For most Americans the economy has not gotten better. A new survey from the Federal reserve reports that fewer than one-third of Americans believe they are better off financially than they were five years ago, with a lack of household savings and large debt burdens holding back large segments of the economy.
Tag Archives: Manufacturing
The United States is facing economic disaster on a scale few nations have ever experienced. Most people are unaware of the easily observable signs of this crisis, where it came from and how to stop it. While we persist in our superpower mentality, we have quietly become a second-class country in many respects.
On August 12th 2014, Detroit’s major creditor objected to the bankrupt city’s plan to reduce the billions of dollars in debt. The largest municipal bankruptcy in U.S. history is set for trial this month on August 21st. Detroit filed for bankruptcy over a year ago, claiming it had no way to pay off the estimated $18 billion in debt. Recently, retirees in Detroit had to vote to approve a cut to their pensions in order to save a buck for the municipality.
Detroit was once considered a manufacturing giant and the 4th largest city, with high employment, it was brimming with blue collar jobs. Now it faces an unemployment rate which has been over 16% since May of 2008 and has shrunk to the 18th largest city in America. This quick erosion of the tax base has left Detroit with $18 billion in debt.
An active industrial policy geared toward recovering our manufacturing capability can work and has worked. There are many examples of this from U.S. history championed by both sides of the aisle. In fact, tariffs effectively built the wealth of this country and have been a very valuable tool for managing growth for the better part of 200 years. We should not strive to return to colonial “subject” status with respect to today’s new economic imperialists in Japan, China, Germany, the United Kingdom, the Netherlands, or Mexico.