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Higher Oil Prices Are Starting To Bring Jobs Home

penguin_dance notes a report up at ABC News that high oil and gas prices in the US may be moving jobs back home in a trend that some economists are calling "reverse globalization." It's becoming more and more expensive to ship finished product from other countries, so some companies are moving the manufacturing back to the US. The article hints that this trend may spill over soon to raw materials such as steel. One economist is quoted: "It's not just about labor costs anymore. Distance costs money, and when you have to shift iron ore from Brazil to China and then ship it back to Pittsburgh, Pittsburgh is looking pretty good at 40 bucks an hour."

14 of 777 comments (clear)

  1. Macroeconomics by Citizen+of+Earth · · Score: 5, Funny

    It's almost like there was some kind of invisible hand at work.

  2. Re:Interersing trend... by Darkness404 · · Score: 5, Insightful

    But we can expect to have European sized cars and European sized houses at the european $3000 per sq ft not the US $125 per sq ft.

    I highly, highly doubt that. With the mortgage crisis here in the US home prices are falling not increasing. And I doubt that that will stop anytime soon. Another thing is, North America has only been explored within the last 500 years, it lacks the shortage of land which is part of why Europe has such high prices for houses, mix that with the fact that home prices are falling and people with a lot of land are cashing it in to get some cashflow... You get the picture. While this may make large buildings such as new arenas and skyscrapers more pricey, for the average person home prices will only keep falling.
    --
    Taxation is legalized theft, no more, no less.
  3. Re:Interersing trend... by billcopc · · Score: 5, Insightful

    Really ?

    Most days I part with my money because I'm trapped between two evils, and I try to pick the lesser. Telecoms, overpriced food (even staples), services done to the lowest possible standards... Greed is spiraling out of control, because those who spend wisely are impossibly outnumbered by the ravenous fools of our society.

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    -Billco, Fnarg.com
  4. High oil prices will do way more than Kyoto by RobinH · · Score: 5, Insightful

    The fact is, for all the environmentalists out there screaming to put regulations on carbon emissions, etc., the price of energy is the only thing that's going to have a substantial impact on the amount of fuel we use. People are actually considering more fuel efficient vehicles, and at my place of work people are taking advantage of opportunities to work from home once in a while. Especially when their commute is over one hour. If we keep it up, people might move closer to work.

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    "I have never let my schooling interfere with my education." - Mark Twain
  5. The steel thing is already happening by street+struttin' · · Score: 5, Informative

    My dad has worked in steel for the past 38 years and he says they are busy as hell because the fuel cost and weak dollar has been making US steel cheaper for a while now.

  6. Re:Interersing trend... by Zak3056 · · Score: 5, Insightful

    Umm... Most of the cost that Europeans pay for fuel is in the form of taxes, which they have voluntarily inflicted upon themselves, and not some kind of relationship to status as a world power. Oil is traded in a world market, whoever pays more gets the oil.

    Also, the housing prices you linked to are in cost/square METER. Given that there are roughly ten square feet in a square meter, the costs are 2x, not 24x as you suggest.

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    What part of "shall not be infringed" is so hard to understand?
  7. Re:Interersing trend... by mikael · · Score: 5, Informative

    The EU is doing just fine dealing with $5+ for a gallon of gas,

    Are you kidding? So far Europe has had truck drivers go on strike against fuel tax, fuel delivery drivers go on strike for a 14% pay increase, annual electricity/gas bills rising at 40%/year threatening to push a quarter of all households (5 million families) into fuel poverty, councils raising the cost of school meals due to the expense of transportation. Even the police are having to cut back on front line staff due to the additional expense. Food bills have risen by 20% since the start of the year.

    The advertisements on the sides of public transport buses read "Fed up of paying fuel duty to go nowhere, take the bus instead and stop your wallet from going empty". Otherwise many people are choosing to cycle in to work, especially university staff.

    All of this is predicted to send house prices down by at least 10%, and then one minister tells people that should stop being so miserable about the rising cost of living.

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    Vintage computer adverts: http://www.vintageadbrowser.com/computers-and-software-ads
  8. Re:Interersing trend... by pipingguy · · Score: 5, Funny

    Real problem is still TOO MANY PEOPLE.

    Hmmm, so maybe going nuclear IS the solution...

  9. Re:Interersing trend... by pclminion · · Score: 5, Informative

    Who cares about the environment, it can recover in 20-40 years.

    Where do you get this crap? Take a look at the island of Crete. This island used to be almost completely covered in forest. Then the Minoans began clear-cutting it for lumber to build ships. This continued for several generations. When the forest was clear cut, there was no longer any mechanism for the top soil to be held in place. It washed into the sea. The isle of Crete is now a wasteland in terms of the ability to grow forest -- solid forest has not grown there in thousands years.

    You are naive, ignorant, short sighted, and have an offensive disregard for the natural world.

  10. Re:Interersing trend... by pushing-robot · · Score: 5, Funny

    Do you even understand how nuclear bombs work versus how nuclear reactors work? Yes. Until something fails it's a reactor.
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    How can I believe you when you tell me what I don't want to hear?
  11. Missing assumption by Weaselmancer · · Score: 5, Insightful

    You're assuming that OPEC and other sellers won't decrease output to keep production (and therefore, prices) exactly where they are.

    All drilling in Alaska is guaranteed to do is to screw up Alaska.

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    Weaselmancer
    rediculous.
  12. No need for that by Rob+Simpson · · Score: 5, Funny

    Just don't have any children.

    Slashdot: Part of the solution!

  13. Re:Interersing trend... in 1985 by Lincolnshire+Poacher · · Score: 5, Informative

    > we haven't figured out what to do with the tons of nuclear
    > waster we have NOW,much less if we did like McCain wants and
    > added 45 new plants.

    Of course ``we'' have:

    http://www.eoearth.org/article/Fast_neutron_reactors_(FBR)

    Prohibited by the Carter Administration in the USA, but used
    throughout the World. Breeder reactors use the output of
    conventional fission plants as fuel and the resultant waste,
    once reprocessed, has a half-life of a few centuries instead
    of hundreds of millenia.

  14. Re:Interersing trend... by hoppo · · Score: 5, Insightful

    You suggest the "natural world" should forever be a snapshot of when you first noticed it. An environment is not an entity of its own accord. It is a result of all its inputs, and we are a very large input on the environment. The only difference between us and other inputs is our self-awareness.

    The impact we have on the "natural world" becomes part of that world. Are there not birds, rats, cockroaches, etc. that thrive on the fruits of human progress? What makes them less important than the flora and fauna in a tropical rainforest?