President Trump and his powerful economy are helping to create a more efficient America. The President’s “Hire American” economy is pushing companies to boost productivity with better software, faster robots, and more machines, while creating better jobs for American workers.
The companies use the investments to make the employees more effective, which frees up the savings, which then allow for the companies to provide their employees with wage raises and higher stock-values for investors.
This excerpt is from an article by Reuters on the matter titled “U.S. companies facing worker shortage race to automate.”:
“The attempt to save money through technology does not come down to just installing more robots in factories. Instead, companies appear to be confronting the lack of low-cost workers by investing in software and machines that can perform tasks ranging from human resources management to filling prescriptions.
Those investments are helping keep wage growth in line despite historically-low unemployment. Average hourly earnings were unchanged in October despite the unemployment rate falling to 3.5% from 3.7%, while the annual increase in wages fell slightly to 2.9%.
Overall, companies have discussed automation on quarterly earnings calls more than 1,110 times since the beginning of the year, a 15% increase from this time last year and nearly double the mentions by this time in October, 2016, according to Refinitiv data. Corporate orders of robotics alone rose 7.2% over the first half of this year compared with 2018, totaling $869 million in spending, according to the Association for Advancing Automation.”
The investment options created by the increase in earnings are essential in creating wealth for investors and workers alike, leading to impressive growth of the nation’s economy.
The gains in productivity are also in large part providing higher quality jobs for Americans, who are receiving better pay for more fulfilling work.
Advocates for reduced immigration have long predicted this trifecta goal of rising wages, profits, and productivity. Trump is proving them right.
However, most business groups prefer to maximize wealth for shareholders by simply adding migrant workers so they can cut wages and investment spending.
Without low-cost illegal immigrants readily available to slash American employee wages, the companies are forced to adapt, which is why Trump’s immigration policies and the enforcement of them are so crucial to the nation’s economy.
Trump has ensured a shortage of workers by repeatedly rejecting demands from business groups for more unskilled and more skilled workers.
Trump’s “Hire American” policy is instead forcing companies to hire Americans— and create more skilled workers out of them, while automating unskilled work by giving them better tools in kitchens, warehouses, factories, and office parks.
Economists have had concerns regarding potentially slowing annual growth in productivity since the turn of the century. However, they are often willfully ignorant to one of the root causes – excess labor supply brought on by open border migration.
A March 2017 report by McKinsey admitted “a shift in the composition of employment in the economy toward lower-productivity sectors” contributes to the problem, but then quickly changed the subject.
Under the current White House, optimism has resurged on productivity, and economists are feeling that if things continue down this path, recent growth may become more a lasting trend.