Society for American Industry

     We Must Work Together or We Will Sink Separately         

 

 

American Industry in Crisis  

 

American factories are non-competitive .

 

Being non-competitive guarantees a continuous state of American industry in crisis. American factories are non-competitive with factories in countries that have virtually no labor standards like child labor laws. American factories are non-competitive with factories in countries that have no environmental standards. American factories are non-competitive with factories in countries that outlaw labor unions. American factories are non-competitive with foreign companies that counterfeit American products. American factories are non-competitive with foreign companies that are subsidized by their governments. Etc.

 

To regain and maintain leadership we need a program that teaches owners, managers and workers to think competitively and be competitive 8 hours a day all week long.

 

Americans buy too many foreign products.

 

Of course we do. We often buy the cheapest (foreign) product regardless of quality. In many cases we are offered no alternatives. In many cases we have no alternatives: we are already feeling the effects of globalization-induced downsizing. And our friends and family members are losing good jobs as American factories are closing.

 

To sell more American products we need a coordinated program to promote the "buying American" ethic and increase our "American sense of community" .

 

Existing treaties are not enforced in the  United States.

 

Free trade is a concept that has appeal, at least in a utopian way. In reality there is no such thing as "free trade", at least where the United States is concerned. "Free trade" is definitely a one-way street. Import goods are allowed into the United States virtually barrier-free, with no enforced requirements that American export goods be allowed into the foreign country on a reciprocal basis. There should be equilibrium in the overall trade balance of goods and services between nations. As it stands, free trade is free for the other guys.  America and its workers get to pay.

 

To assure American manufacturers and workers a fair shake we must convince the United States government to stand up  to illegal trade practices of treaty partners.

 

Anti-import trade practices prevail abroad.

 

Foreign governments use many non-tariff techniques to prevent the import of American goods and services. These include, but are not limited to special fees, taxes, regulations, inspections and manipulation of foreign exchange rates.

 

To discourage trade discrimination we need to convince foreign governments that the United States can match them barrier for barrier. And we will if necessary.

 

Result: massive U.S. trade deficits & job losses.

 

The U.S. Trade Deficit for 2006 was three quarters of a  trillion dollars (pretty serious money). That is how much more money went out of the country than came in. The magnitude of the outflow cut a large chunk out of the United States  capital pool available for new plants, equipment and workers. Other effects of the negative cashflow were closing of American plants and downsizing of the American workforce. How much worse does it have to get before we wake up and save ourselves? The United States is the only nation on earth that leaves its industrial sector twisting in the wind. If this is not a picture of American industry in crisis, what is?

 

To survive and prosper as functional family businesses, private and public American corporations, and productive well-paid workers we must compel our government to make trade a two way street.  

  

 American Industry in crisis 

 

We really should work on these things

before the lights go out.

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A word from the wise

is rarely sufficient.

 

"The U.S. Trade Deficit

is a bigger threat to the

domestic economy than

either the federal budget

deficit or consumer debt

and could lead to

domestic turmoil.

 

Warren Buffett 

**************************

 

We need government

in the General Interest

rather than government

for the Special Interests.

 

"Our government should

pay more attention to Main

Street and less attention

to Wall Street.”

 

James D. Kirk, Jr.

President

Society for American Industry

 

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