Production and Prototyping

We are told capitalism brought prosperity to the West. Actually, our prosperity is due to the introduction of mass production, the development of rational management, and funding by capitalism. Read The Wealth of Nations and you'll see Adam Smith explain the benefits of the division of labor for increasing productivity. Capitalism is only a part of the pattern.

If America quits producing goods, our prosperity will diminish. Productivity from the division of labor depends upon mass production to generate large profits. These large profits will disappear if mass production disappears from America.

If some investors want to use cheaper labor over seas, then we need investors who can find an economical reason to produce goods in America with higher labor costs. Let's consider reasons to manufacture in America.

First, consider the myth of cheap labor. When products fail and customers quit buying your product or sue for damages, then the cheap labor turns out not to be so cheap.

When an educated and disciplined work force is needed to produce sophisticated products with hi-tech machinery, then cheaper labor that cannot work the machinery properly. Poor quality labor results in poor quality products and profit loss after the customers discover the drop in quality. In this case, cheap labor is a mirage.

Factories that build the production tools for mass production factories are good candidates for Texas industries. Prototyping products and machine tools is another candidate for Texas industries. Here is an example of a prototyping business in Illinois: GPI Prototype and Manufacturing Services. Any new product developed in America could be produced here in Texas with the view of designing factories that can be built in Texas. If the these new businesses want to expand overseas, then the machine tools should be built in Texas factories.

We must not give up on investing in America. We need to invest in factories in Texas so our children can have a future.

Robert Canright