- Posted February 2, 2009 by
Cedar Creek, Texas
This iReport is part of an assignment:
Surviving a tough economy
ECONOMIC STIMULUS? Bring the "lost" jobs back!
ECONOMIC STIMULUS? HOW ABOUT GIVING AMERICAN CORPORATIONS 5 YEARS TO BRING THEIR FACTORIES BACK TO THE USA?
The experiment of "global economy" as it is practiced today has failed and just could be the cause of the worldwide economic despair.
I am not opposed to trade with other countries and regions when that trade involves something that a country cannot manufacture within it economic and geographical borders. Manufacturing products utilizing a nation’s “economic and natural” resources, from fabrication to consumption, appears to me, to be an essential successful business cycle.
There are some finished products, of course, which have to be made outside of nations ability. If a nation, any nation requires a component for its product, which cannot be obtained within the confines of its own borders, then I think it is correct to import that component. But if an economy can produce a product from raw materials found within the borders of that nation, the product should not be imported just because raw materials and labor are cheaper in another place.
Example: Shoes, let’s say, are made mainly from leather and rubber. The USA has the raw material, leather, produced as a by-product of the meat industry. However, rubber, as far as I know, does not occur in the United States, and has to be imported. I know we have synthetic rubber, but for the sake of the example, lets say we must use natural rubber. The rubber should be imported and the shoe manufactured, with local leather, in a factory in the United States.
Today entire items are being manufactured by American owned corporations, (who formerly made the products in the U.S. using local materials and local labor) which have moved their entire operation to another country for less expensive raw materials and labor.
The USA has become a nation of consumers rather than producers and we have come to rely on income from service industry trades. We also export more raw materials than export finished products, which is an established hallmark of a “third world” nation.
The vast majority of the items you find at “big box” retailers are made in other countries at lower costs. But if the consumers are only service industry employees, and there are not enough jobs to go around, they have no manufacturing to fall back on.
I have not heard one politician, let alone the new President, talk of compelling those manufacturing jobs, to return to America. We only hear talk of creating “new" government jobs to repair infrastructure and some non fossil fuel energy generating methods. No mention of returning consumer electronics, TV, toy, shoe, clothing and on and on, manufacturing to the United States.
Today Communist China, due to the failed present "global economic model,” is more productive as U.S. corporations move their operations to China in search of lower overall costs. China has economic problems as well because it is missing the “consumption” leg of the chair, since it manufactures products the Chinese workers cannot afford.
The argument "products made by American workers would be too expensive" is a poor argument in that if workers are paid more to manufacture a product, they can pay more for the item. Wages will reflect the cost of goods and vice versa. The manufacturing/consumption “circle” will level the cost to produce and the cost to consume.
I am not an economist, just an ordinary citizen that cares about the country and is concerned it just might go bankrupt. Does borrowing money from the Chinese and other foreigners, so we can purchase items made in China, etc., at the local big box retailer make any sense? We are now borrowing money to pay interest on money we borrowed. Does that make any sense? The USA has become the largest debtor nation in the history of the world and that can’t be a good thing.
The manufacturing and the jobs that go along with it must return to this nation if we are to survive. What if China stopped exporting finished products to this nation? Could we retool overnight? Probably not! This makes us essentially “hostage” to other nations. We complain about our “addiction” to foreign oil and how important it is to change this model. Why then is it off limits to demand getting off our “addiction” to foreign made commodities?
The best answer to our present economic earthquake, politicians can come up with is to borrow more money and create some new industrial army to repair the nations "crumbling infrastructure" and create "green jobs" to get us off foreign oil. Remember when Independent Presidential candidate Ross Perot talked of the "giant sucking sound?" The jobs have been "sucked" and now our economy “sucks.” How about “sucking” those jobs back?
I think 5 years would be a reasonable length of time for American corporations to reopen factories, retool, and hire American workers to manufacture products from start to finish in the USA.
I have sent this missive to our Congressional Representative and am awaiting an answer.