We do not have jobs in this country because we buy all of our goods from overseas. USA today stands for United States of Asia when it comes to production. American companies like Apple and Walmart get all of their products from the continent of Asia. Would you ever think that popular American items like the iPod and iPhone were manufactured in the Peoples Republic of China. What about Walmart? The nation’s largest retailer would surely be the largest buyer of American goods. That’s not the case! Walmart is the largest buyer of Chinese imports in the United States.
Here are three things that we need to do to get job growth back in the United States.
1. We need a significant direct investment from the government.
The federal government needs to invest in the United States of America. We spend hundreds of billions of dollars annually building up Iraq and Afghanistan. However, we do not spend the same amount of money investing in our own country. We could undertake infrastructure projects that would provide employment to hundreds of thousands of workers. We could provide more sources of capital through the SBA to business ventures that produce goods domestically. Too much of our economy is tied too services. Banks would rather lend capital for financial reengineering than for actual enterprises that create value. Companies are incentivized to create financial instruments and not tangible products. Since the banking industry is not doing this then it is up to the government to lead the way.
2. We need a higher tariff on foreign goods.
Foreign goods should cost more than domestic goods. The way to do this is through more tariffs. There are always cries of protectionism whenever we talk about raising the taxes on foreign goods. Other countries put high tariffs, quotas, and restrictions on our products all of the time. China has engaged in protectionist policies for years. China has manipulated its currency and favored domestic companies over outside parties. Chinese officials have been guilty of ordering their departments to only buy materials and goods that were developed in China. Foreign firms are not treated the same when it comes to bidding on contracts in China. The country places strict restrictions on foreign companies seeking to compete in certain markets. If China has all of the rules to protect their industries then why do we in the United States not have similar policies?
3. We need to stop supporting retail outlets that do not support American industrial suppliers.
Who is the big beneficiary from consumers shopping at places like Walmart, Home Depot, and Target? It’s not the consumer. The winner is the large corporation. They are buying goods cheap from foreign companies and then making a substantial profit selling them in the United States. The savings are not passed on to the consumer but to the company’s bottom line. By buying products from companies like these most Americans are putting themselves out of work. The American manufacturing industry has left the United States and moved to poorer countries. These low cost retailers are helping to lower the standard of living for most Americans. The irony is the same people that the same people that are helping the big box retailers stay in business are having their wages driven lower by them. (Read how Poverty Is Increasing In America)
Final Thoughts
Our economy places a heavy tax burden on domestic goods whereas foreign goods do not face the same taxes. We have minimum wage laws, environmental protection laws, antitrust laws, child labor laws, and employee benefits. I am not suggesting that we get rid of these laws. We should however impose a value added tax (VAT) on foreign goods so that their prices are more in line with domestic goods. If we do not do something to address these problems then the American worker will continue to become extinct.
