Showing posts with label Protectionism. Show all posts
Showing posts with label Protectionism. Show all posts

October 10, 2011

Growing America's Jobs

Robot

ABC News reported tonight of a home builder in Montana making a house entirely from American made products--as difficult as they are to find.

The home uses more than 120 products from 33 states and costs only 1 to 2% more than a foreign-sourced one.

The builder who is also an economist says that if builders around the country would just increase their use of made in the USA products by 5%, we could increase jobs by over 220,000 right now.

Multiple it by ten, if we actually produced these homes 50% or more here in the USA--that's 2+ million jobs.

It makes you wonder if all the outsourcing is just another addiction where we feel good now--by saving a little today at the checkout line--but we pay the piper down the road, through the gutting of our own labor force and the future capacity for us to produce.

While, I don't believe in circle-the-wagon protectionism out of fear of competing in the global marketplace, I do think we need to assess the deals we make to ensure that we are getting the best for our people and our future--and not just for the next quarter or two, but for the long-term!

Having started my career in business, I am well aware that this is "one big balance sheet" and things have to add up or else short-term profits today are made at the expense of long-term capabilities tomorrow.

If the strategy was that we would somehow give the blue collar work to others and keep the white collar work for ourselves, it seems like we have deluded ourselves into thinking that a one-size fits all economy will keep America running.

We need broad based opportunities for our diverse workforce in all areas of work, and we need to remain strategically self-sufficient, so that we do not outsource ourselves to economic death, where we lose the know-how or capability to help ourselves.

Buy, build, and work America into an economic powerhouse that the world relies on, rather than one that is fed by others with economic loans and cheap goods made in wherever-land.

In my opinion, there is no real alternative to balancing the national budget as well our current account deficit--if we consistently spend more than we earn, and the ships keep unloading more stuff here and then going back overseas half empty, eventually the system has got to go kaput!

As the world's superpower, our coffers can once again be full and our ships can brim proud with made in America wares--but this can happen only if we focus on products that outlast, outlook, and outperform.

Competition has never been more fierce and the stakes never higher for us individually and as a nation--we will need technology to keep us steadily improving and releasing the pressure from this enormous economic cooker.

(Source Photo: here)

Share/Save/Bookmark

February 15, 2008

“Fair Trade or Free Trade” and Enterprise Architecture

What is the way ahead for free trade—further globalization and lost jobs for U.S. workers or isolationism and protectionism?

Fortune Magazine, 4 February 2008 reports that “economic anxiety has inspired a backlash against free trade…in the great game of global trade, Americans are increasingly feeling like the losers.”

How did we get to this advanced state of global trade?

Americans led the works in building a roadmap for global commerce during the 1990’s” with the North American Free Trade Agreement (NAFTA) “linking the U.S., Canada, and Mexico to create the world’s largest trade bloc.”

Why are Americans reeling from free trade?

68% of those surveyed say America’s trading partners are benefiting the most from free trade, not the U.S. The sense of victimhood is changing America’s attitude about doing business with the world. We are a nation crawling into a fetal position, cramped by fear. That America has lost control of its destiny in a fiercely competitive global economy. The fear is mostly about jobs lost overseas and wages capped by foreign competition. But it is also fueled by lead-painted toys from China and border-hopping workers from Mexico, by the housing and credit crisis at home, and by the residue of vulnerability left by 9/11 and the wars that followed.”

We are turning inward. Especially now, as the U.S. economy sputters…median household income in 2006, at $48,201 was barely ahead of where it was eight years earlier. So the prospect of a recession has made the anxious middle class even more so.”

“Most analysts agree that the underlying reason for public anxiety over globalization is the visibility of factory closings and the stagnation of income.

What is the result of the backlash against free trade?

“Today, nearly two-thirds of Americans are willing to pay higher prices to keep down foreign competition.”

With the upcoming presidential election, “the Democratic mantra is now, ‘fair trade, not free trade.’”

“Most Democratic leaders insist they don’t want to, nor believe they can, halt the global flow of commerce. Where they hope to connect with voters is by promising to strengthen the safety net.” This includes special training programs, tax incentives for companies to relocate to where workers have lost jobs, and expanding unemployment benefits.

I agree that we cannot retrench into isolationism, although a little protectionism sounds about right and fair. We need to architect our nation’s role in global trade, so that we are not running huge trade deficits, losing valuable jobs to overseas workers, and buying shoddy products from overseas.

Enterprise architecture is about identifying the baseline and setting a target and transition plan. Well the current baseline, as outlined, is ruinous for the U.S. economy. The target is clearly a more strategic trade policy that protects our vital economic industries, interests, and workers. And the transition plan is to establish the laws and policies to change our wayward direction and quickly.

Finally, businesses must look beyond the quarterly financial statements and daily stock prices of their companies and instead establish longer-term targets that focus on retaining strategic assets and know-how at home here in the U.S., rather than trade it away for a quick buck on the quarterly income statement.


Share/Save/Bookmark