Make American, Hire American, Buy American
The Big Q: What has the decline in American manufacturing meant for the average American?
The Big A: 1. America eventually became poorer, and saw downgrade of its standard of living. As progressively more manufacturers moved abroad, the flow of money out of the country exceeded the benefits of cheap imports. At some point. If this trend were to continue, Americans will not be producing enough to pay for the standard of living that post-World War II America has become used to. 2. If one is not among the rich and relies on a job, there are job security issues. Meaning, if you worked in the manufacturing industry, you saw little to no raises and you job likely got outsourced, and the days when blue-collar work could be passed on down the family line, well those days ended.
By building their factories overseas, manufacturers sowed the seeds of their own long-term destruction by slowly reducing the wealth of Americans, their primary customers.
Understand that every time an American manufacturer closed and then reopens offshore, the foreign country gained American technology, foreigners did not have to compete to get it, they focused on improving it.
For a long-time now, Asia has recipient of outsourced American manufacturing. A study by the Universities of Cornell and Massachusetts-Amherst found that India alone is responsible for a million or more outsourced jobs. China too has also received hundreds of thousands of outsourced jobs.
Admirers of globalization, as in previous administrations, believe that freer access to foreign markets and cheap labor increase corporate profits and thereby benefit the US economy.
This argument sounds compelling on the surface, but it ignores the dangerous long-term effects of manufacturing losses. In reality, outsourcing makes Americans poorer over time, because America’s wealth and technology migrate to other nations.
Historically American manufacturing, exporting and direct investment produced prosperity through income creation. Its wealth grew when profits from domestic manufacturing were reinvested into buildings, machinery and technological change. But outsourcing diverted that income to foreigners.
Sure, America gain access to cheaper products through outsourcing, but it came with problems, not the least of which was downward pressure on wages. Laid-off manufacturing laborers switched into much lower-paying jobs in the service industry.
If America does not manufacture and sell goods, then money leaves the country.
The US now imports much much more than it exports. And is dependent on foreigners for critical ingredients, products and equipment, as is being enlarged by the attack on the US and the world by the Chinese Virus, aka COVID-19 coronavirus.
“This is being magnified by the attack on the US and the world by the Chinese Virus. Unfortunately, contrary to America’s policy of self-sufficiency, the pharmaceutical industry now gets 70-80% of its base materials from China, who has stated that they will/ are holding America hostage for these critical ingredients.
“Congress must do what our President did in the energy industry where a reversal on foreign oil dependence was accomplished for we are now an exporting nation and no longer dependent on imports. Congress should forced companies whose products are dependent on foreign sourcing to bring their product manufacturing back to America or pay burdensome fines,” said Bruce WD Barren, Chairman, EMCO/Hanover Group in a telephone interview Friday afternoon.
Make American, Hire American, Buy American
President Trump’s policies on bring that lost manufacturing home and creating good paying jobs is the right policy.
He is confident that Americans will learn how work in and excel in the transition to robotic and computer aided flexible manufacturing,
His backing of free trade school education, and demanding that students be responsible, and pay back not default on their loans all play into Making and Keeping America Great!
Have a healthy weekend, stay home.
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