The American Dream Matters

Most Americans can trace their lineage back to a foreign ancestry. America’s settlers were poor families, adventurers and exiles, seeking a place where they could establish a better life. Millions from dozens of countries have come to America for the opportunity to find work and benefit from the fruits of their labor. They came to provide a better life for their families, an education for their children and to own a home. They came with hope and dreams and anything was possible. For generations, American men and women have worked for a better future. This is the American Dream.

Today, that promise of a better life is threatened. The loss of 5.5 million manufacturing jobs in the last ten years along with another 25 million supporting jobs is taking away the opportunities and promise of America. Brian Hella, CEO of National Semiconductor, said “There is a gold rush taking place in China. It’s a major opportunity, and it’s a major threat if we blow it. And we are blowing it-big time. The great American Dream appears to be moving to Shanghai.”¹

American manufacturing businesses have been especially hard hit. 40,000 US manufacturing plants closed their doors in 2008 alone, putting hundreds of thousands of hard working men and women in the unemployment line. Cheaply manufactured goods coming from foreign countries aren’t helping the US economy. Buying products which will not last long, will require more energy to transport to market, will offer less reliability and safety, while sending our jobs and wealth elsewhere is a losing proposition for consumers and the future of America.

In the book “Manufacturing a Better Future for America,” Ron Hira, the assistant professor of public policy at Rochester Institute of Technology writes, “the United States cannot sustain itself with a finance or service-based economy. Manufacturing is the only way of assuring a better future for America.”²

By supporting American made products, you’re supporting American jobs and companies, and keeping our jobs in our country. Americans have always cherished the right to work for a living, to pursue the same American dream as our ancestors. The US economic demand is more than 20% of the world’s total while or consumers account for nearly30% of the world’s consumer spending power. This gives us great economic power.  Americans must use this power by favoring American made products.  Buy American made products and restore the American dream!

1 McCormack, Richard, (2009) The Plight of American Manufacturing.  In R. McCormack, Manufacturing a Better Future for America ( pg. 8 )

2 McCormack, Richard, (2009) The Plight of American Manufacturing.  In R. McCormack, Manufacturing a Better Future for America ( pg. 11 )

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)

Our Independence Matters

America was founded by courageous men and women seeking freedom and independence. Our forefathers fought and died for independence centuries ago. Immigrants from all over the world re-located here to find freedom, independence and a better life. However, America’s reliance on foreign countries for products, technology, labor, and natural resources threatens our independence.

The US used to lead the world in engineering, research and mechanical design. But since 2004, that title has been lost. Paul Craig Roberts, economist, columnist for Creators Syndicate, and former Assistant Secretary of Treasury, says “The idea is nonsensical that the United States can remain at the front of research, innovation, design and engineering while the country ceases to make things. Research and product development invariably follow manufacturing.”¹

Many have predicted that we would replace manufacturing jobs with technology jobs but with the sharp decline in manufacturing, America loses supporting jobs like research and development. Government spending cannot bail this out. Federal spending for energy research dropped from 5.5 billion in 1978 to 793 million in 2005. The budget for aeronautics research at NASA fell from 594 million to 512 million.

Long standing American manufacturing industries are dying out because they simply can’t compete with subsidized foreign companies. This means more unemployed American workers, more sub-par quality products, and more dependence on other countries to grow and make what we need to survive. “Advanced automotive design studios “are popping up like rabbits in China,” notes Eric Noble, president of The Car Lab, an automotive consultancy. Writes Paul Roberts: “the idea is nonsensical that the United States can remain at the front of research, innovation, design and engineering while the country ceases to make things. Research and product development invariably follow manufacturing.”²

America will lose her independence without the ability to produce what we wear and consume. America’s leadership in technological innovation and manufacturing excellence can rise again if our consumers, who account for 30% of global spending, use our economic clout. Supporting American made products and businesses protects our independence.

1 McCormack, Richard, (2009) The Plight of American Manufacturing.  In R. McCormack, Manufacturing a Better Future for America (pg. 42) 

2 McCormack, Richard, (2009) The Plight of American Manufacturing.  In R. McCormack, Manufacturing a Better Future for America (pg. 52)

Our Security Matters

To protect its citizens, a government must be able to clothe and equip its military. “The Pentagon is growing increasingly worried about the  shift of production capacity offshore, the rise of global supply chains and the movement of research and development to countries that are considered to be potential adversaries. Those working deep in the military complex – the contracting officers having to deal with companies using counterfeit components or who can’t find American companies to manufacture worn-out parts – are especially worried about the health of the US industrial base. These defense contracting officials view the Pentagon’s response to global economic challenges as being inadequate to the crisis at hand. Even more alarming is the demise of the American automobile industry and its impact on the defense industrial base, let alone the loss of a huge tax revenue stream that is necessary to maintain a strong military with more than 700 bases worldwide.”¹

In his article “Globalization and National Security,” James A. Lewis talks about how the US is becoming increasingly dependent on other countries for technological innovations, and how it can become a national security risk. “…Technological leveling and interdependence give opponents new opportunities to seek asymmetric advantages. The emphasis is to avoid direct engagement with military forces. Civilian and economic infrastructures are soft targets that are more vulnerable to asymmetric attack.”

In a documentary episode of CBS’s “60 Minutes,” Jim Gosslar, one of the “Fathers of Cyber War,” stated that most commercial computer chips and processors are now made abroad, overseas, and that there are concerns that foreign governments could tamper with them. “We have found micro electronics that have been embedded in applications that shouldn’t be there, and it’s very clear that a foreign intelligence service put them there.”

To protect our freedom, America must be able to create nuclear warheads, fighter plane drones, and stealth bombers but also to make a hat, battle fatigues or a pair of boots. The best way to restore our economy and keep the country safe from foreign threats is to bring research & development, engineering and manufacturing back to US shores. You can help our security by supporting American made products and businesses.

1 McCormack, Richard, (2009) The Plight of American Manufacturing.  In R. McCormack, Manufacturing a Better Future for America (pg. 52)

Our Planet Matters

The Earth’s ecosystem is something many of us take for granted. Manufacturing in the US, Canada and most European countries is compliant  with clean air, clean water and solid waste disposal regulations as well as reducing ozone-depleting chemical use. In places like China, India and South Africa, there is little to no enforcement to protect air, water and land.

In China, there have been multiple reports of lake water poisoning due to pollution from heavy-metal industries. The crops and wildlife of provinces like Hunan and Guangdong have suffered heavy losses and the people living in these provinces are now drinking contaminated water.

Many environmental organizations are outraged about the heavy pollution going on in these provinces. Ma Jun, director of the Institute of Public and Environmental Affairs in China, says “The secrecy in this industry means companies are less open to dialogue and exchange of information…From our experience, we see that ‘environmental commitments’ of many IT companies is empty talk. They tell us that they have a supplier code of conduct that says that if their tier-two suppliers have a problem, they will work with their tier-one suppliers to solve this. But many don’t even know who their tier two suppliers are.”

Chinese companies produce three times the amount of carbon emissions per ton of steel. The US Steel Industry, like many others, has struggled to compete with companies who receive government support to export and are allowed to pollute.

China has some strict environmental laws on the books, but the fines that may be levied to enforce the regulations are so insignificant that they are seen merely as a cost of doing business rather than a true deterrent. Local authorities that collect the fines will often recycle the revenues back to the polluters as tax breaks. In addition, as with its weak health and safety regime, China’s legal system makes it extremely difficult for pollution victims to properly seek any redress. A major problem with enforcement is that China’s state environmental protection agency is critically understaffed and under-budgeted. While the US Environmental Protection Agency employs close to 17,000, China’s State Environmental Protection Administration (SEPA) had only 300 – this to oversee environmental protection in a country with well over a billion people. Perhaps no one is more aware of the impotence of the China SEPA than its outspoken Deputy Directory Pan Yue who has warned that: “China’s population is so big and its resources so scarce that if we continue to ignore our environmental problems, that will bring disaster for us and the world.”¹

Many foreign manufacturing companies favor faster, cheaper, and less environmentally friendly methods because of the pressure to meet price and delivery demands. Bringing manufacturing back on our shores will lessen that demand, and send a message that may force foreign manufacturers to consider more environmentally friendly methods. Manufacturing companies here in the US must comply with environmental protection guidelines and dispose of waste in a safe, clean way. This compliance increases costs for US-made products which means that you may pay more. But isn’t leaving a clean planet for our children and grandchildren worth it?

Besides these serious concerns regarding manufacturing plants adhering to environmentally responsible processes, consider the fuel consumed to transport goods to our markets.  When we buy products made in our country, a fraction of the oil is burned to get it to you!  So show your support, and help keep our planet clean.

1 Navarro, Peter, (2009) Benchmarking Foreign Advantages.  In R. McCormack, Manufacturing a Better Future for America (pg. 134)

Our Jobs Matter

Over 5.5 million manufacturing jobs have been lost in the US in the last decade. This has a “rippling effect” of four to five other jobs lost. That means, in total, there have been some 30 million jobs lost. In the last six years, over six million jobs have been outsourced. Many American factories have closed their doors and laid off their workers because they could not compete with lower cost producers. Many others have moved jobs offshore to survive and compete with lower-priced foreign made alternatives. Some have downsized to cut costs and survive in the face of reduced orders.

This year and last year combined have been the worst years for jobs since World War II. Jeff Faux, economist and founding president of the Economic Policy Institute, explains “With NAFTA, the World Trade Organization, and other trade deals of the last decade, American corporations are now tapping into a global supply of workers who can be trained to do everything from design to production, maintenance to marketing.” From 1993 to 2003, the US-Mexico trade balance went from a US net positive of $4.9 billion to a US net negative of $40.6 billion.¹ America’s merchandise deficit with both Mexico and Canada reached $95 billion in the same period while the US textile and apparel industry saw a loss of 740,000 jobs! The playing field is even more unlevel when we try to compete with China where labor rates are roughly $1.00 per hour. But the wage differential is only part of the story. Tax incentives to export and currency manipulation may add another 40% advantage to China factories according to many estimates.

It’s not just manufacturing jobs that are in danger. If you are a technician, IT specialist, research scientist, or engineer, your job most likely can be performed by someone overseas at a significantly lower wage. Scientific groups have been warning the US that it will lose its research and development capabilities if they lose the manufacturing industry, and they were right. Now many of the innovative research and technological breakthroughs take place in China, leaving American scientists and engineers behind.

Susan Butts, the senior director of external sciences and technology programs at Dow Chemical, said “the federal government can fund all the R&D it wants but if the United States innovation system discourages an invention from being manufactured in the United States, then American industry will not generate the taxes that fund the federal investment in research.”2

Today, American workers have to fight to keep their jobs. Only about 11 million people still make things in the US which is the lowest since 1941.  American producers cannot compete on price but we can still compete on quality, safety, service, durability and speed to market. American workers and companies recycle money back into our economy and our consumers must realize this. If you want to keep our jobs on American soil, support American made products and companies.

¹ Lovett, William, et al, US Trade Policy: History , Theory and the WTO, “US Trade History.” By Alfred Eckes, page 130.

2 McCormack, Richard, (2009) The Plight of American Manufacturing.  In R. McCormack, Manufacturing a Better Future for America (pg. 11) 

Our Local Communities Matter

Do you remember that old barber your dad used to take you to get a haircut? Or that old grocery store on the corner of the street where they always had your favorite soft drink or candy in stock? If you’re feeling nostalgic and look back on all the good times you and your friends had hanging out at that store, you have to wonder what ever happened to those neighborhood small businesses?

The sad truth is that local businesses are slowly disappearing from the American landscape. These local businesses may not seem like much, but for centuries, they have been a critical part of the US economy. Local businesses recycle money back into the local economy. Their taxes and the income taxes paid by their employees pay for government services, our military and help repay the US national deficit. Local businesses and farms provide a “ripple effect” which impacts more American jobs that provide them with supplies and goods for resale and services like utilities, waste removal, banking, legal and accounting. Small businesses, including local manufacturers and retailers, employ more people than large companies historically and build communities and support local medical professionals, teachers, police and fire fighters.

Local manufacturing, as an example, creates four to five additional jobs for every one job. Manufacturing requires support for research, other component suppliers, packing suppliers, caterers, bankers, accountants, lawyers, waste disposal, equipment and parts suppliers, engineers, computer services and utility suppliers, and that’s just to name a few. Local charities, community groups, religious and athletic organizations are, in part, supported by these companies.

Supporting local businesses and buying American made products keep our communities strong and will more rapidly help our economy recover than any other measure. Lee Leffingwell, the Mayor of Austin, Texas says “When you have a lot of small businesses, you have a lot of inherent diversity, and that inherent diversity helps insulate you from the economic downturn.” Local businesses often provide more personal and attentive customer support and are more likely to give back to the community because they live there.

Paying more for the product made locally may actually be a far better investment. So next time you’re going shopping, why not keep that old local hardware store from your childhood in mind, and support a local business?

Our Safety Matters

Based on data from the US Department of Agriculture, after years of being the world’s top food producer, the US is about to become the top  food importer.

Why does it matter?  Well, besides our jobs, our economy and our independence, our safety matters!  On September 4^th, 2007, there was a massive recall of canned chili, stew, hash, and other canned products from Mexico due to a potentially fatal botulism contamination. In March of the same year, there was a recall of various brands of pet food from China that had been poisoning and killing animals. In July of 2010, Ready Pac Foods and other produce companies were forced to recall imported products containing baby spinach that had been infected with a malevolent strain of the bacteria E. coli, which is known to cause serious health issues, including salmonella and dysentery.

Many food processors package under a variety of labels, so it’s difficult to track all these health risks back to those responsible. And it’s not just food that’s being produced elsewhere with safety concerns. In 2008, hundreds of patients were poisoned by heparin, an anti-clotting drug, made from ingredients in China. The FDA, has only two agents in China and are only able to inspect 11 percent of the factories.

Caroline Smith DeWall, director of food safety for the Center for Science in the Public Interest, says “If people cannot trace a product back to a supplier, the supplier has no incentives to keep their processes as clean and effective, in terms of food safety, as possible.”

In August of 2007, there was a massive recall for over 900,000 toys from Mattel, one of the most well known toy makers, dealing with products like Barbie dolls, spell-with-me Elmo, and Dora the Explorer backpacks. The reason for this massive recall was that studies found that the paint used on these products contained lead, which can be harmful to small children. There was another recall for the same reason in 2009. In the US, lead based paint is considered a toxic substance, and is illegal to use. However, this is obviously not true for some foreign manufacturing plants. Small children exposed to lead based paint can suffer long term effects like permanent brain damage and a steady decrease in IQ and reasoning skills. Title I, of the Consumer Product Safety Act of 2008, states that “any children’s product of the Consumer Product Safety Act that contains more lead than the limit established by paragraph (2) shall be treated as a banned hazardous substance under the Federal Hazardous Substances Act.” 

In addition, there is great concern that drywall produced in foreign countries can also be hazardous to the health of home owners. This is especially true in Washington and California, where there have been cases of hazardous air-born chemicals coming from imported dry wall.

Supporting American made products means you support the health and welfare of our people. It means testing and adherence to safety standards for toys, food, building materials, appliances and other consumer goods.

Show your support of American made and grown products, and help us keep our families safe.