With Manufacturing Plan, Obama Misses The Bigger Picture.

Posted: July 5, 2011 in News, Opinion
Tags: ,

 

 

 

Guess what Obama doesn’t know what the hell he is talking about again, and his plan to create manufacturing jobs further shows his lack of knowledge about macro economics.

 President Obama‘s new program to revive American manufacturing, largely by improving its access to federal and university research contains some promising, if small-scale, features. But it ignores the structural and global challenges mainly responsible for domestic industry’s malaise. In a word: Imports keep corroding what had been a powerful engine of job-creation, growth, and technological progress.

Here’s one way to grasp the scale mismatch between the Obama plan and the plight of domestic manufacturing: The President’s proposal would devote $500 million annually in federal and private sector funding (much of it already appropriated or spent) to promoting advanced manufacturing. Last year, however, manufacturing in the United States ran a $565 billion trade deficit. So far this year, that deficit is running 14.5 percent higher – despite a slowing economy, which is supposed to curb Americans’ appetite for imports. Every dollar of this trade deficit represents lost opportunities for production, employment, and innovation. Worse, the borrowing needed to pay for these goods further boosts already dangerous levels of US debt. Full Article Here–> With manufacturing plan, Obama misses the bigger picture

 

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