alt Hacker NewsWe can't manufacture most of those low-end things at competitive prices with developing nations - and we never will be able to (or else we have bigger problems).
So who's going to buy the low-end stuff at high-end prices?
You can try tariffs and the like (as we're foolishly doing right now) - that usually ends up having the opposite intended effect. You make everything more expensive domestically, including manufacturing (b/c your inputs got more expensive), and hurt our ability to export, even the things we did well.
Meanwhile, the rest of the world unencumbered with protectionism reaps the benefits of free trade and out competes us.
All this eventually leads to a loss of manufacturing jobs and output and manufacturers that can only sell to the domestic market (instead of the whole world). The whole sector starts to shrink. So that's no good.
America has lots of natural resources (even more when we're friendly with Canada) cheap electricity, good transportation infrastructure (historically).
China has to import much of their raw materials. Wood from SEA and Russia, oil from the middle east and Russia, even coal, ore and beef cattle from Australia! They don't have the water supply, forests, mines or oil that exist in North America.
There is no good reason for them to be the manufacturing center of the globe and there were rational reasons why the US was the center of manufacturing in the globe in the 20th century.
The reason they became the global center of manufacturing was policy choices in China and the US at the turn of this century, and the reason why they remain the center of manufacturing is they developed a massive amount of capital and know-how in an era where the USA was actively destroying its own.