The Underpinnings of Social Unrest

The recent protests in Paris, fueled by the Yellow Vest movement, illustrate a deeper frustration among the working and middle classes. These sentiments extend beyond the capital to smaller towns, where many feel unheard by a government that primarily caters to the elite. Is the unrest merely a reaction to increased diesel taxes? The underlying issue is a lack of job opportunities. Despite the presidency, France has struggled to revive its manufacturing base. Innovations in technology, such as those seen in Station F or AI initiatives, are unlikely to fill the gap for low to medium-skilled jobs. Manufacturing was off-shored beginning in the 1980s, a trend that has affected much of Europe, with Germany being a notable exception.

Italy, once a leader in the production of white goods, has similarly shifted focus, relegating its manufacturing prowess to the past in favor of a tourism-centric economy.

The Primary Role of Government: Job Creation

Today’s governments often prioritize high-profile projects that attract media attention—be it startups, blockchain, or autonomous vehicles—while neglecting their fundamental duty: ensuring a dignified life for their citizens through job creation. The emphasis should be on manufacturing jobs that engage individuals’ skills and provide a sense of purpose, rather than solely on high-tech positions that require extensive education.

Robert Moses, an influential figure in New York City’s history, exemplifies the importance of manual labor. As the park commissioner, his ability to create jobs in public parks made him a sought-after ally for politicians. The emphasis on manual labor remains crucial.

During a visit to Colombia in late 2018, I encountered a young, visionary friend aspiring to modernize his city. His inclination toward Silicon Valley-style innovations raised a pertinent question: how many jobs would these sectors truly create? Colombians require practical manufacturing roles that provide basic necessities, rather than high-tech jobs that offer little immediate benefit.

A Shift in American Politics

Many underestimated Trump’s rise to power. His appeal lay in his commitment to revitalizing manufacturing jobs for marginalized communities. The “America First” policy has demonstrated some success, and the U.S. is currently the leading global economy, with efforts underway to bring back manufacturing jobs. The on-shoring of these roles represents a significant step in the right direction.

The Perils of Automation

The push for driverless cars and automated stores raises questions about the necessity of such technologies. While innovations are impressive, we must prioritize human employment over algorithmic replacements. As an entrepreneur and technology enthusiast, I’ve grown increasingly wary of tech investors who prioritize profit over societal impact.

The assumption that technology is inherently beneficial must be challenged. We must evaluate whether advancements enhance society or contribute to job loss. While robots may replace dangerous jobs, we should reserve safer roles for humans.

The Case of Israel

Israel has become a model for innovation, often celebrated as the "startup nation." However, it is crucial to recognize that only a small percentage of the workforce is employed in the tech sector, leaving a gap in lower-skilled manufacturing jobs. Despite its technological successes, Israel faces the same job creation challenges as other developed nations.

Historical Context of Unemployment

The dawn of industrial machinery in 1781 marked a turning point, leading to widespread unemployment as people transitioned from agricultural roles. The failure of capitalism to provide sufficient jobs sparked revolutions. Effective job creation, particularly in manufacturing, remains essential for societal stability.

A Reflection on Western Decline

The events of December 11, 2001, marked a significant turning point in Western economic dynamics with China’s entry into the WTO. This shift initiated a trend of off-shoring that has had lasting repercussions for the working class in the West, leading to job losses and economic disparity.

The Role of Economic Theory

Milton Friedman’s views on profit maximization have enabled elites to justify off-shoring jobs. The concept of comparative advantage has led to a fragile industrial base in the West, while China has cultivated a comprehensive manufacturing ecosystem. The emphasis on financial growth over manufacturing sustainability has weakened Western economies.

The Consequences of Off-Shoring

The off-shoring of jobs has exacerbated social issues, leading to income loss and increased reliance on welfare. Politicians often become disconnected from manufacturing realities, resulting in misguided policies.

The Need for a Paradigm Shift

There is a pressing need to re-evaluate how we value companies, shifting from profit-centric models to those that prioritize employment. Technology and businesses should be assessed based on their societal impact, particularly concerning job creation.

Conclusion: A Call for Action

To address the challenges ahead, we must advocate for the re-onshoring of manufacturing jobs, regardless of their technological complexity. By developing supportive industry policies and reforming education systems, we can cultivate a workforce that values dignity and opportunity for all.

Ultimately, the goal is to restore manufacturing to our cities and nations, providing jobs that foster a sense of community and purpose.