Producing in America will Prevent Falling off the Dreaded “Fiscal Cliff”, And Here’s How We Can Do It
The fiscal cliff is a combination of automatic spending cuts and higher taxes that has the potential to be very damaging to the U.S. economy, but the conversation about preventing it has not focused on the right things.
During the talks between congress and President Obama there has been no mention of what we can do to increase growth of America’s economy and jobs. Our real problem is our lack of manufacturing and the good jobs that come along with it, caused by the unbridled flow of cheap imports into our country from overseas.
It isn’t just spending; it’s that our economy isn’t growing. We need a bigger, better economy, and we will never have that as long as our productive industries are being put out of business by uncontrolled, unrestricted, and unfair foreign competition.
Our government needs to be doing things to make our businesses competitive. This is the only way to grow our economy so we can competitively produce the things we need. Some have called for tax cuts, but this will only add to our debt and will not address the root cause of our problems.
There is a bigger problem than high tax rates.
America has foolishly pursued “free” trade policies that have opened the floodgates to goods made at wage rates of $4 an hour or less. We cannot compete with these wage rates, so our companies are forced to either outsource their manufacturing operations or go out of business. With our productive capacity reduced and our good jobs gone, it is no wonder we no longer have the tax base to support ourselves.
Our outlook as a nation would be much better if our leaders would see the error of these trade failures and restore pro-American policies that enhance our manufacturing capabilities.
If we put American companies back on a level playing field through needed tariffs, where approprate – as we had through most of our previous presidents - we could again create millions of jobs and hundreds of billions of dollars in new tax revenue, meaning we wouldn’t have to sacrifice crucial programs or raise taxes.
Present “free trade” agreements are a proven disaster that is preventing this. The sooner our politicians realize this, the sooner we can get our country back on track. The “fiscal cliff” is a crisis created through a lack of leadership in Washington.
We need to acknowledge what works (domestic manufacturing), get rid of what doesn’t (free trade), and stop focusing on the wrong problems.
1. Establish limits on our balance or trade deficit.
2. Develop domestic manufacturing assisted by tariffs where needed.
3. Change our “free trade” agreements.
4. Do whatever it takes to prevent present mercantilistic practices designed to put our companies out of business.
If we fix the basics of our economy, everything else will fall into place.