Elitist economists and business schools sold the United States down the
river. Several years ago they kept repeating the mantra that the "United States
is becoming a service economy". The old adage is if you keep repeating something
over and over people begin to believe it...and they did. While service was
surely destined to increase, to suggest that manufacturing was going to go away
was ridiculous. The core strength of America since the Industrial Revolution has
been manufacturing. We are blessed with raw materials, rivers and transportation
systems, and a huge market for goods right here in America. Under the right kind
of leadership we have the best workforce in the world. Look around you and you
see "things". These include automobiles, furniture, computers, appliances,
sporting goods, clothing, and all kinds of household goods and necessities. All
these things have to be manufactured and manufacturing is the core strength of
our nation and our economy.
Nations that make things are winners. Nations that only consume things are
losers and become dependent.
In many cases the reasons for companies to manufacture elsewhere in the
world, or to buy goods from foreign countries, were based upon false economics.
Manufacturing is much more than dollars per hour wages. Raw materials have to be
imported into many of these foreign countries. Productivity, quality, and the
cost of poor quality have to be considered. The cost of importing goods to the
huge markets of the United States and Europe have to be considered. And
more.
The United States not only loses by not manufacturing right here in our
country, we begin to lose in such vital areas as research and technology,
invention, process technology and innovation, basic manufacturing know how,
marketing, inventory management and distribution, and more. We also lose greatly
by not having the financial benefit of exporting our goods to other countries.
By giving up manufacturing we become a dependent nation, and in some cases
dependent upon goods that are vital for our national defense.
As we sleep, China has now eclipsed the United States as the leader of the
global economy and is a major economic power producing $17.6 trillion in goods
and services (IMF). They are the largest economy, manufacturer, merchandise
trader, and holder of foreign exchange reserves ( Congressional Research
Service). Fourteen years ago the US was ahead of China by a ratio of 3 to 1. The
United States owes China a whopping $1.27 trillion. When economists and the
media report that the Chinese economy is in trouble, they are dead wrong. They
manipulate their currency so as to enhance their trade position even further.
Their interest rates are at about 4.6% right where it should be. Inflation is
running at a healthy 1.4 to 2 percent. The US would die for their GDP which is
running about 6.8%. Practically everything we buy today in the United States is
"Made in China". This is extremely unhealthy. Before President Clinton left
office in 2001 he gave China perpetual Most Favored Nations trade status with
the United States leaving our door wide open where before this would be reviewed
on an annual basis.
In the mid 90's China mysteriously obtained US nuclear and secret high
level weapons technology; rocket, missile and space technology; encryption and
military logistics technology, and more. China is now on an accelerated path of
outdoing the United States militarily and with space technology while we are
"hitching a ride" on Russian spacecraft.
Not only is it critical for our economy for the United States to bring back
our core strength of manufacturing to our country; it is critical to our
national defense. We need to see "Made in America" on most of our goods. No
single step would bring back our economy and our position of world leadership more.
The betrayal must end.
