>Manufacturing is the core example of path-dependent advantages, because (unlike what any econ 101 textbook teaches), marginal costs decline with increasing production quantity in the manufacturing sector. This means the more you make, the better you are at making more things!
Looking at how Apple said it would be impossible to get US chips, so much this. It needed a lot of investment to onshore chip production again. And we should onshore more high value manufacturing to keep the supply chain working in one place.
The EU has been better at keeping manufacturing competence, but I see a lot of these short term comparative advantage econ 101 ideas taking over in the EU as well.
Looking at how Apple said it would be impossible to get US chips, so much this. It needed a lot of investment to onshore chip production again. And we should onshore more high value manufacturing to keep the supply chain working in one place.
The EU has been better at keeping manufacturing competence, but I see a lot of these short term comparative advantage econ 101 ideas taking over in the EU as well.