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That spending creates demand for goods, causing factories to hire workers to assemble automobiles, staff hotels and churn out linoleum.
THREE decades ago a Conservative government led by Margaret Thatcher removed many of the props that had supported manufacturing, revealing its weakness and causing factories to collapse.
He imagined that his embargo would wreak financial havoc, causing factories to close and throwing thousands of laborers out of work — and that, to save the world financial system from collapse, the British government would have no choice but to help arrange a cease-fire, or, better yet, join the war against the Union.
Rising labor and real estate costs are causing factories to move to China's poorer neighbors like Vietnam, the countries that, unlike the U.S. and Europe, are truly hurt by a weak yuan.
"The construction of this remarkable new nation by private money provided years of economic boost for Detroit and Southeast Michigan, and the sparks generated by the fires of 'can do' optimism and a new social pact jumped the river, causing factories and farms to be built in Detroit, restoring it to its former glory".
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As U.S. consumers have cut spending, raising the personal savings rate to 7% of GDP, China's exports have dropped by 20% or more, causing factory closings, unemployment and social unrest that threaten political stability.
A decline in orders -- usually as a result of a falloff in demand from consumers and businesses -- can cause factories to slow production.
In recent days, manufacturers, retailers and farmers have increasingly called for a cooling-off period, warning that the shutdown has caused factories to close and produce to rot.
With some suppliers complaining that the company has bullied them, Wal-Mart has caused factories from South Texas to Shanghai to increase efficiencies continually and to lower their costs and prices.
Manufacturing declined in September for the second consecutive month as orders slumped to a two-year low, a sign that higher borrowing and energy costs caused factories to cut back.
The impact on the local tree population is significant enough to cause factories to close while foraging for wood supplies.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com