The world is a very interconnected place. Because of globalization, you can get products made in different countries. This is why it’s become increasingly difficult to purchase Baby Shoes Made in the USA. So many products are made outside the USA because it is cheaper and reduces their manufacturing cost and increases their margins. Manufacturing is important for every economy and contributes greatly to the backbone a country. That is why purchasing Baby Shoes Made in the USA is beneficial to the economy because it helps encourage manufacturing in the USA thus making the economy better.
Manufacturing is one of the main paths to development for an economy. Economies that have been manufacturing for decades are one of the richest countries today. The rise of these countries like The United States, Germany, Japan etc started with manufacturing. So if these countries no longer manufacture does it mean that their economies will start to collapse? The power of a country is relative and largely dependent on their economic power.
The most powerful nations in the world are the ones with the biggest economies. These leading economies control the bulk of all the production and manufacturing in the world. This means that they also have the technology to manufacture new products and technology. The countries that manufacture these types of machinery and technology have a lot of control and this makes them the leading economies. In the 1950s The United States was in charge of the manufacturing of almost 50% of the products and machinery in the world and that number has dropped to about 16% now. This means that following the formula of manufacturing being the backbone of an economy, then the United States will soon lose its place as a leading economy in the world. This is why the United States is trying to bring manufacturing back into the country and trying to get new companies to manufacture their product in the country. This is particularly hard to do as manufacturing outside the United States is a lot cheaper than manufacturing within the US. Thus when people are encouraged to buy Baby Shoes Made in the USA they are hesitant because they think it would be more expensive.
As mentioned earlier in more ways than one, manufacturing directly contributes to the growth of an economy. Manufacturing is one of the most important causes of economic growth. Manufacturing and all the technological improvements that it brings spreads to other parts of the economy and leads to long-term and sustainable growth. Now when thinking of manufacturing, some people tend to think only of large products like cars or truck but these days manufacturing also includes devices like phone, computers, computer chips and other smaller product parts that we don’t even know b name. Manufacturing not only includes these components but also the machines that make these components. They have to be manufactured, maintained and operated from day to day and this means that people have to fill those jobs and more jobs mean more income and a growing and booming economy. The technological and productive potential of machines and machine tools, factories and the human power and intellect all affect each other as well, leading to the explosive economic growth that lasts for decades and even for hundreds of years.
The global trade market is mainly dominated by the trading of goods and if a country has no manufacturing it means they have no goods to trade. There is also a trade of services but it makes up just 20% of the total global trade and so even if an economy produces services, it still needs to have a strong manufacturing power to be able to effectively compete in the global trade market. Besides not being able to compete in a country with little or no goods to trade in the global market will have a very weak currency. A currency is strong and grows stronger the more people use it all over the world and people will use it more if there are goods and services offered from the country with that currency. If the country does not participate in global trade then it’s currency will not be in circulation or use around the world thus making it very weak.
As can already be deduced from the points above, manufacturing creates jobs. One of the most important determinants of the state if an economy is the rate of unemployment. The lower it is the more progressive the economy is. Manufacturing helps to create jobs and this means that the more manufacturing there is, the more jobs will be available to the people in that economy. According to the Organization of Economic Co-operating and Development (OECD) in 2005, the Japanese manufacturing sector was 20.2% of its economy, in Germany it was 23.2%, and in the US manufacturing accounted for 13.4%. According to the Economic Policy Institute, each manufacturing job helps to create and support up to three other jobs in the economy. Thus the wellbeing of an economy and its sustenance is largely dependent on the economy as it creates a ripple effect in other areas.