factory Jobs

I have presented the traditional case for free trade. What is different is the technological framework: computer programs, 3-D machines, and goo. But the technology in no way affects the validity of the arguments for free trade.
The United States government wants our money. It uses tariffs to get it: sales taxes on imports.
The government gets voters to assent to these sales taxes. How? With slogans like these:
Save American jobs! (Especially at the IRS.)
Buy American!
Stop rewarding foreign slave labor! (Especially in Canada, America's #1 trading partner)
End cut-throat foreign competition!
Made in America!
Keep America's money in America!
Then the unions add this: "Solidarity forever!"
Here is reality: millions of factory jobs are not going to survive the competition of 3-D printing. With or without tariffs, they are doomed. The workers will not be replaced when they retire . . . if the factories stay open that long. It does not matter where these jobs are, geographically speaking. The decentralization of digital technology is accelerating. There is nothing that any government or special-interest lobbying group can do to reverse this.
The American labor union movement is dying. It has been dying since 1954. But 3-D printing is going to finish the job in the private sector.
Advocates of tariffs can sing the old songs, in the same way that retired union members can still sing "Solidarity Forever." But the handwriting is on the screen.