The contents of this article were originally written in 2004. EconomyInCrisis.org tried to inform the country six years ago that our direction and priorities were not on the right track. America’s erroneous ways continued unchanged, which have caused our present plight. We are still trying to inform the country and our representatives before our situation grows further and eventually beyond our control. Hopefully, in the throes of a recession America will start to listen. What role will you have played in America’s downfall? Contact you representatives immediately and often, America’s future depends on you.

The United States was once considered a rich country. We accumulated much abundance throughout most of the twentieth century, as we were a very productive country whose wealth, to a great extent, derived from manufacturing. Our companies invented and produced many of the things we needed and much of what the rest of the world needed.

Today, American-owned corporations manufacture less and less each year and import more. Once great manufacturers have become mere suppliers of products and services.The difference between the amount we import and export has created a huge balance of trade deficit. This correlates directly to the loss of 6 million domestic manufacturing jobs over the course of 30 years.

As our American owned companies produce less, they become inefficient, uncompetitive, and ultimately go out of business. Often they are easily taken over by foreign-owned corporations holding huge supplies of our wealth generated through their trade surplus with us.

Japanese, German, Swiss, Dutch, English and other countries’ corporations have purchased much of Wall Street in the last decade. Now, no American-owned companies make TV’s anymore and very few produce audio and electronic products. Many products that America claims to manufacture are in actuality assembled here, their components consisting of just more imports.

The American book publishing industry is now largely foreign-owned. German corporations alone are estimated to own a huge percentage of that industry. Our steel industry is in a disastrous condition and is headed for the slagheap. Much of our steel is now imported. Our movie industry is 75 percent foreign-owned. Our cement industry is 81 percent foreign-owned.

The decline of America’s manufacturing industry also poses a national security concern. U.S. defense industries are becoming ever more dependent on foreign manufacturers for key components and materials. Here are just a few examples of vital defense-related goods that we now have to depend on foreigners for:

Laser diodes: These are essential in a variety of high-tech civilian and military applications. Virtually the world’s entire production comes from Japan.

Ceramic packaging: This is essential in making many high-performance chips used in weapons systems. Ceramic packaging was in critically short supply during the Gulf War a decade ago because of the reluctance of Japanese manufacturers to supply the U.S. War effort.

Ferrite: This is important in many high tech applications. TDK of Japan supplies the U.S. Defense Department.

Gallium Arsenide: This is a semi-conductor material that is crucial for making high-speed chips needed in certain military applications.

Titanium and carbon fiber: These materials are essential in many aerospace applications. Foreign suppliers dominate certain key stages in their production.

Charge coupled devices: These are the “eyes” on U.S. missiles. Their function is to lock on to the target and guide the missiles to it. Foreign producers now dominate the industry.

It should be noted that as with many other manufacturing industries now dominated by foreign producers, the United States pioneered the production of most of the devices and materials listed above. Unfortunately, as imports flooded our markets in the 1980s and 1990s, U.S. producers one by one exited these industries.

We call ourselves a superpower. How strong are we when we can’t produce needed products to maintain our strength? We must reverse this trend. We must develop an industrial policy to create incentives for American companies to manufacture in America. We must invigorate strategic industries and prevent their sale to foreign ownership. We should not allow ourselves to depend on other countries.

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