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America's Future Is In Software, Not Hardware

New submitter tcjr2006 writes "Obama's State of the Union focused on the return of manufacturing jobs to America. This New Yorker story makes the case that the manufacturing jobs aren't going to come back, and he should be focusing on software. Quoting: 'Yes, there are industries where manufacturing jobs can be brought back to America through proper tax incentives and training programs. But maybe he should have talked more about the things that he could do to keep software jobs here. He spoke of federal funding for university and scientific research. But a real pro-software agenda would also include reforming patent law to stop trolling (and perhaps eliminating software patents altogether); increasing H-1B visas for highly skilled coders; stopping Congress from defunding DARPA, whose research helped create Siri, the iPhone’s talking assistant; and opening up the unused, federally owned wireless spectrum. That agenda wouldn’t bring Apple’s manufacturing jobs back, but it would help to keep the company’s coding jobs here. And it would certainly help develop "an economy that’s built to last."'"

31 of 630 comments (clear)

  1. Oh yes, software by Anonymous Coward · · Score: 5, Insightful

    We can eat it, wear it, breathe it... What the hell kind of society will this be if everyone just writes software all day?

    1. Re:Oh yes, software by jcreus · · Score: 5, Funny

      Heaven?

    2. Re:Oh yes, software by cfulmer · · Score: 5, Insightful

      That's silly. Almost nobody is engaged in the production of food, yet it's plentiful and cheap. 100 years ago, well over 50% of the population of the US was engaged in agriculture; today, that number is around 2%.

      The same forces that drove agricultural employment down have also driven manufacturing employment down. US manufacturing output, after adjusting for inflation, is the highest it's ever been (well, in 2007, it was the highest. It's in a dip right now b/c of the economy.) Meanwhile, manufacturing employment has been dropping steadily since the early '50s. That's only possible because US workers are far more productive than they were in the past.

      As US manufacturing workers become more productive, more are freed up to do things which a less prosperous country could not afford to do, like developing software.

    3. Re:Oh yes, software by russotto · · Score: 4, Insightful

      Let's suppose that some time in the next, I don't know, ten or twenty years, the combination of general purpose programmable robots and 3D printers allows you to do anything that might generally fall under the designation "manual labor" more cheaply with a machine than it costs to hire a person.

      Not going to happen. It was happening, and then someone realized that there already are plenty of general-purpose programmable organic robots far more flexible than any mechanical implement likely to appear within the next 50 years. And that you can in fact maintain these robots far more cheaply than most Westerners think. Thus, Chinese manufacturing was born.

    4. Re:Oh yes, software by Hatta · · Score: 5, Funny

      This is such a fantasy, we might as well base our economy on Unicorn horns.

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    5. Re:Oh yes, software by Pieroxy · · Score: 4, Insightful

      In all fairness, there is a heck of a lot more value in software than in hardware. Hardware is now a commodity, nothing more.

      And in other news, this is one of the very very rare piece of wisdom to make it up the front page of slashdot in a long time. It's like there was a disturbance in the force... Did you feel it too?

    6. Re:Oh yes, software by masternerdguy · · Score: 5, Insightful

      With one problem: Our society believes that everyone has to work for their supper. The problem is that as production gets more efficient you don't need as many people. We're going to have some serious problems if we can't get it through our heads that we're going to make a world so efficient that eventually very few people will need to be employed.

      --
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    7. Re:Oh yes, software by DrgnDancer · · Score: 5, Insightful

      This isn't a half bad comment, especially for an Anonymous first poster. I see three essential problems with the ideas in the article:

      1) As the parent said, you can't eat, wear, or live in software. It's a great business to be in, but I don't want everyone to be in it. I like food, I like fuel, I like a house... all of these things need to be made. They can be made elsewhere, but when we rely on China to make everything we use day to day, we give China the power to starve us, to make us homeless, to leave us without clothes. I'm not an isolationist, and I accept that we live in a global economy, but do we really want to abdicate *all* of our manufacturing to other countries? Having local producers limits energy needs, reduces pollution and makes sure we still have the capacity when something happens and China can no longer provide something for us. Look at what happened to hard drives when Thailand flooded.

      2) Not everyone can write software. There, I said it. Not every American has the education, intelligence, drive, interest... whatever to be a producer of software or designer of systems. All of these people who want to "refocus" America on white collar, intellectual property type work places seem to overlook this fact. The country will quickly become a place when you are either an elite (a producer, seller, marketer, manager, or owner of some sort of high tech stuff or other, or old money) or a member of a servant class. The only non-white-collar jobs will be in retail sales, restaurants, etc. Maybe construction, so we all still have places to buy stuff.

      3) Not all of these idea will even help all that much with software as a driving force of the economy. Or they they'll help the companies without really helping the US economy. Primarily I'm talking about the H1B stuff here. I'm not suggesting that we stop the H1B program. It's a good thing to try to bring the best and brightest of other nations over; often it's a good thing for both us and the country of origin. Many of these people go home after a while with the experience of having worked in or for some of the largest companies in the world. They carry back useful skills and experience. None the less, this should be a careful and limited program with safeguards in place to make it's not being abused and used to bring in cheap easily abuse-able labor. No one benefits from that (except the greedy bastards abusing the system).

      Having said all of this, yes software needs to be a pillar of economic strength for this country. It's important and it's both a driver of our economy and a part of our overall power as a nation. Some of the reforms listed would be very good for the software industry. Finding the things that will help the software industry does not mean we should ignore manufacturing or agriculture, or any of the other pillars of our economy though.

      --
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    8. Re:Oh yes, software by fish_in_the_c · · Score: 5, Insightful

      economies are based on the exchange of goods / services are only part of the economy if they produce goods, because wealth is a measure of accumulated material possessions. So if we all want to have more 'stuff' ... someone needs to do the work to make it.

      The problem with our current economy is 70% of our jobs are in service not production. That is BAD, because basically we keep paying each other money ( aka wealth) that we did not create. It just moves around and the actual creation of wealth is being done overseas.

      --
      âoeTolerance applies only to persons, but never to truth. Intolerance applies only to truth, but never to persons.
    9. Re:Oh yes, software by jeffmeden · · Score: 5, Insightful

      In all fairness, there is a heck of a lot more value in software than in hardware. Hardware is now a commodity, nothing more.

      And in other news, this is one of the very very rare piece of wisdom to make it up the front page of slashdot in a long time. It's like there was a disturbance in the force... Did you feel it too?

      The problem is that in ten years we are going to be reading a headline like "America's future is in project management, not software"... Software jobs "belong here" just like advanced manufacturing jobs "belong here". And there is such a thing as "commodity software", just look at your favorite mobile device's app regurgitation orifice if you think that there is not a market for a thousand programs that really do the same thing. Really good software (just like really good hardware) should stand out from the crowd and that is what we should be encouraging ourselves to make. There is a reason the shiny little widgety things that sell well proclaim "Designed In california, made in [a place where environmental and labor laws are favorable]". It would say "Made in the USA" if we had the guts to actually put up with the production of the things we consume so much of.

      No one is arguing about keeping *every* manufacturing job here, just like they shouldn't waste their wind trying to get every software job to stay here. We should focus on encouraging us to do what we are good at.

    10. Re:Oh yes, software by cfulmer · · Score: 5, Insightful

      Oh, they'll be employed. But, many people will be employed doing things that we'd consider utterly frivolous today, just as today, people are employed doing things that our ancestors would have considered to be utterly frivolous. I have no idea what they will be, but people them will consider them valuable.

      Examples of things our ancestors would have considered frivolous? Computer game design, professional "life coaches" & fitness instructors come to mind, but there are hundreds of such jobs if you think about it. Heck, there was a story on local news about a cat that got a knee-replacement -- there were 10 people involved in the surgery. Can you imagine anybody in the 1950s thinking "Oh, yes, our cat can't walk. Let's get him surgery."?

    11. Re:Oh yes, software by JoeMerchant · · Score: 4, Insightful

      You misunderstand the word software. The software that has the most value in the iPhone is iOS, by far, not any app you can find.

      So, then, of the 300,000,000 U.S. Americans, how many can find gainful employment writing iOS, and iOS like, software? Far less than 1%, I'd guess.

    12. Re:Oh yes, software by AdamThor · · Score: 5, Insightful

      In all fairness, there is a heck of a lot more value in software than in hardware.

      You know why? Artificial scarcity. The more America decides to make it's economy around software, the more software patents we're going to need to set up and defend. Don't Copy That Floppy! I've got a patent on 1-click checkout nobody else can do it! Get used that, if you want an economy based on software.

      And in other news, this is one of the very very rare piece of wisdom to make it up the front page of slashdot in a long time.

      This is a terrible idea. Manufacturing requires tooling and raw materials. And at the end is a physical thing that needs to be sent to wherever it is needed. And that all got sent overseas! All software needs is a computer. Oh, sure, and the knowledge to program it. The USA has an advantage there today, but there's no reason for it to persist. We have a head start over the Chinese, but they're not stupid. They'll have to transition from their cheap labor model to a well-educated labor model to become a software power. That's coming.

      Easier than trying to control ideas (which is all software is anyway), would be to abandon the free trade that has moved out all our manufacturing anyway. Objects are easier to control than ideas. Taxes on imports would bring manufacturing back, and would also cut the power of international corporations over our government. It would be a huge change, and not an easy one. I think we'd be healthier for it though.

      --
      -- "Oh. This guy again."
    13. Re:Oh yes, software by Grishnakh · · Score: 4, Insightful

      Oh please. H1-B has its problems to be sure, but you invalidate your entire argument when you claim that they make $30k; all the research shows H1-Bs usually cost about as much as Citizens do. The initial cost is actually more because of all the sponsorship fees and such, and because there's a lot of openings for these jobs (if there weren't, they wouldn't be coming here). Over time they probably end up getting somewhat less though, since they don't have the ability to change jobs quite as easily at citizens, and that part of the program absolutely should be changed.

      Don't forget that a ton of foreign workers got their degrees right here in our own overpriced universities. Half the people in my EE classes in the 90s were foreigners, and that was undergrad; at the graduate level, almost all of them were foreigners.

  2. Again with the visas by Anthony+Mouse · · Score: 5, Insightful

    increasing H-1B visas for highly skilled coders

    How is increasing the number of workers supposed to decrease the unemployment rate?

    1. Re:Again with the visas by Anonymous Coward · · Score: 4, Insightful

      That is my concern. We have plenty of people ready, willing, and able to code here in the US. H-1Bs usually are gotten because the phrase "the US doesn't have enough skilled workers" usually means "we can't find a CISSP who will work in the Bay Area for $24,000/year." Couple that with "secret requirements", and it is just a lame end run by companies who want US dollars but are otherwise hostile to the nation.

    2. Re:Again with the visas by alexandre_ganso · · Score: 4, Insightful

      More skilled workers means that

      - some of them will eventually be enterpreneurs
      - it's easier to find people for specific fields of knowledge

      More foreign people in that case actually means more jobs for the locals as well, as the economy around it grows.

    3. Re:Again with the visas by anagama · · Score: 5, Insightful

      It isn't just the tech industry under attack. Maybe someone can explain why Chinese contractors and workers are building bridges here?

      http://abcnews.go.com/WNT/video/us-bridges-roads-built-chinese-firms-14594513?tab=9482930?ion=1206853&playlist=14594944

      I'm no "Red State USA1 FUCK YEAH" type of person, but maybe we should start looking into a little bit of economic nationalism. This is anathema to the multi-nationals that own our government though, so we'll just keep importing workers and exporting work till we look like any other third world economy, with a very few controlling all the wealth, and the rest of us eating dirt.

      --
      What changed under Obama? Nothing Good
    4. Re:Again with the visas by MalleusEBHC · · Score: 5, Interesting

      If you can't find a software development job in the Bay Area, the problem isn't foreigners, it's you. As a developer who just switched jobs in the past year, I can tell you that jobs are plentiful. Tech companies are doing well as a whole, and the success of the biggest employers (Google, Facebook, Apple) has put excellent pressure on the market, from an employee perspective. Yes, even considering their no poaching agreement, they're driving up wages across the valley.

  3. Software will be outsourced just like hardware. by Kenja · · Score: 5, Insightful

    It is far less expensive to have a group overseas develop software. Not better, just cheaper. The same economics apply, but unlike hardware there are zero tariffs or import taxes to pay (not that there are many for hardware).

    --

    "Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
    1. Re:Software will be outsourced just like hardware. by oneiros27 · · Score: 4, Interesting

      I've heard some interesting arguments for putting QA overseas, but keeping the main development folks local.

      Basically, the idea is:

      • Your developers work their normal hours, and commit before they leave
      • The nightly build runs
      • The QA team (in a different time zone) does all of their necessary testing, and enters issues into your ticket systems (while the main developers are sleeping)
      • The developers come in the next morning (not having pulled an all-nighter), and check to see what the QA group found while they slept / went to the movies / had a social life / etc.

      I've never participated in something like this, so I don't know if it's a great idea on paper that sucks in real life, but it seems on the surface that it could be useful.

      Of course, you could probably get similar effects by outsourcing to more than one place with sufficient offset in their time zones.

      --
      Build it, and they will come^Hplain.
    2. Re:Software will be outsourced just like hardware. by goruka · · Score: 4, Insightful

      Americans are too egocentric. There's nothing that makes you "the best" at programming software, and there's good and bad experiences with software teams anywhere in the world. As a foreigner, I led and completed several outsourced projects for clients in your country successfully. Doing your job well, so our clients trust us and recommend us to other american companies is the same here as well as everyone else, otherwise software industry here wouldn't thrive as much as it does, and we are not even as cheap as India. Add to that, that high qualty education here is either free or unexpensive, so there is a great amount of supply in highly skilled programmers.

  4. It's all moot anyway.... by forkfail · · Score: 5, Insightful

    ... if we don't seriously fund education for the next generation, and stop thinking we can skimp on that commitment to pay for tax breaks for the rich and extended wars of choice.

    --
    Check your premises.
  5. Re:Defunding DARPA is a good idea by cfulmer · · Score: 4, Insightful

    Says the man posting to a computer on a network whoich started as a DARPA project.

  6. America's future can be in both by Karmashock · · Score: 4, Interesting

    We just need to do away with old labor intensive methods of manufacturing.

    If we mechanize enough then the labor costs become irrelevant and we can bring the manufacturing home.

    To that end, we should invest heavily in additive manufacturing and other technologies that will let us leap frog the competition while rendering their cheap labor irrelevant.

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  7. Re:visas for highly skilled coders by cfulmer · · Score: 5, Interesting

    Should be "You must pay this person slightly above the going rate for software developers where you are," thus taking away the incentive to bring in foreign workers only because they're cheaper, and leaving the incentive to bring them in when you can't find a domestic worker to do the same thing.

  8. Germany - USA by Teun · · Score: 5, Insightful
    How is it the Germans have a very solid manufacturing base and exporting even to China?
    Is it because workers are treated better or is it because they are cheaper?

    How is it that The Netherlands is the world's 2nd. largest exporter of agricultural products in value after the US, is it because the country is so blessed with it's climate and available space?

    I'm convinced the USofA can be a profitable exporter of manufactered goods and produce providing their managers start looking at the long term instead of just this quarters profits.

    --
    "The likes of Facebook and WhatsApp are free to those whose privacy is of zero value."
    1. Re:Germany - USA by NeutronCowboy · · Score: 4, Insightful

      One major difference I can tell you that exists between the US and Germany: scope of thinking. And no, not long-term vs short-term. It's about what people consider success, and what people strive for in business. I'll illustrate it with two small business stories.

      Scene: Munich, Germany. 300 year old apartment building with a shop on the ground floor. The shop is a custom boot maker.... who got started about 300 years ago. It's still the same shop, it still makes custom boots, and it has been family owned ever since it got started. Not always the same family, but it's a family business, and doing well enough to support a family for the last 300 years. The current owner has no interest in expanding, of offering funky colors, outsourcing manufacturing to China, or to establish a brand and open branded stores. He just wants to make boots and support his family doing so. Heck, he still works with custom-built wooden boot molds to make his boots, some of which are as old as the shop.

      Scene: Silicon Valley, USA. A friend is starting an online business. It's very niche, but it's pretty much the only one of its kind, with pretty much a monopoly on the market and an owner who knows the market like the back of her hand. She is talking to one of her friends, who is an architect at a very large, very successful, pre-IPO startup. Who proceeds to tell her that unless she is going to take on loans and VCs and try to take over the world in the next two years, she is just engaging in a hobby and might as well call it quits.

      Guess who is going to be around in a hundred years? My money's on the bootmaker.

      --
      Those who can, do. Those who can't, sue.
  9. Jobs are a necessary evil by DanielRavenNest · · Score: 4, Insightful

    The article assumes more jobs are a good thing. That is a last century concept. How many people actually want to work all day? Most people do it to get the things they really want: food, a decent home, etc. The job itself is a necessary evil, and if they could get the things they wanted without it, they would. We should aim for productivity so insanely high that people don't *have* to work for a living, just like the rich do now. Then the people who actually enjoy doing whatever it takes can take care of the remaining work.

    This is the direction society has been heading in since the start of the Industrial Revolution, and obviously still has a way to go to reach that goal. Once places like India and China get developed enough, corporations will inevitably look for cheap labor elsewhere. These days that is mostly Africa, and a few other spots. Once *those* get developed, there will be no cheap labor left, and corporations will inevitably pursue automation. Who will buy their stuff then, when people get put out of work by automation? Either prices will fall due to competition, or governments will tax the remaining workers and businesses enough to pay basic subsistence for everyone else.

    The alternate route is "home fabrication". Your robot gardener grows the food, the garage machine shop builds "stuff" based on downloaded plans. You still have to do a little work that can't be automated, but can otherwise goof off. It beats commuting and sitting in an office for 10 hours a day. I hope one of the above futures arrives sooner rather than later.

    1. Re:Jobs are a necessary evil by Grishnakh · · Score: 4, Interesting

      Well, it depends how far into the future you go. Garbage collection should be pretty easy to automate really. Right now, my garbage is collected by a big truck that drives along the street and uses a mechanical arm to pick up each container and dump it in the back. The recyclables have a separate truck. We already have driverless cars almost working; making a driverless garbage truck should be easy. Now, if you're talking about dumping out each wastebasket, that can be done with robots; remember the Jetsons had a robotic housekeeper. Obviously, that's much farther into the future than the automated garbage truck, but it's still possible (remember too, back in the 80s, everyone thought we'd have robots like this in just a decade or two; remember the crappy movie "Runaway"?).

      Law enforcement, too, can be automated with robots (this one's even farther ahead than the garbage-collecting robot). Remember THX-1148? Their cops were all robots. And really, society would be much better off with robotic cops too; the human ones do a terrible job, and can't be trusted. Just look at all the police brutality cases, and how the US government is censoring any journalism or video of these. Also look at Singapore: a lot of their cops are Gurkha soldiers from Nepal, because they have a reputation for impartiality, unlike any local people who would be expected to side with their ethnic faction. But most places don't have the practical ability to outsource their policing to impartial outsiders the way a small but very rich city-state can.

  10. Re:Not if theyr'e H-1Bs. by Space+cowboy · · Score: 5, Interesting

    Yes, but an H1-B visa allows you to convert to a green-card after 3 years. It takes a while (took me another 2 years, but hey, the same company that gave me an H1B also paid for the green card, so that was fine by me).

    I'm from the UK, I didn't come to the US for anything much more than the sunny CA weather and the money... The company that now employs me bought my (small) company, and one of the conditions of sale was to relocate to the Bay Area. They really didn't have to twist my arm *too* much, but there's nothing inherently superior or overly-wonderful about the software industry in the US compared to anywhere else.

    There's a few very large and successful companies (more so than elsewhere) and a whole slew of smaller ones (which is the same as anywhere). On the other hand you have to offset:

      - the "police state" trend (even the cops here are far more aggressive than back home, how the cop who shot a handcuffed man in the head on the BART in Oakland didn't go down for murder I'll never know)
      - the TSA. One thing to say: WTF!
      - the fact that there's no universal health system to speak of. Only when I'd lost the NHS did I truly understand what a blessing it is. I get a great health-plan from my employer, but given that healthcare is tied to your employer over here, that's like having a lifesaver vest that dissolves in water... Oh, and it's more expensive than the *real* lifesaver vest. Another WTF! moment
      - the fact that education is so expensive over here. I'm not talking about the "best of the best", even the lowly state schools are ridiculously expensive. My wife (a JD/MBA) has only recently finished paying off her student loans and she's getting towards the harsh end of the 30-40 range. I went to one of the "best of the best" colleges in London (Imperial College, for Physics) and it cost me a grand total of £2500 over 3 years. They paid me £17,000/year to do a PhD, not the other way around.
      - a minor niggle : the low number of public holidays - ones actually *observed* by companies :) and the measly vacation grant.

    Now I've worked off the "golden handcuffs" my employer placed on me, the last stock options are vesting this year, and the housing market is getting to the point where my currently-underwater house is getting back to the black, I think by the end of the year it'll be good to sell. My soon-to-be-born son will be American but have English citizenship by birthright, so I'm thinking we ought to move back to the UK in the next 2-3 years (before school becomes an issue).

    I've paid well over half a million dollars in taxes into the US economy over the last 7 years or so. I'm probably the sort of person the US would like to keep (at least from a fiscal perspective), but the country is on such a destructive spiral, that I can't see any way it'll be a good place to raise a child and retire in. It'll take some sweet-talking to convince my wife (who loves the Bay Area), but I honestly think the US is not a good long term strategy for me and mine.

    I've been asked if I was ever going to apply for US citizenship, and I used to joke that the UK citizenship was my fall-back option. Now I don't think of it as a joke.

    I'll miss the weather.

    Simon.

    --
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