Trump's Unrealistic Tech 100% Made in USA

One of President Trump’s biggest goals is to increase domestic manufacturing for in-demand technologies, with the goal of guaranteeing supply chains, to 100% “Made in the USA”. While I preach the concept of self-dependence, 100% is just unrealistic.

His plan, called “Genesis Mission”, is seeking to leverage US dominance in AI to maintain an edge in advanced robotics, biotechnology, semiconductors, and nuclear technologies. He believes the plan works best with self-sustaining supply chains, and neighboring countries, nor longtime allies, should be relied upon to manufacture a single component of any US product. Idealistic? Yes. Unrealistic? Also yes.

Costs would skyrocket with American labor, and we simply don’t have enough natural resources to reach 100% self-dependence. The Consumer Technology Association (CTA) has warned that such goals are not grounded in reality. Reaching full US production of 10 major product categories most commonly found in US homes by 2031 would cost around $200 billion in capital expenditures, around 600,000 additional full-time employees, and 19 billion additional kilowatt-hours of electricity per year.

The labor demand would likely be the biggest problem. The existing US computer and electronics manufacturing workforce would have to more than double in size. Additionally, the energy demand required by all supply chains would clash with AI’s huge energy needs. That said, though, I’d much rather see domestic tech production than endless AI data centers.

Smartphones would be the most expensive product to manufacture which Americans consider least dispensable. The cost of fully manufacturing a smartphone in the US would go up by 152 percent, the CTA estimated. Based on a story I read a few years ago, I would disagree. Profit margins on smartphones are allegedly huge, very huge. The CTA also states laptops would cost 93 percent more and smartwatches 97 percent more. TVs would cost 41 percent more to build entirely in the US. They also estimate about 50% of the increase would need to be passed on to customers almost immediately.

Let’s face the facts. If Americans hadn’t sold their economic soul to pennies-on-the-dollar foreign labor over the last 40+ years, we wouldn’t be in this situation to begin with. Times are difficult with rising costs of rent, groceries, and fuel. However, a simple look at history shows the average household has products and services our parents and grandparents only dreamed of decades ago. Cheap goods are destroying us. High-paying manufacturing represents only 12% of U.S. jobs, down from nearly 40% decades ago.

If we only brought back assembly, rather than production, additional costs would be far less, maybe only half as much. I don’t like that idea. It still leaves us completely dependent on others for production. That’s not good for national security.

A much better idea would be a goal of producing 50% of parts and products in the United States. Demand on labor would be less and availability of resources would be more realistic. We could cater to those with money to buy American versions of products. Tariffs could also be used wisely, instead of seemingly at random or in retribution, to help level the playing field.

Source used: arstechnica.com

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