In a Politico op-ed titled, "Save American manufacturing," the Institute for America’s Future's Robert Borosage writes that Democrats are working to bring manufacturing back.
Ignoring the optimistic note of a continuing dem majority in both houses (although I don't believe it's misplaced), that first paragraph has a lot going for it, although the "tax incentives for creating jobs" hits me as a little iffy. If it's just a tax credit for hiring someone, I don't think it's going to do anything. In order for tax incentives to increase employment they must do at least one of the following (let me know if you think of any more. I'm not shooting for comprehensive here):
Anything else is giving a tax credit to hire someone for busy-work, which ain't gonna happen. In terms of new industries and markets, there's renewable energy. I know the aforementioned polling shows people skeptical of "high-tech" industries, but we need to show people that renewables aren't some mysterious, scientific mumbo-jumbo -- it's pretty damned low-tech. I think it's a mistake to portray it as anything other than simple... Which it is.
Still, without manufacturing, we're a nation of middlemen and bankers, producing nothing of actual value and dependent on other countries to take advantage of our services. Global free trade has turned out to be a disaster for the American middle class and someone really needs to beat it to death with a good old American-made claw hammer. I'll take "a tougher stance on trade," but I'd rather have a brutal, bloody execution.
I remain skeptical as to whether Borosage has a good grasp of Democratic plans. I'll believe it when I see it. But if it happens, it needs to be done right.
When they return in September, the Democratic majority plans to push a legislative agenda that takes the first steps toward reviving U.S. manufacturing. Specific elements are still being determined but are likely to include new tax incentives for creating jobs, subsidies and tax credits for investment in renewable energy and a tougher stance on trade -- probably featuring a challenge to Chinese currency manipulation.
Politically, the power of this message was foreshadowed in the Pennsylvania special election for Rep. John Murtha's seat. Mark Critz, the Democratic candidate, won an upset in a conservative, white, ethnic district, with a campaign attacking the free-trade policies of his businessman opponent.
Democratic leaders were also electrified by a Mark Mellman poll for the Alliance for American Manufacturing, which showed that large majorities believe manufacturing is the most important industry for our economy and national security and support action to revive it. Two-thirds of Democrats, Republicans and independents reject the view that "high-tech and services" industries can replace manufacturing in a strong U.S. economy.
Ignoring the optimistic note of a continuing dem majority in both houses (although I don't believe it's misplaced), that first paragraph has a lot going for it, although the "tax incentives for creating jobs" hits me as a little iffy. If it's just a tax credit for hiring someone, I don't think it's going to do anything. In order for tax incentives to increase employment they must do at least one of the following (let me know if you think of any more. I'm not shooting for comprehensive here):
1. Incentivize branching out into a new industry/market.
2. Incentivize buying American-made products/components.
3. Incentivize using American services.
Anything else is giving a tax credit to hire someone for busy-work, which ain't gonna happen. In terms of new industries and markets, there's renewable energy. I know the aforementioned polling shows people skeptical of "high-tech" industries, but we need to show people that renewables aren't some mysterious, scientific mumbo-jumbo -- it's pretty damned low-tech. I think it's a mistake to portray it as anything other than simple... Which it is.
Still, without manufacturing, we're a nation of middlemen and bankers, producing nothing of actual value and dependent on other countries to take advantage of our services. Global free trade has turned out to be a disaster for the American middle class and someone really needs to beat it to death with a good old American-made claw hammer. I'll take "a tougher stance on trade," but I'd rather have a brutal, bloody execution.
I remain skeptical as to whether Borosage has a good grasp of Democratic plans. I'll believe it when I see it. But if it happens, it needs to be done right.
