Politicians love to preach about the virtues of an industrial base. They do it for three reasons: Industrial firms are great sources of subsidies and political patronage, such patronage buys support from organized labor union voting blocks, and it actually does make sense for countries to produce real things of value. Since WWII America’s industry has steadily declined as a percentage of GDP, but the winds of change are blowing.
In “U.S. Economy ‘De-Evolving’: An Industrialist’s Plan To Revive American Manufacturing“, Lynn Tilton, CEO of industrial firm Patriarch Partners, makes the case that reviving America’s industrial base is imperative for the long term health of our country:
The reality is, in recent times, every great empire has been built on a manufacturing economy. The fall of every empire has been the failure to remember that one fundamental fact.
Tilton points out that manufacturing has dropped from 28% to 12% of the US economy since WWII and that “some people are better at building and making things than working on spreadsheets in a cubicle.”
A few things are clear, however, that support Tilton’s believe in a manufacturing revival:
- The US dollar (USD) is in for troubled times in the near future
- Declining USD means increased demand for domestic goods relative to foreign
- Sustained high unemployment reduces labor costs and makes domestic goods less expensive
In a free economy those factors would work to bring our trade and current account balances into equilibrium through increased manufacturing and industrial production; however, there is no telling how badly politicians can mess things up!
—–SPECIAL OFFERS—–
The Federal Reserve is creating tens of trillions of new dollars, debasing our currency, and silently taxing us all through inflation. With tens of trillions in federal budget deficits on the horizon there is nowhere for the US dollar to go, but down.
Refuse to be a victim of this flawed financial system, buy gold and silver NOW!
With hyperinflation and risk of economic disaster increasing with each dollar Congress recklessly spends, it pays to be prepared: Consider stocking up on Emergency Supplies:
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
One Response to “U.S. Economy De-Evolving: Rebuilding The Industrial Base”
Trackbacks/Pingbacks
[...] Name (required) Mail (will not be published) (required) Website. Feb 3, 2010. 8K a Week Review …U.S. Economy De-Evolving: Rebuilding The Industrial Base …Politicians love to preach about the virtues of an industrial base. They do it for three reasons: [...]