Archive for March, 2008
March 21st, 2008
We are importing $60 billion a month more than we export.
All of that $60 billion cash is either sent abroad or loaned back to us. Part of the reason for the recent economic troubles is foreigners are naturally getting more concerned about loaning more of our money back to us.
As a business person and MBA the question of how to quantify the trade deficit has always been a challenging idea to measure. No thinking person could believe it has no effect. The truth to that person laid off or losing their home is very evident. Without good jobs the economy simple does not run. Without cash no company or government can operate, the same is true for any household. The truth is that simple.
How many jobs go with each month’s $60 billion cash? If that money were instead kept in the U.S. economy through purchasing products actually made here? That amount is the equivalent to over 1 million jobs total compensation for an entire year. That is a direct result of the cash drain, not even including the secondary effects from folk’s reduced spending, like the many recent business defaults and layoffs.
Therefore, the cost to the American economy of the trade deficit is over one million jobs per month. The cost of the sorry and anguish caused by our economy decaying is not measurable, but clearly massive.
What can we do? Buying products made in the USA is the best medicine.
March 15th, 2008
One of our customers at www.MadeinUSAForever.com did something very cool recently to help get the word out on supporting American manufacturing – He wrote a letter to the editor of his local paper expressing his views. This really does make a big difference in getting the word out and folks to discuss the issue. The more we can get them thinking about, the more we can make change for the better happen.
I actually know several people in the newspaper business and it is a lot easier than people realize to get letters printed. For the most part, editors are actually happy to hear from their readers, and printing these letters helps them to show their involvement with the community.
Their advice is to keep the letter short, about three or four brief paragraphs. Get to the point right away. Make a couple supporting comments and conclude the letter. Quick and easy to both write and read.
It is easy to find the address of your newspaper online. Just address it to the editor. Don’t worry if they want to edit for size or fix typos, as it is the main point that matters.
Why not take 20 minutes to help American manufacturing recover?
March 11th, 2008
Another sad day for local manufacturing, as I just received word that a small custom shoe manufacturer in Florida has ceased U.S. production and shipped it abroad to China. They cite the difficulty in getting components here in the States.
However, what about their other suppliers and their workers? It is not just that maker and the several dozen people they employed, but also the hundreds behind them that would occasionally supply some product or service. What about that community and those up the supply chain?
And this occurring while the economy is still supposedly strong, but what is going to happen when we face a real full blown recession?
By supporting American manufacturing we are supporting the thousands of businesses who support them. Some might take comfort in thinking they simply had nothing to do with that shoe manufacturer, but what about thier suppliers and their supplier’s suppliers and their communities? They all used to buy food we grew, cars we made, etc. The economy is interconnected, like a giant web, and when one area is unnaturally weakened, it weakens the whole. Over dependence on foreign oil and cheap Chinese goods is destructive to our economy.
Join me at www.MadeinUSAForever.com or anyway you can in supporting American manufacturing. Let’s always look for the Made in USA label.
March 5th, 2008
The recent announcement that the Airbus/Northrop team had beat Boeing in a USA Defense Department contract for refueling jet tankers with a contractual lifetime value of $40 billion is a massive blow to one of the few industries the USA has continued to lead.
This contract was originally given to Boeing, but ripped away under pressure to allow bidding from European contractors. France and Germany have massively subsidized Airbus (now called EADS), which already was a key factor in the demise of McDonnell Douglas’s commercial jet aircraft business. If this order goes through it is not only a blow to Boeing, but to their hundreds of U.S. suppliers. Yes, Northrop is an American company, but they are along for the ride with Airbus – providing mainly political know how in Washington. Make no mistake, this new deal is to purchase hundreds of French/German jet aircraft.
It gets worse. If even the pentagon is buying foreign jets, why should any of our allies buy American jets for military or commercial purposes? If this goes through, history will speak of this deal as one of the key blows to America’s waning industrial capability. Tens of thousands of good jobs and technical know-how will be lost.
I have never before asked you to contact your congressman, but this time it too important. We must take a stand. Please contact them at http://www.congress.org/congressorg/home/, which allows a quick search of congressmen by zip code. Tell them this deal must be stopped and that you will vote against them if it goes through.