Billy, this sounds like something you would appreciate... http://growth.newamerica.net/publications/policy/america_needs_a_manufacturing_strategy
Begin forwarded message: > From: New American Contract <[email protected]> > Date: February 3, 2010 12:04:12 PM PST > To: [email protected] > Subject: America Needs A Manufacturing Strategy > Reply-To: [email protected] > > > America Needs a Manufacturing Strategy > > Talking Points | February 3, 2010 > > In President Obama's meeting with Senate Democrats today, Senator Sherrod > Brown (OH) pressed the president on why the United States does not have a > manufacturing policy. Senator Brown was right to raise the question. > > First, manufacturing is critical to the economy. > > Largest multiplier. Manufacturing has the largest multiplier of all sectors > of the economy. Every dollar in final sales in manufacturing products > supports $1.37 in other sectors of the economy. By contrast, the financial > services sector generates only about 50 cents for every dollar of activity. > > Productivity powerhouse. Manufacturing productivity consistently outpaces > productivity growth in other sectors of the economy. Between 1997 and 2005, > multifactor labor productivity in manufacturing grew at an average rate of > 4.6 percent per year. This was 60 percent greater than in the private, > non-farm economy as a whole. > > Good wages and benefits. Today's manufacturing employees earn higher wages > and receive more generous benefits than other working Americans. On > average, manufacturing employees earn 23 percent more than workers in other > parts of the economy. > > Diversified employment. Manufacturing employs workers at all skill and > education levels. For non-college educated workers, manufacturing is a > crucial source of good, often highly skilled jobs that pay above average > wages. On average, non-college educated manufacturing workers made $1.38 per > hour (or 9.2 percent) more than similar workers in the rest of the economy in > 2006-07. Thus, manufacturing helps to reduce income inequality. > > Source of innovation. The manufacturing sector is of vital importance in > maintaining our innovative capacity. Manufacturers are responsible for more > than 70 percent of all business R&D, which ultimately benefits other > manufacturing and non-manufacturing activity. > > Key to an improved trade balance. An increase in the production of > manufactured exports and import-replacing goods in the United States will be > necessary to bring down our trade deficit to sustainable levels and to reduce > America's international debt burden.. > > Critical to other high value-added sectors of the economy. The maintenance > of a strong and vibrant manufacturing sector is essential to other high > value-added sectors of the economy, including design, telecommunications, and > finance. > > Second, the Great Recession has exacerbated worrying trends in manufacturing. > > We are shedding jobs in the manufacturing sector faster than many other > sectors of the economy. This is in part because of strong productivity > growth, but it is also because we are downsizing our manufacturing capacity > during the recession while other countries have a policy of maintaining > capacity and employment. > > In the absence of a manufacturing policy, manufacturing output as a > percentage of U.S. GDP will continue to decline, as it did over the last > decade. > > The U.S trade deficit will continue to balloon. > > And the U.S. share of world manufacturing will decrease as it has since 2001. > > This calls for a strategy to strengthen American manufacturing. > > Because of its importance to the U.S. economy, and because of these worrying > trends, we need a strategy to strengthen manufacturing across a wide range of > industries and product areas not just in the newest green technologies. Such > a strategy would aim to lower the cost of doing business in United States > while providing companies with the essentials for success. At a minimum, it > would: > > Infrastructure. Provide businesses with a world-class infrastructure suited > for higher-value production and advanced business services by increasing > public investment. > > Low-cost energy. Reduce the cost of domestic energy and materials by taking > greater advantage of the efficiency revolution, and by encouraging the > expansion of the supply of natural gas, which is a principal energy source > for American manufacturing. > > Training of skilled workers. Address the shortage of certain skilled workers > by establishing job-specific training programs that would prepare and retrain > workers for specific skills for which there is great demand. > > Reducing the tax burden. Lower the tax burden on companies locating > investment and jobs in the United States by reducing the corporate income tax > and the payroll tax, thereby reducing the cost of capital and the cost of > labor-eliminating the current incentives in the tax code to move investment > overseas. > > Enforce U.S trade laws. Better use trade policy to protect American-based > companies from unfair trade practices of mercantilist economies. In > particular, the United States should do a better job of protecting > American-based companies from supply surges from abroad and from the dumping > of excess production during slowdowns in world economic growth, such as > occurred after the 1997-8 world financial crisis and is occurring now. > > Increase global demand. Encourage greater middle class consumption abroad, > which would increase demand for American-made goods and services and relieve > the burden on the U.S. market as a dumping ground for the excess production > of other economies. > > Fairly valued dollar. Seek an international understanding with America's > trade partners to prevent those economies from manipulating the value of > their currencies to gain competitive advantage. Such an understanding should > permit a decline in the value of the dollar to facilitate the reduction of > the U.S trade deficit and to remove the competitive advantages American-based > companies now face. A decline in the value of the dollar would help > American-based manufactures by making U.S. exports cheaper and U.S. imports > more expensive. > > Follow us on Twitter: www.twitter.com/NewAmerContract > Do you receive our valuable Daily Economic Briefing? Sign up now! > > Forward email > > This email was sent to [email protected] by > [email protected]. > Update Profile/Email Address | Instant removal with SafeUnsubscribe™ | > Privacy Policy. > Email Marketing by > > New America Foundation | 1899 L Street NW, 4th floor | Washington | DC | 20036 >
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