Happy!

Get used to a new word for 2013: reshoring.

Conventional wisdom says that American jobs are flying like crazy over to China. But a recent piece in the Christian Science Monitor says otherwise.

There's no official tally of the number of jobs returning, but Harry Moser, director of the Reshoring Initiative, which aims to bring manufacturing jobs back to the United States, estimates that 50,000 jobs have returned in the past three years. He bases his estimate on a close read of the media and on reports his organization receives. If that number is accurate, reshoring would account for 12 percent of the manufacturing jobs the Bureau of Labor Statistics reports returned to the American economy since 2010. 

The Boston Consulting Group, a global management consulting firm, in a September report projected that returned manufacturing could bring 5 million new jobs by 2020 and add $90 billion in US exports to the economy.

Wow.

Why is this happening?

Rising wages in China, unpredictable supply-chain problems, oil prices, and the risk of intellectual property theft are making manufacturers more wary of producing overseas, analysts say.

That's the beauty of the free market, in this case the labor market. Eventually, workers start to demand more money and everything evens out as the labor market adjusts in its growth. But this isn't even the best part.

It's not just that it's getting more expensive to produce overseas. It's also getting cheaper to produce back at home. "It's the shale gas revolution," says Kevin Swift, chief economist and managing director of the American Chemistry Council. "There are low-cost, abundant sources of energy [here] now." Mr. Swift says that's a game changer for his industry: "We were being written off as being noncompetitive. It's completely changed. There's significant investment on the books ... 50 [planned] projects valued at over $40 billion."

Yes, indeed. Things are looking up for our country and it makes me quite happy!

Planet Earth

For all of my crabbing on here, the world is actually getting to be a much better place in which to live. There's a lot of good news out there and if are diligent, you can find it. The best place to start is The Christian Science Monitor as they are usually very unbiased and shy away from sensation. The last issue, for example, had a plethora of good news and I'm going to be highlighting some of their stories over the next week or so. This, by the way, keeps my promise to put up more world news content as well:)

The first one that caught my eye was this story on poverty. I had to read it twice before I believed that it was real. Extreme poverty in the world has been...cut by half?!?

In fact, the rate of decline in extreme poverty everywhere in the world has more than doubled in the past decade, Ravallion says. That's after adjusting for China, whose sheer size makes it an outlier.

Simply amazing.

Now, the article does go on to say that there is still a great deal of poverty in the world but we are heading in the right direction. With the changes seen in China (as noted in the article), the direction we are heading as a world is very, very positive. In fact, I think the prediction that Bono made a year or two ago is going to come true: within 50 years, there will be no more hunger on this planet. Barring some unforeseen catastrophe, there will be no going back to "Live Aid" days. (Note: this includes climate change, incidentally, which is actually quite "foreseen" and will be eventually dealt with in an appropriate fashion).

So, why has this happened? Well, mainly, it's because of us. Our country has spread prosperity around the world in the form of liberal economic theory. Communism is gone and capitalism and free markets are spreading everywhere. If countries don't want to be a part of this (and there aren't many left out there), they will find themselves on the outside. Our new world certainly is not perfect and we have had some growing pains but the increased prosperity has no other explanation. Everyone on the planet wants an iPhone.

And, as the countries of the world begin to need less aid, we are going to see greater wealth in the Global North countries. In fact, my children will likely live in a time where there will be no delineation between the Global North and the Global South.

It's simply going to be Planet Earth.