Aggregate Demand

Misguided/misinformed aggregate demand is the root cause of all of the problems that we face in this country, and educated/enlightened aggregate demand is the solution to all of these problems. In order to change or re-focus aggregate demand, we must first identify it, then we must analyze it. Once we understand it, then we can put it to work to achieve our goals.

#1 Challenge: Employment Gap in the Moldmaking Industry

There are a lot of people in the U.S. looking for jobs, and there are more than a few moldmakers looking to hire qualified people. The problem is that the people who want jobs do not have the requisite skills for moldmaking. There are a number of reasons for this skills gap. We should look at this blog as an opportunity for all of us to identify and then accurately and thoroughly discuss these reasons.

Is the compensation offered by the industry sufficient? Is there any reason to believe that the demand for these skills will last? It takes several years to acquire these skills, but the recent demand for them has been short-term. The industry is increasingly technology-driven, not labor-driven. Is the investment of time and money that workers must make worth it in order to train for an industry that has been shrinking and also becoming more mechanized over the long-term?

The aggregate demand angle here is that the global market must demand more U.S.-made molds and molded products over the long-term if we are to support the long-term development of the labor force required to make these products. There is little evidence to suggest that this is yet happening on a sustained basis. If the demand is there, then the jobs will appear and the wages will increase for an extended period of time. This will provide the necessary incentive for workers to acquire the skills and enter the industry. Thoughts?