The Re-industrialization of America?

Michael Steinberg's smart piece at Seeking Alpha makes a persuasive argument that this downturn in the world economy shows the inherent weakness of the global economy--long lead time for orders. He also points out that American factories are running so efficiently they won't be laying off workers in the current recession. But this claim is striking:

The long production cycle, just-in-time manufacturing model exemplified by Toyota (TM) is now dead. China just does not realize this yet. Local highly flexible manufacturing will replace the lethargic dinosaur logistics and sourcing that signifies the Chinese-Wal-Mart (WMT) model of today. How much longer can Macy’s (M) order 9 months in advance for Christmas?

Is this recession that reshapes the economy into a decentralized, more highly efficient industrial base? Will inefficient, cheap labor markets lose their edge to leaner domestic producers? I don't know, but it is a fascinating possibility.

Green Stimulus Ctd

A commenter in this thread provides this link for those who wish to participate in discussion on some of the environmentally friendly programs in the stimulus package Obama will sign today.

Green Stimulus

For all the whining coming from Republicans about pork in the soon to be signed stimulus bill, this is good news.

The final bill, approved by the House and Senate on Friday, contains more than $1.5 billion for construction and maintenance projects in the Bureau of Land Management, the National Park Service and the Forest Service. That includes addressing pollution and safety hazards caused by abandoned mines on public lands.

The three agencies together spent about $25 million on mine cleanup in the budget year that ended last Sept. 30, according to the staff of Sen. Dianne Feinstein, D-Calif., one of the lawmakers who sought the money.

Projects ranging from repairing trails to replacing equipment also are eligible for the money, so there is no guarantee the money will be spent on mine cleanup. The bill says preference is supposed to go to projects that generate most jobs.

A cleaner planet and job creation. I'm all for that.