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The Way Out: Manufacturing

By: Steve Johnson

1/22/2008 - 16 Comments

Last week the US factory orders have hit a 5-year low. Primarily because most of the manufacturing sector in America (what’s left of it) is producing products for the housing market.

With new home construction slowing to a 27-year low, it’s no wonder factory orders are in the toilet.

Reference Article: Home Construction Slows to 27-Year Low

The real solution to getting the US economy out of a recession is to rebuild the manufacturing sector, and if America consumers are broke then we need to target other parts of the world that are growing.

Iraq economy to boom

Iraq's economy is expected to boom in the coming year, despite political and security problems, the International Monetary Fund (IMF) says. This is our chance to get some of our war money back.

Reference Article: IMF says Iraq economy to boom

“Surging oil prices have recently boosted Iraq's oil revenues to $27bn, $6bn higher than projected.” Iraq has been decimated by war and tyranny government for decades. But, now has a stable government and with the drastic increase in oil prices, they are ready to increase their standard of living.  Who better then the restructuring of the America manufacturing industry to target this emerging market?

Entrepreneurs
 
Entrepreneurs have lifted the US economy out of several other downturns.  We need a new breed of youth people to attack new markets in nanotechnology, healthcare, alternative energy sources and water filtering/delivery systems, etc.  The only problem is that we have just gone through the most prosperous time in our history and most of the young educated people in America have grown up with money in hand, and therefore have little ambition or motivation to devote the next ten years working hard at building a new business.  But, that’s exactly what we need.

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Freedom: America's Competitive Advantage in the Global Market

Gamble argues that globalization brings far more benefits to the U.S. economy than it takes away. Gamble shows that both Europe and emerging economic powers like China and India have serious long-terms problems linked to their cultures, political structures, occasional instability, and state ownership of companies. These and other factors will eventually put a brake on the economic growth of hot emerging economies. The fundamental protections of property and free speech, a culture that promotes and rewards entrepreneurship, banking policies that make capital easily available, are still more supportive of economic growth and wealth creation than can be found anywhere else.

Driven Abroad: The Outsourcing Of America

Anyone who wants to see the real impacts of outsourcing should read this book. It leaves you thinking the real workers are never the winners, and makes you question what we are allowing to happen. The result of outsourcing is cheaper products for the consumers, which are mostly Americans – who are losing their jobs and will no longer be able to buy the products. Therefore, the products will eventually follow the jobs.

Day of Reckoning

In Day of Reckoning, Pat Buchanan reveals the true existential crisis of the nation and shows how President Bush's post-9/11 conversion to an ideology of 'democratism' led us to the precipice of strategic disaster abroad and savage division at home. Ideology, writes Buchanan, is a false god that seeks vainly to create a paradise on earth. While free enterprise is good, the worship of a 'free trade' that is destroying the dollar, de-industrializing America, and ending our economic independence, is cult madness.

U.S. Manufacturing: The Engine for Growth in a Global Economy

This volume provides a comprehensive analysis of the essential role of the manufacturing sector of the US economy. The increase in the relative importance of the service sector and the globalization of manufacturing has tended to dull the image of US manufacturing....This volume contains much useful data that has been condensed into tables and charts to provide support to the reader without interrupting the flow of the text.