Not too long ago, the ticket to the middle class was straightforward. Work hard, play by the rules, and you'll have something to show for it -- a good wage, a secure job and home, and a solid pension.
Our nation -- and economy -- relied on workers around Ohio to build cars and appliances, to lay down rail lines and highways. Their work put them squarely in the middle class. Their work -- and a thriving manufacturing industry -- turned our nation into an economic superpower.
Job loss and wage stagnation figures reflect a decade's long decline in U.S. manufacturing, a decline that has shattered the American dream for millions of Americans. What these figures don't reflect is the enormous potential the manufacturing sector holds for revitalizing our economy and ensuring our nation remains an economic superpower. Robust manufacturing capacity is not only essential if we are to achieve energy independence and sustain the independent ability to equip our military, it is the key to global competitiveness in emerging markets. From clean energy to medical and information technology to global infrastructure needs -- our nation's global competitiveness depends on our nation's manufacturing sector.
To realize our full potential, we must stop ignoring the challenges that manufacturing faces. We need a national plan -- a national manufacturing policy -- that aligns federal actions with the goal of strengthening our manufacturing sector. Today, as Chairman of the Senate Banking Subcommittee on Economic Policy, I am hosting a hearing to examine how best to develop a robust national manufacturing policy.
Some ideas we'll consider: Permanent research and development tax credits. Making these credits permanent would incentivize investment in clean energy manufacturing industries like solar and wind power. A strong and reliable business climate promotes incubators of innovation that help entrepreneurs excel in a 21st Century economy -- like the more than twenty incubators located at Ohio's universities and businesses from Youngstown to Columbus to Dayton.
We must also ensure that Ohio's auto supply and component manufacturers -- companies that make brake pads and engine parts for cars and trucks -- have what they need to keep jobs in Ohio by helping them expand into the emerging clean energy industry. In June, I introduced the Investments for Manufacturing Progress and Clean Technology (IMPACT) Act, which would provide a $30 billion revolving loan fund to help manufacturers that make gear boxes or windshields for cars to make those same components for wind turbines or solar panels.
Ohio's skilled workers are the backbone of our economy and our middle class. A national manufacturing policy must invest in them by linking highly-skilled workers with businesses in emerging industries. In April, I introduced the Strengthening Employment Clusters to Organize Regional Success (SECTORS) Act, which would allow businesses, workforce development boards, labor unions, and community colleges to determine workforce and community needs. SECTORS organizes workforce training around emerging industry clusters like biosciences and alternative energy manufacturing in the Cleveland area or solar power development in Toledo. By providing tailored workforce training for community and industry needs, we can create and retain jobs in Ohio and around the nation.
There should be a coordinated federal response when a community experiences massive job loss, the kind of job loss both Wilmington and Dayton have endured. The federal government has a strategy to assist communities hit by a natural disaster. We must follow the same protocol when a community is devastated by a major plant closing. President Obama's Director of Recovery for Auto Communities is working to coordinate the federal response to auto-related layoffs. We need the same level of coordination for other economically-distressed communities fighting for economic stability.
Our nation has one of the most open markets in the world, but we don't practice trade in our national interest. Our trade laws are not enforced, our trade deficit is expanding, and our communities are crushed by job losses. A national manufacturing policy must include fair trade policies that promote American manufacturing. Later his month, I'll be introducing the Trade Reform, Accountability, Development, and Employment (TRADE) Act, which would ensure our trade agreements with Panama, Colombia, South Korea, or with any nation create a level playing field for U.S. manufacturing.
A robust national manufacturing policy will invest in Ohio's skilled workers to build our way to new opportunities in new industries. A Pew Report on Clean Energy notes that from 1998-2007, clean energy jobs grew in Ohio by 7.3 percent while all other jobs fell 2.2 percent. The report notes that Ohio is only one of seven states with such growth, and ranks fourth nationally in number of clean energy jobs. From public support to private research and development to venture capital investment, Ohio is forging a path to a revitalized manufacturing sector.
But Ohio's communities, skilled workers, and entrepreneurs need a national manufacturing policy now. It's a policy that promotes manufacturing, once again, as a ticket to the middle class.
Make it a rule that anything used by the military be made in the U.S.
As long as we are paying for stuff made overseas, why not make it here and
put people to work here.
We fight for everything and everybody else...why not for our jobs here.
There must be some empty factories around that the Gov't could fund for the
military.
One of the ironies of the Stimulus plan is that strong exporting nations, such as Germany and China, may benefit more than the Americans since they can manufacture and import goods more cheaply into America they they can be produced here. Hence Senator Brown's essay.
Watch conservative Republicans fight Sen. Sherrod's initiative tooth and nail!
Kudos! Good stuff! But there's one piece missing that I hope you will seriously consider. As long as corporations benefit from the very same rights as individuals, no manufacturing policy will effectively handle the serious structural economic ailments our nation currently faces. A viable manufacturing policy must recognize and address means to establish meaningful, legal distinctions between "corporations" and "individuals". All the best!
I will gladly buy American if it means a better product. I'm so tired of throwing money away on imported or outsourced products (from China, for example) that are expected to break after only a few uses... Products that used to last a lifetime when made in America and actually came with a lifetime guarantee. Now you're lucky if something is guaranteed to work for three-to-six months!
And you can usually forget exchanging it or getting your money back when something breaks. Now it's easier to go out and buy another cheap replacement that is guaranteed to break down quickly. But this practice costs the consumer much more in the end.
I long for the days when 'Made in America' was the standard and quality was expected. Though the initial price may be higher, the quality should make it the wiser buy, thus cheaper in the end.
A Consumer
'Cause that worked out so well in other places....
In our economy, there is no room for honest annual growth and expansion. Every investment is a crap shoot of getting in and out and making a fast buck off the sweat and toil of other men's faces. Market manipulation makes oderly business growth impossible. And labor is exploited as if we were a colony or traditional organization.
As you write, our goal must be for a modern society (modern organization). But our leadership is pulling us towards powerlessness and servitude and incompetent decision making, the ingredients of a traditrional organization.
Corporations have been treated as "individuals" for decades and are given the same rights.
"All Power to the Corporations" has been the mantra.
Terminate all unfair "free" trade treaties.
Make importers pay all inspection costs and require 100% inspection of all imported goods; iow, make imported goods too expensive.
Create an energy infratructure that stops using coal and natural gas to generate electricity: build nuclear power plants. Use chemical plants to covert coal into diesel and gasoline (ending an 700 billion dollar import cost).
For corporate rates, set them high and then give rapid depreciation for good investments in plant, etc. and maybe penalize for offshoring. Can be done. The trick is getting around influence in Congress.
We could get around WTO rules. But it was badly negotiated. The basis, MFN, is rigged against legalistic and open markets like ours. As for treaties, they can be handled, too. With a thousand cut strategy that includes things like your ideas on fees. Why should Americans subsidize imports? IF there is a problem , as with Chinese product safety, inspect the heck out of things. Same for textile imports in places with records of fake paperwork, etc. And fees on imports should pay for port security writ large. It's not exported containers that might have a nuke.
We have, as a more cohesive and interdependent society, perhaps our last chance to become a major industrial nation once again. The limits of international trade have been reached. Gigantic container ships roll over in rough seas dumping their entire cargos into the dying oceans. We need now, finally, to begin to make what we use. To make it better than anyone else and make it with a concern for our environmental heatlh and the health of our economic system. We NEED an industrial policy.
The same people who cry about the loss of US manufacturing are thrilled by the low prices in Wallmart, cares from Japan, shoes from Korea etc. The global economy concept worked great until $4 a gallon gas caused a crisis in the automobile industry and the the fall of house of cards in banking and housing.
A national manufacturing policy sounds great, but unless we are willing to pay higher prices that is not going to happen. Unions have been the whipping boy but we would not want our workers nor would they accept the working conditions imposed in foreign countries that permits lower manufacturing wages. 16 hour days, living in dorms, few if any benefits and wages that are trivial is the norm in China and Korea.
Unless we are willing to accept higher prices for american goods, Manufacturing in America will be little more than a nice bumper sticker and campaign slogan.
Cadillac and Lincoln had the luxury car market, they lost it because their cars were not as good as Lexus, BMW, or Mercedes.. the consumer decided that. Manufactured in America makes sense as long as the products are competitive in not only price but quality.
What bit us in the behind was bad management and politicians who did not stand up there and read the riot act to industry. Republicans hands off big business, and politicians who lacked the back bone to stand up and yell at business leaders and lobbyists.
There is enough blame to go around but now we are captive to China and Korea just like we are for oil from the middleast.
Go to China where the Ipod is made and then talk to me. Worse go to India, I will never to back to that country, dirty filthy and worse.
Japan is wealthy, a closed society that while densely populated is still a country. Much of their manufacturing is now done in Korea, China and other places.
The hype is one thing seeing with your own 2 eyes is another.
1) Yes, we need a strong manufacturing base.
2) The issue of wage rates ($/hr) is a red herring from the Roger Smith era. If $/hr were the crucial factor in manufacturing sector all manufacturing would migrate to low wage rate locatons which include South Dakota and Mississippi. Note that the credit card industry did move enmass to take advantage of states that allowed high interest rates. The real issue is labor cost per production unit.
3) Unfortunately some manufacturing jobs wil be lost due to the use of computer controls that is PLCs and CNC machines.
4) The real issue is the giveback back system which rewards financial slight of hand rather than the old and proven mantra of manufacturing - "Better, Faster, Cheaper" . The give back system is a legal system of money laundering, The givebacks are essentially leagal kid\ckbacks and you find then\m all across industry, That corporate travel service ? Wounder why it cost more than say Orbitz ? the travel service is providing a give back to it's customer, That wpecial coporate credit card the same, The purchase of rawmaterials the same and so on.
5) The globalization is an effort to shift profits to overses locations rather than pay taxes in the USA.
Clean up the financial system and tax code and manufacturing will do fine.
The world financial system is a legacy from a time when the United States dominated the world's economy with its manufacturing. As manufacturing declined, traditions of paper values hung on so New York and Washington continued to draw investments and hold the respect of the dollar. As early as the Reagan administration, an over valued dollar began to price American made goods from not only a world market but here at home. An over valued dollar is nice, particularly if you tour abroad, but the privilege has been abused. It is not a stable privilege, anyway. if the dollar cannot buy anything real, recognition thereof will ultimately cause it to fall.
The main problem with our tax code is that it is inadequate. The economy adjusts to an abiding tax code by paying people a little more to cover their taxes until it matches what society and markets think is fair. Afterward, foreign markets adjust prices so all are competitive.