There will be no renaissance of manufacturing in the U.K. and U.S.A under right wing economic policies, no matter what right wing politicians like Donald J. Trump or Theresa May might claim with their jingoistic rhetoric. As the colliers, steelworkers & ship builders warned in the 1980’s, once such capacity is lost, it is almost impossible to rebuild.
The notion peddled during the Brexit & Trump campaigns that the Anglophone West is somehow going to resurrect all those factories by building walls and shutting the channel tunnel is tremendously dishonest.
Yet, to justify their other less palatable policies, Right Wing politicians on both sides of the Atlantic have played up and stoked such fears to cover the real truth – when the right wing destroyed western manufacturing by giving in to globalisation they destroyed sections of our national economies which are vital for our survival, particularly in the case of the United Kingdom post Brexit.
To blame the strain caused by that self sabotage on immigrants who pay their taxes is a nonsense, which is why David Davis, the Tory Brexit Minister recently admitted:
“We need immigrants.”
Our manufacturing slump, and the unemployment that came with it, was planned by the Tories. The French & the Germans never allowed the policies that saw Britain carve itself to shreds in the name of the philosophies of the City of London, which is why their state supported industries now own many of our vital British national industries and infrastructure.
Manufacturing works in a very simple way, capital substitutes for Labour at the margin – and the more capital you have the less labour you need. Look at the German companies that didn’t fall to Reagan/Thatcher policy: output is going up whereas employment is going down.
We live in a world where 10% of the global population could produce complete abundance for the rest. This means that we have an institutional problem & a political problem dealing with that fact, but the global economy doesn’t have a problem about where we are going to make goods in factories. The problem is who profits, and how much.
Donald J. Trump & Theresa May, Nigel Farage & Boris Johnson were all dishonest about what they said on manufacturing in the last 2 years – the only way to rekindle manufacturing in countries like Britain and the U.S.A. is to pool the wealth from natural resources into sovereign wealth funds which is then invested in making countries like the U.K. the hub for new technologies.
1. The world’s largest taxi company (Uber) owns no taxis
2. The world’s largest accommodation provider (Airbnb) owns no real estate
3. The largest communications companies (Skype, WhatsApp, Facebook Messenger, Viber) own no infrastructure
4. The world’s most valuable retailer (Alibaba) has no inventory
5. The most popular media platform (Facebook) creates no content
6. The fastest-growing banks actually have no money
7. The world’s largest movie house (Netflix) owns no cinemas
8. The largest software vendors don’t write the apps (Apple, Google, Facebook)