Our Economy Matters
The US budget deficit continues to grow as does our trade deficit. The US trade deficit for 2010 should finish close to $500 billion. An ongoing trade deficit will damage any economy because trade deficits are financed with debt. In 2009, the US trade deficit of just consumer products was $103 billion. This includes clothing, consumer electronics, household goods and furniture.
According to Erskine Bowles, of President Obama’s National Commission on Fiscal Responsibility & Reform, if the US government does not make changes soon, by 2020 it will be spending $2 trillion dollars per year in interest alone. “Domestic manufacturers and producers have grown increasingly frustrated with economists who for decades have rationalized manufacturing job losses as being good for the economy. Manufacturers argue that the federal agencies, the administration and congress – Republicans and Democrats alike – have been negligent in their stewardship of the economy. The United States is not generating enough wealth to pay its mounting and massive debts. Cheap imports made in unsafe, low-wage factories overseas are not improving the fortunes of America’s least fortunate, much less its middle class. The US trade deficit in 2008 stood at $700 billion – or about $2,000 for every American.”1
For every $1 that US manufacturers spend, another $1.40 of economic activity is created. This multiplier is much greater than any other sector of our economy. Without American citizens making products, and companies and workers recycling the money back into our economy, the US won’t be able to pay its massive debts to other countries much less meet the needs of its citizens. Health care, retirement, housing, and insurance are can all benefit from taxes and investments coming from American workers in American factories, labs, and offices.
This country’s legendary manufacturing industry is running out of time. As factories close, machines are scrapped or sent to low-cost producing countries. When this happens, the knowledge and skills that American manufacturers have refined throughout the years are lost. The effort and money required to start up new factories or re-open closed plants is difficult to justify, meaning these jobs might be lost forever. “Time is not on our side and by allowing the continuing erosion of this country’s manufacturing sector they are selling our future,” Dan DiMicco, President & CEO of Nucor says. America’s infatuation with “every-day low prices is costing the country more than $2 billion a day. It is time to stop this madness. We kowtow to special interests. We play geopolitics. We are a slave to a discredited free-trade theory in the face of reality. We lack the will to change. In short, we have lost our minds.”2
But you can help save jobs and kick start our economy before these factories shut down forever. Buy American made products and help keep American jobs and American money in America.
1 McCormack, Richard, (2009) The Plight of American Manufacturing. In R. McCormack, Manufacturing a Better Future for America (pg. 4)
2 McCormack, Richard, (2009) The Plight of American Manufacturing. In R. McCormack, Manufacturing a Better Future for America (pg. 9)