<\/p>\n
Economists at the banking giant Wells Fargo think the Trump Administration\u2019s tariff policies are unlikely to reshore a significant number of manufacturing jobs in the US for the \u201cforeseeable future.\u201d<\/p>\n
Sarah House, Nicole Cervi and Aubrey Woessner argue in a new analysis<\/a> that higher prices and policy uncertainty could impact US firms\u2019 capability to expand payroll.<\/p>\n \u201cAs downstream industries face higher costs, they must decide whether to absorb them and accept lower margins, pass them onto customers via higher selling prices or a combination of the two. Neither avenue is supportive of employment growth.\u201d<\/em><\/p>\n The economists say that reshoring manufacturing jobs would likely take \u201cmany years and come at high cost.\u201d<\/p>\n \u201cUS labor costs are a hurdle. Labor cost differentials with the rest of the world require US manufacturing firms to be highly capital-intensive to compete in a global marketplace. Thus, an expansion in manufacturing employment would require significant capital investment.<\/em><\/p>\n In order for manufacturing employment to return to its historic peak, we estimate at a minimum $2.9 trillion in net new capital investment is required. While sizable, we view this estimate as a lower-bound. The build out of new of capacity would likely unfold over multiple years, with further increases in capital intensity and inflation requiring a higher amount.\u201d<\/em><\/p>\n The Wells Fargo analysts also note that lower fertility rates and a recent reduction in immigration could negatively impact working-age population growth.<\/p>\n Follow us on X<\/a>, Facebook<\/a> and Telegram<\/a><\/span><\/em>   Generated Image: Midjourney<\/em><\/span><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" Economists at the banking giant Wells Fargo think the Trump Administration\u2019s tariff policies are unlikely to reshore a significant number of manufacturing jobs in the US for the \u201cforeseeable future.\u201d Sarah House, Nicole Cervi and Aubrey Woessner argue in a new analysis that higher prices and policy uncertainty could impact US firms\u2019 capability to expand […]<\/p>\n","protected":false},"author":2,"featured_media":393068,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-393065","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/393065","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=393065"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/393065\/revisions"}],"predecessor-version":[{"id":393069,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/393065\/revisions\/393069"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/393068"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=393065"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=393065"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=393065"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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