Over the decades we have all seen a significant shift in the manufacturing activities of United States to China. This can be for various reasons like availability of cheaper labor, lowering of total cost of production and (may be) a deliberate shift of industries from US to reduce its carbon footprint. These changes are so large that it is not easy for a nation to bring back these manufacturing facilities back to US.
Now, after the recession, the US employment picture is so bleak and the unemployment rates are hovering around 9-10%. It suddenly cannot increase the employment opportunities of its citizens, one of the major reasons being that it cannot shift its manufacturing bases back to US. It can prove detrimental in two ways – 1) The amount of investment needed for this is very large and 2) This can increase the cost of production significantly and the sales will fall.
The United States, typically, is between the devil and the dead sea.
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