By Gary Dickson
Sometimes, as a country, as we occasionally do as individuals, I think we are a little too hard on our self and that can lead to an overly pessimistic viewpoint. For example, one only has to listen, watch or read to learn that many Americans believe that we don”t really make anything in the United States anymore. Some people would have us believe that everything that American factories and workers used to make is now made in China , India and Mexico.
While it is true that a huge amount of U.S. factory work has been outsourced, the fact remains that the United States still leads the world in manufacturing and “Made in America ” remains a globally recognized symbol of quality. According to U.S. Census Bureau information the United States exported $1.06 trillion in goods last year. We are still way ahead of China . Associated Press writer Stephen Manning wrote, “For every $1 of value produced in China ”s factories (in 2007), America generated $2.50.”
So, the fact is, regardless of what we have been told, we have not heard the death rattle of American manufacturing, yet. But, there is definitely reason to be concerned about America ”s industrial future. American corporations continue to relocate plants offshore or outsource particular processes in the constant effort to shave costs. These efforts are negatively impacting the country. I don”t believe the recession is the only factor that has caused a loss in U.S. jobs. The fact that corporate America has exported millions of jobs to foreign countries has hurt employment opportunities even more.
When you look at the big picture, sending jobs to other countries has already started to turn into a losing strategy for America ”s large corporations. With fewer Americans working, fewer Americans buy whatever it is the corporations are selling. CEOs may experience reduced expenses, but they are also dealing with sales drops, too, causing revenues to dwindle.
From my perspective, while we are still the world leader in manufacturing, we need to set our sights on creating more opportunities for our citizens to start small companies that make things; items that can be sold here at home and that can be exported to other countries. It was industrialization that turned America into the world leader we are. America needs to continue to lead the world in manufacturing.
Manufacturing plays less of a role in the U.S. economy than it once did. Not long ago manufacturing accounted for nearly a quarter of the U.S. economy. It is now down to 11 percent. There has been a gradual transition from a manufacturing economy to a service-based economy. That is not the right path to continue down. I like what Michael Hughes had to say about a service-based economy. He wrote, “Without making things, we don”t create true wealth – we just move money around. You wash my car, and I”ll mow your lawn – a so-called service economy – leads to economic disintegration over time, as eventually the car will fall apart and the lawn needs to be re-seeded.”
A side effect of America migrating toward a service economy is a shrinking middle class. Historically, manufacturing created a large percentage of good paying jobs that provided the income that allowed so many to experience the “American Dream;” home ownership, two cars in the garage, an annual vacation and the financial means to put the kids through college.
If the trend away from manufacturing products in America continues, the middle class will continue to grow smaller and fewer people will be able to realize the American dream. We”ll actually become more like the countries from where most of the people have immigrated to America over the past 50 years. The time to act is now, while the United States is still the world leader in manufacturing.
Gary Dickson is the publisher of the Record-Bee. Call him at 263-5636, ext. 24. E-mail him at gdickson@record-bee.com.
