MADE IN AMERICA 2

                                      MADE IN AMERICA Part 2

“Made in America”…At one time these 3 proud words could be found on the majority of the highly quality and big ticket products that most Americans purchased. Made in America gradually became replaced with “assembled in America”, and then made in “xxx” (as in some other country). Back in the 50’s and 60’s the United States was an export powerhouse with a substantial trade surplus.
When I was younger, items made in places like Japan, China, and Taiwan were known for their poor quality and cheap prices, not any more. These other hungry economies have ramped up their people and manufacturing skills to the point where they can turn out high quality, first tier products at very competitive pricing.(some can even charge a premium price over ours) Over the last 20 years, American manufacturers have bowed to the superior quality and pricing of overseas competitors, and one by one they have closed their doors and exited previously profitable markets.
I think we have lost our way, as we have forfeited most of our manufacturing to overseas suppliers.(and with it, our manufacturing jobs base). We initially gave up small dollar and labor intensive products, but have since lost our capabilities in everything from steel to durable goods such as Televisions and refrigerators.
We were once the world leader in auto and aircraft manufacturing and are now relegated to a distant 3rd. Even American owned car companies are building and assembling their products overseas, due to reduced labor costs, tax advantages, and economic incentives. The American worker has turned his back on good old fashioned manual labor.(There is a feeling that this type of work is somehow beneath us) Everyone wants to be a computer nerd or white collar executive, no one wants to get their hands dirty. Somehow we figured that everyone needs to be rich to enjoy the American way. The truth is that not everyone needs to drive a Mercedes convertible or carry a Gucci handbag to be happy. There is nothing wrong with a pickup truck and a pair of wrangler jeans.
I will readily acknowledge that we are competing in a world economy, but it’s important to admit that we are losing the competition. We’ve lost more than sales by outsourcing our products, we have lost profit, jobs, and even the independence of not having to go to foreign sources for the products we need and rely on. We have built a reliance on other countries for our core supplies.
When we began picking and choosing what items we would make here and what items we could buy cheaper overseas, we start down a slippery slope. Starting off with humble beginnings foreign manufacturers have made giant in- roads into American consumer and business products.
I still believe that all things being equal, American consumers would still prefer to buy American made products. However there is no way American consumers want to pay more for a product of equal or less quality than they get from an import. Our factories are sitting ideal, our workers unemployed. Our demand and willingness to import the products that we need and want, tends to flow net dollars out of the United States instead of into our country. This resulted in a monthly net trade deficit of 32 billion in July of 2009 alone, and over 711 billion in a year. That means our hard earned dollars and cash flow are leaving the Unites States at an unprecedented rate. Not a good sign for our economy.
Today it’s harder to find things made in the good old U.S.A. than it is to find imported items. Even items that have been traditionally associated with being built in the U.S. are now made overseas. (Caterpillar equipment for example) We have tipped the scales deeply towards a deficit trade imbalance. In addition to products that are not price competitive we have burdened our manufactures with hideous income tax implications as well as payroll and health care cost burdens.
Surprisingly we have even turned our purchasing abroad for items needed for our own national security. We buy weapon systems and technology from others, or whoever is the lowest bidder. Even the standard issue firearm that our soldiers depend on, is not made in the U.S.
Couple this dependence with our need to import oil for energy and we weaken our position in the world, both economically and militarily.(strategically). A country that doesn’t produce its own durable goods is a paper tiger. Our own natural energy resources have not been fully developed and we also have not built any new refineries in years. Also, by dismantling our industrial capabilities we put our self in a position not to be able to gear up our military hardware in case of war. In previous wars we converted car plants to making tanks and aircraft.
Science and technology are great, but a superpower needs to also have an industrial base, and ours is eroding quickly. The notion that hard work or factory work is somehow dirty or beneath us, is destroying this country. Environmental concerns although valid, have been thrown in place before suitable alternatives have been developed.
As for me, I want “Made In America” to mean something again. It means our factories will be state of the art, profitable, and productive, and so will our people. It means world class products and fresh ideas, which can compete with quality and value on a global scale. It means economic security as well as national security. We need to become self reliant for our basic needs. This country cannot afford to be dependent or held hostage by any other nation to obtain our energy and core product needs. Made in America, means a stronger America.
Now is the time to act, because change takes time. The government should step in with more aggressive tax incentives for both manufactures and consumers of American products. I’m wondering, in 2020, when someone in a foreign country sees the made in America tag..What will it mean to them?
I want to see foreign currencies flowing into the United States, that are not tied to a loan they are making us. And finally I’d like “Made in America” to be something we can all be proud of. American companies need to manufacture their products here, not just have their head quarters here. The concept should be like a strong magnet that draws people, talent, companies, and money from all over the world to our shores. It’s time to roll up our sleeves and get to work.
Wake Up America…

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P.I.B.