What does building bigger warehouses in the USA signal?
A Chicago Tribune article titled: High unemployment rates persist in Chicago’s south suburban communities of color, reported the following statement.
“Andrews said the pandemic, with consumers isolated at home, accelerated demand for shopping online, and planned openings later this spring of Amazon fulfillment centers in Markham, Matteson and University Park could open up new job opportunities for residents of suburbs with high unemployment rates.”
The Purpose of This Post
Is to relate and ancient wisdom verse and opinion of what is seemingly good news unless we discern what building massive warehouses is really bad news for American manufacturing and employment in the future.
Since no one knows the future, who can tell someone else what is to come? (Ecclesiastes 8:5)
What’s My Point?
The above Bible wisdom verse written 3000 years ago was intended to warn people not to believe people who claim to know what is in the future.
In our contemporary times government and sophisticated marketing techniques used by businesses, such as statistical analysis, analog computers, buying trends, allow for marketing and sales managers to make fairly accurate predictions of sales opportunities in the future.
My point is if we discern why Amazon and other businesses have a need to build larger warehouses, it signals that the USA will continue to rely on imported manufactured products instead of American manufactured products under new Washington political administration.
For example, in a previous post titled: Missing Critical ‘Components’ in USA Government? I explained how flooding dollars to stimulate the economy has led to critical shortages of computer chips which formerly 60 percent were manufactured in the USA vs. 12 percent today due to outsourcing.
Other reports of abundance of dollars are creating inflation in the USA markets, the result of flooding dollars into the economy..
In My Opinion
While the Chicago Tribune lauds that building the warehouses will create jobs, the jobs are for mainly lower end wages compared to what trained skilled manufacturing workers make.
Business in the past relined on concepts of just in time which is still a practice in Japan by relying on having suppliers close by to bring in parts only when needed, Instead of large warehousing in plants, the lack of manufacturers in the USA due to the massive outsourcing from the USA is creating a need for additional warehouses to store imported products.
And if you investigate the future of solar panels for energy suppliers in the USA you will discover that the majority of solar panel suppliers are basically assemblers of panels being imported for China.
In other words, building bigger warehouses in the USA, and printing dollars without having a long-range plan signals greater trade deficits in the future along with more dependence on foreign manufacturing instead of USA workers.
That in spite of the sad experience of the pandemic when it was found that 90 percent of PPE masks and equipment was imported from source 8000 miles away and resulted in long wait times and in my opinion helped to increase deaths of both patients and medical personnel.
As for trade deficits and economy growth, it is an ironic travesty that China economy balance of trade benefited with the largest trade surplus in the world after being the cause of the pandemic..
Is building larger warehouses a signal of the future for the USA manufacturing workers, balance of trade, and economy in the future.
Is flooding the USA with dollars without long range and incremental planning going to create an economic bubble and taxpayer grief in the future.
Read the Source Links below.
Regards and goodwill blogging
Critical Components in USA Government