Sunday, 23 November 2014 / TRUTH-OUT.ORG

Quick Things to Bring Manufacturing Jobs Home

Saturday, 03 September 2011 09:08 By Dave Johnson, Campaign for America's Future | Op-Ed

Here is a fact about bipartisanship and civility in Washington: the Republicans in Congress will obstruct anything President Obama proposes to create jobs and help the economy, period. A bad economy helps them in the coming elections, and that is that. Deal with it. If you want to see results on jobs and economic growth you are going to have to get around a Republican House of Representatives intent on blocking jobs and growth. The President can and should "go big" and make dramatic proposals to Congress for job-creation. Doing so will draw contrasts so the public has a clear choice in the coming elections. Fortunately there are things the President can do right now, without the approval of Congress, that will have a big impact on job-creation now and in the future.

China Currency

China doesn't buy from us nearly as much as it sells to us and this has cost us dearly. China manipulates its currency to give Chinese-manufactured goods a competitive advantage in world markets. In effect this subsidizes their products so they have a cost advantage of as much as 30-40% coming out the gate, even before other competitive factors come into play. This has created huge imbalances not just with us but across the world.

The biggest thing the President could do right now is declare China to be a currency manipulator. Doing so enables the administration to impose sanctions, including tariffs, that would remove any cost advantage China gains from their manipulation. This would have an effect on reversing the loss of American jobs, factories and industries to Chinese imports, and would be supported by the public.

The President should officially declare China to be the currency manipulator that it is, and impose tariffs as a remedy. That takes care of China's advantage in US markets, and encourages other countries to take action, too.

With a level playing field our manufacturers can compete in world markets. Our government can take steps to help bring about such a level playing field, or to help our own companies against countries that do not play fair. This would tell companies that it is safe to manufacture here again, and our government will back them up.

But, But ,But...

There is concern about angering China when "we owe them so much money." It is important to remember why we "owe them" money. We owe them money because we thought we had a trade deal with them. By definition a trade deal involves actual trade, which involves buying and selling. We bought from them and they were supposed to use the dollars we spent there to buy things from us. But they didn't. The huge amount we "owe them" by definition means they didn't live up to their part of the bargain. We should insist that they use those treasury notes they have accumulated to purchase US-made goods.

Other Actions That Don't Require Congress

Scott Paul of the Alliance for American Manufacturing wrote in The Hill last monththat there are things the President can do without needing Congress' approval:

There is plenty that President Obama could do on his own right now:

• Expedite small business loans through the Small Business Administration and Treasury Department to help firms expand, retool and hire.

• Convene a multilateral meeting to address global imbalances and in particular Chinese mercantilism. If China doesn't agree to participate, designate it a currency manipulator. (China ships fully one-third of its exports to the U.S. and finances less than 10 percent of our public debt, so we have more leverage than some might suggest.)

• On the heels of the landmark agreement with automakers on fuel economy standards, secure an additional agreement from all foreign and domestic car companies to increase their levels of domestic content by at least 10 percent over the next three years.

• Direct the Department of Defense to leverage existing procurement to contractors that commit to increasing their domestic content of our military equipment, technology and supplies.

• Approve additional applications for renewable and traditional energy projects, contingent on the use of American materials in construction.

• Kick any CEO off of federal advisory boards or jobs councils who has: (1) not created net new American jobs over the past five years, or (2) is expanding the company's foreign workforce at a faster rate than its domestic workforce. Replace them with CEOs who are committed to investing in America. Shame is a good motivator.

National Industrial Policy

Even long-term things like promising the development of a national industrial policy could have an immediate effect on jobs here and now. If companies know that the US government is going to stand behind them if they manufacture here, and enforce trade agreements, and aggressively push for balanced trade where our trading partners don't just sell to us but also buy from us, they’ll put the US back into their manufacturing plans. If they know that the government understands and intends to assist key industries with tax policies, education and training policies, energy policies, infrastructure modernization,key research and development initiatives, and the other components of national strategy -- which is what other governments do -- they will know they are no longer going out to international markets alone, up against national systems.

By making it clear that our government is going to stand up for American manufacturers -- and their employees -- and won't pull the rug out from under them again, companies will have a reason to change their strategies and start bringing these jobs back home.

Dave Johnson

Dave Johnson (Redwood City, CA) is a Fellow at Campaign for America's Future, writing about American manufacturing, trade and economic/industrial policy. He is also a Senior Fellow with Renew California.

Dave has more than 20 years of technology industry experience including positions as CEO and VP of marketing. His earlier career included technical positions, including video game design at Atari and Imagic. And he was a pioneer in design and development of productivity and educational applications of personal computers. More recently he helped co-found a company developing desktop systems to validate carbon trading in the US.


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Quick Things to Bring Manufacturing Jobs Home

Saturday, 03 September 2011 09:08 By Dave Johnson, Campaign for America's Future | Op-Ed

Here is a fact about bipartisanship and civility in Washington: the Republicans in Congress will obstruct anything President Obama proposes to create jobs and help the economy, period. A bad economy helps them in the coming elections, and that is that. Deal with it. If you want to see results on jobs and economic growth you are going to have to get around a Republican House of Representatives intent on blocking jobs and growth. The President can and should "go big" and make dramatic proposals to Congress for job-creation. Doing so will draw contrasts so the public has a clear choice in the coming elections. Fortunately there are things the President can do right now, without the approval of Congress, that will have a big impact on job-creation now and in the future.

China Currency

China doesn't buy from us nearly as much as it sells to us and this has cost us dearly. China manipulates its currency to give Chinese-manufactured goods a competitive advantage in world markets. In effect this subsidizes their products so they have a cost advantage of as much as 30-40% coming out the gate, even before other competitive factors come into play. This has created huge imbalances not just with us but across the world.

The biggest thing the President could do right now is declare China to be a currency manipulator. Doing so enables the administration to impose sanctions, including tariffs, that would remove any cost advantage China gains from their manipulation. This would have an effect on reversing the loss of American jobs, factories and industries to Chinese imports, and would be supported by the public.

The President should officially declare China to be the currency manipulator that it is, and impose tariffs as a remedy. That takes care of China's advantage in US markets, and encourages other countries to take action, too.

With a level playing field our manufacturers can compete in world markets. Our government can take steps to help bring about such a level playing field, or to help our own companies against countries that do not play fair. This would tell companies that it is safe to manufacture here again, and our government will back them up.

But, But ,But...

There is concern about angering China when "we owe them so much money." It is important to remember why we "owe them" money. We owe them money because we thought we had a trade deal with them. By definition a trade deal involves actual trade, which involves buying and selling. We bought from them and they were supposed to use the dollars we spent there to buy things from us. But they didn't. The huge amount we "owe them" by definition means they didn't live up to their part of the bargain. We should insist that they use those treasury notes they have accumulated to purchase US-made goods.

Other Actions That Don't Require Congress

Scott Paul of the Alliance for American Manufacturing wrote in The Hill last monththat there are things the President can do without needing Congress' approval:

There is plenty that President Obama could do on his own right now:

• Expedite small business loans through the Small Business Administration and Treasury Department to help firms expand, retool and hire.

• Convene a multilateral meeting to address global imbalances and in particular Chinese mercantilism. If China doesn't agree to participate, designate it a currency manipulator. (China ships fully one-third of its exports to the U.S. and finances less than 10 percent of our public debt, so we have more leverage than some might suggest.)

• On the heels of the landmark agreement with automakers on fuel economy standards, secure an additional agreement from all foreign and domestic car companies to increase their levels of domestic content by at least 10 percent over the next three years.

• Direct the Department of Defense to leverage existing procurement to contractors that commit to increasing their domestic content of our military equipment, technology and supplies.

• Approve additional applications for renewable and traditional energy projects, contingent on the use of American materials in construction.

• Kick any CEO off of federal advisory boards or jobs councils who has: (1) not created net new American jobs over the past five years, or (2) is expanding the company's foreign workforce at a faster rate than its domestic workforce. Replace them with CEOs who are committed to investing in America. Shame is a good motivator.

National Industrial Policy

Even long-term things like promising the development of a national industrial policy could have an immediate effect on jobs here and now. If companies know that the US government is going to stand behind them if they manufacture here, and enforce trade agreements, and aggressively push for balanced trade where our trading partners don't just sell to us but also buy from us, they’ll put the US back into their manufacturing plans. If they know that the government understands and intends to assist key industries with tax policies, education and training policies, energy policies, infrastructure modernization,key research and development initiatives, and the other components of national strategy -- which is what other governments do -- they will know they are no longer going out to international markets alone, up against national systems.

By making it clear that our government is going to stand up for American manufacturers -- and their employees -- and won't pull the rug out from under them again, companies will have a reason to change their strategies and start bringing these jobs back home.

Dave Johnson

Dave Johnson (Redwood City, CA) is a Fellow at Campaign for America's Future, writing about American manufacturing, trade and economic/industrial policy. He is also a Senior Fellow with Renew California.

Dave has more than 20 years of technology industry experience including positions as CEO and VP of marketing. His earlier career included technical positions, including video game design at Atari and Imagic. And he was a pioneer in design and development of productivity and educational applications of personal computers. More recently he helped co-found a company developing desktop systems to validate carbon trading in the US.


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