Tuesday, February 21, 2012

The Real Problem With U.S Manufacturing



Hello and welcome to the Think Tank

It has been a few years since I have posted on this site but I am now remembering its purpose as I go through college and believe that if there is ever a need for Americans to think, it is now. There must be a voice of thought and clarity within our modern age of distraction, and I believe that this site can aid in the cause. Today's subject is manufacturing, and how, mostly, our politicians are not being very straight with us as to why manufacturing seems to be such a weak point in the American economy.

I write today about U.S Manufacturing. I have been reading a lot of misinformation in the news about this subject and America's "official" stance. Every political candidate from Santorum to Romney to Obama are trying to be champions of manufacturing. Robert Reich wrote in this article from the Christian Science Monitor about how the Republican Party has embraced the idea that we need to get manufacturing jobs back in America. Coincidentally, so has the Democratic Party. The funny thing is, that while they make promises and tell us that they will do everything that they can to “fight for American manufacturing” (Rick Santorum) or show off tax cuts granted to Americans and small businesses, like the ones on Obama’s jobs and economy page, both parties are not addressing the real problem.

There is a general belief amongst us Americans that our manufacturing economy is in steep decline. This is all part of the whole China is a big threat belief, and that we need to go back to the glory days of the 50’s when America was a glorious superpower defending the world with its manufacturing based economy. There is one thing “wrong” and one thing “right” about this theory. The thing “wrong” about it is that profit-wise, American manufacturing is not dead and is not a lot of trouble. There are numerous articles that discuss this in detail and explain that, really American manufacturing is still posting massive profits, has led us to the possible end of the tunnel in of the recession and remains “remains the shining star of the U.S. economy,” (Mark Perry). But there is still a very large disconnect between the stability of U.S manufacturing and our perception of it. Here is where the thing that is “right” comes into play. Americans believe that manufacturing is in decline because, for the average worker, it is.


Manufacturing has seen massive increases in productivity while wages have remained stagnant. At the same time, manufacturing companies are posting record profits, largely, without any government assistance. The problem with the plans proposed by our presidential candidates is that they are helping the wrong people. The citizens in the U.S do not need bigger tax breaks for manufacturers, the average citizen needs a real wage increase. We need leaders in this country that recognize that the average American is overworked and underpaid.

And do something about it.

THINK.

Post comments, arguments below.

1 comment:

Megan said...

Really curious as to what that something would be...I've always thought that the problem with the American perception of manufacturing is, in addition to what you've mentioned, the fact that we just don't need as many people to do what we need to do. Basically, our work is not only being shifted overseas, it is also shifting to more knowledge based work (which I believe will eventually be shipped overseas).