Manufacturing in the US: Path for a Stronger Economy?

WHAT IT IS

WHY IT MATTERS

To create more American jobs, the Trump administration is pushing to cut taxes and reduce regulations for both big and small businesses. Economists are divided on whether tax cuts would really create more jobs.

  • BORN IN THE USA – “Bring jobs home”

    • Misconception:   While certain types of manufacturing is being automated or moving away from the U.S., advanced and specialized manufacturing is actually expanding.
    • Negligible difference:   It costs almost as much to manufacture in China as in the U.S., notwithstanding the cost of transportation.
    • America is still great:   Manufacturing is still the largest sector in the U.S. economy.
  • LETS GO GLOBAL – “This is the future”

    • A misconception: While the labor costs may be cheaper in countries like China, India, Indonesia, and Mexico, other factors like the cost of raw material and electricity could make manufacturing more expensive.
    • Stop rising cost:   Products from iPhones to sneakers would cost more if they were made entirely in the U.S.
    • Globalization:   The future of manufacturing is global.

WHERE WE ARE NOW

  • In the name of bring back manufacturing jobs to America, the Trump administration risks a trade war with Mexico, China, and Canada.

THINGS TO THINK ABOUT

  • Potential ways to create more jobs here.
  • What makes a business “American”?
  • While Trump continues talk about coal mining jobs, advanced energy is a remarkably rapidly growing industry and has created 3.3 million jobs in the U.S.
  • The investigation into the labor practices in China, focusing on the shoe manufacturer for the brand owned by Ivanka Trump, intimates that low-end factory work is moving from rural China to other countries like Ethiopia. Made in China may soon be no longer.