With Congress discussing ways to cut the deficit to rein in the uncontrolled spending that has eroded the quality of life for every citizen in America they seem to have forgotten one aspect of the economy that would spur growth, jobs. They are talking about everything but bringing jobs back to this country that are now overseas.
During the 1970’s we saw a shift from manufacturing to the service industry as businesses saw an opportunity to increase profits by shipping business overseas. Our manufacturing base declined from 24% in the early 1970’s to 10% in the late 1970’s. During that same period the service industry gained business at a slow and steady pace until it exploded in the 1980’s causing manufacturing to recede even further as more businesses move overseas.
As a nation we can not sustain this country on service, we need broad-based manufacturing back to bring unemployment down, tax revenues up and most importantly an economy that once again will flourish from the East to the West as businesses open up once again and begin to manufacture goods made in America.
Our elected officials do not need to raise taxes on the rich as we so often hear in the media today, what they need to do is to entice businesses to return to America to produce products once again by making a few changes to our trading policies.
First, we must penalize those American companies that produce products outside of the United States, not by increasing taxes but by taking away the loopholes that make it beneficial to continue to produce outside our borders.
Second, we must not allow other countries to manipulate their currency as China does in order to bring products in far below their actual production costs. This is an unfair advantage and no American company can compete with that.
By making the right choices in Washington we can grow our economy, increasing jobs and reducing our dependency on government assistance. With a vibrant work force we need less funding on un-employment benefits, welfare and food stamps along with many other government-run functions. The cyclical effect will help to reduce the 10 plus trillion dollar debt our nations carries.