U.S. companies, facing slowing markets and rising costs around the world, are taking a new look at their home market.
With growth slowing in China and a slump gripping much of Europe, companies are adding capacity in the U.S., replacing aging equipment and even moving overseas production back from low-cost labor markets, a sign that corporate America could be poised to take a bigger role in the economic recovery.
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Analysis by Patrick Barron: Dear Sirs:
Perhaps that light at the end of the tunnel is an oncoming train. There is another interpretation to the report that some US companies are “bringing business home”. It is that the worldwide economy is shrinking and is shedding layers of specialization as a result. Austrian business cycle and capital theory explains that an expanding economy–which, of course, does not recognize political borders–requires the establishment of new, more specialized stages of production, which can only be financed with new, real capital. If you became poorer and could no longer afford to pay the neighbor kid to mow your lawn, would you consider it a good thing that you were repatriating this toil to yourself?
Maybe Patrick Barron could evaluate this discussion and its impact of U. S. economy:
www.youtube.com/watch?v=kgfctMNeDtg&feature=player_embedded
Ed K