Automation and “If You Sell Here, You Build Here”—Balancing Growth and Fair Wages
In previous articles, we explored how wage reforms and capping CEO pay might shape federal revenue, worker well-being, and overall economic fairness. Now we turn to two potent forces that can reshape these efforts: automation and a policy of “If You Sell Here, You Build Here.” Taken together, these elements speak to a larger question: How do we ensure technological advancement and global competition don’t undermine fair wages, but instead help create a stronger domestic economy?
1. The Automation Conundrum
A. Fears of Job Loss
When companies invest in machines or software to do tasks once done by humans, it sparks concerns over displaced workers. This anxiety intensifies if new wage policies raise labor costs—some worry it could speed up automation.
- Short-Term Disruption: Certain roles, especially repetitive or low-skill positions, become prime targets for automation.
- Skill Mismatch: Workers may not be prepared for roles that demand programming, engineering, or advanced technical know-how.
B. Long-Term Opportunity
- New Tech-Driven Jobs: Designing, building, and maintaining automated systems requires skilled labor—from robotics technicians to software developers.
- Higher Productivity: Automation can slash production costs, potentially lowering prices for consumers. With strong wage floors, more people can afford these goods, further driving demand.
Key Insight: Automation doesn’t necessarily mean fewer overall jobs. It can shift where jobs exist. Policies ensuring companies reinvest in domestic worker training can turn automation into a catalyst for growth, not a threat to livelihoods.
2. The “If You Sell Here, You Build Here” Proposal
A. Encouraging Domestic Production
Under this policy, corporations must manufacture or assemble products in the United States if they want access to American consumers. Given the U.S. is still one of the world’s largest markets, this rule could:
- Revitalize Manufacturing: Reducing the offshoring that’s hollowed out many regions and bringing stable jobs back to American soil.
- Increase Bargaining Power for Workers: If production must happen locally, companies have a greater stake in retaining a well-paid, skilled labor force.
B. Addressing Price Concerns
- Cost of Domestic Labor: Critics argue that making products in the U.S. raises labor costs, which might lead to higher retail prices.
- Automation Offsetting: If companies leverage advanced technology and robotics domestically, they can keep production efficient, partially offsetting higher labor expenses.
Balancing Act: The policy can succeed if improved productivity (through tech) and higher wages (through wage reforms) converge, keeping goods competitively priced while ensuring better pay for workers.
3. Synergy Between Wage Policies and Domestic Production
A. Boosting the Middle Class
- Higher Disposable Income: If workers earn more and production stays local, they can pump money back into local economies—restaurants, shops, and service providers flourish.
- Stronger Tax Base: As covered before, robust domestic employment and higher wages expand payroll and income tax receipts, potentially shrinking the federal deficit over time.
B. Supporting Domestic Innovation
- R&D Ecosystems: Encouraging firms to invest in automation and manufacturing domestically can foster tech hubs, driving innovation in robotics, AI, and advanced materials.
- Education and Retraining: Additional tax revenue could fund programs to upskill or retrain workers so they can transition into tech-oriented roles created by automation.
4. Potential Pitfalls and Criticisms
- Trade Retaliation: Other countries might impose reciprocal barriers on American products, complicating export strategies for U.S. companies.
- Small Business Struggles: While large corporations may adapt to “If You Sell Here, You Build Here,” smaller businesses might face cost hurdles if they rely on imported components or can’t afford the scale of domestic production and automation.
- Implementation Complexities: Defining what counts as “built here” can be tricky—does 50% domestic content suffice, or must the entire supply chain be stateside? Policymakers would need clear, enforceable guidelines.
5. Charting a Path Forward
A. Incremental Rollouts
- Phase-In Approach: Start with key industries (e.g., automotive, tech, essential goods) and gradually expand. This gives businesses time to adjust, invest in automation, and upskill their workforce.
B. Investment in Education & Infrastructure
- STEM Emphasis: Ensure high schools, community colleges, and tech schools are equipped to teach the skills needed for an automated future.
- Modern Infrastructure: Build or upgrade facilities—like broadband networks and smart grids—to support advanced manufacturing throughout the country.
C. Fair Trade Deals
- Maintaining Exports: Seek balanced agreements that allow U.S. goods to flow overseas without crippling tariffs.
- Protecting Domestic Jobs: Incorporate labor and environmental standards that curb a “race to the bottom” abroad.
6. A Vision of Shared Prosperity
By requiring local production for local markets and embracing automation in tandem with wage and job training policies, the U.S. could:
- Revive Key Industries: Offer stable employment in fields that once faced intense offshoring.
- Foster Tech Leadership: Position domestic companies at the forefront of automation, AI, and robotics.
- Ensure Fair Wages: Give everyday workers a genuine chance at a middle-class lifestyle, even in a technologically advanced economy.
Critics will note that shifting supply chains or phasing in local production can’t happen overnight—and some sectors (like electronics or textiles) may face particularly steep transitions. Nonetheless, the combination of high-wage mandates, advanced automation, and domestic production rules points toward a more balanced economic future where benefits don’t just accrue to top earners.
Conclusion and Next Steps
Automation and “If You Sell Here, You Build Here” need not be obstacles to fair wages. With the right mix of policy, infrastructure, and education, they can reinforce each other—creating local jobs, stimulating demand, and raising overall tax revenue to support public services. The key is a holistic approach that prevents corporate evasions, ensures compliance, and invests in workers’ futures.
Keep the Dialogue Going
- Do you see a path for small and mid-sized businesses in an “If You Sell Here, You Build Here” framework?
- What role should government play in funding the education and retraining needed for an automated, high-wage economy?
Share your thoughts in the comments, like, and share to involve more voices in this vital conversation. When we build a bridge between economic growth and fair compensation, we lay the foundation for a society in which technology and prosperity genuinely serve the many, not just the few.
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