During the Ohio Senate race debate both candidates agreed on one topic. They both agreed that bringing jobs back from China is a great thing. Here’s the problem with doing that today. The Chinese are paid for the day’s work what our workers will get in a little over an hour. Chinese labor has gotten so “high priced” that work is being outsourced to Vietnam and Africa.

            Now when we re-shore those jobs the price of those items must increase, sometimes greatly. The Federal Reserve raises their rates to combat the wage inflation. Raising rates causes the buyer to think twice before buying a company’s more expensive product since the competition’s product is still made in China or Vietnam.

            It was easy to put American workers out of work and start production in China, thus lowering prices and the inflation rate. Reversing that trend is called inflation. Those rising prices means labor wants more money so they can continue to buy what they had been buying causing more inflation.

            The obvious question, is re-shoring a good idea? Obviously it is but it will be unsettling to the economy as the Federal Reserve raises interest rates. Their economic programs can’t be updated to account for supply conflicts, sanctions, Ukraine War, and Politics. We have so many transitory problems their outdated programs are just making inflation worse.