WATCH: What’s the right question to ask about a manufacturing revival? | Alliance for American Manufacturing. On ABC NEWS posted this video on March 31, 2014, George Stephanopoulos interviews Steve Rattner, the former auto advisor and Zachary Karabell, analyst regarding manufacturing status in the USA. Length of video 7:21.
The USA lost 6 million jobs in manufacturing from 2000 – 2009 due to the results of the World Trade Organization agreements, signed into law 1995 with its gradual repeal of quotas over 10 years, and The Great Recession. The great resurgence of manufacturing since 2010 has created only 600 ,000 new manufacturing jobs.
Although the Obama administration has called for a resurgence of American made products, the only resurgence in manufacturing was due to the hard-fought but extremely small stimulus package passed in 2009. As the stimulus effect has dwindled so has the resurgence in American manufacturing. Politics have gotten in the way of the movement of increasing American manufacturing. One would think that nobody would be against this movement, but you would be very wrong and you would be surprised by whom. For one, the big corporations do not want American manufacturing coming back to the USA. (They love the status quo- making bigger profits by outsourcing American jobs without repercussions from the public. They are working hard but quietly behind the scenes). And the GOP is in the pockets of the big corporations, certainly there are plenty of Democrats that are on the bankroll of big corporations as well. Therefore, I can boldly predict that nothing will get done regarding American manufacturing, not in this administration- remember we are dealing with “DO Nothing” Congress and it doesn’t matter if it is to the detriment of the country. What if the GOP takes over in 2016? Then, there certainly won’t be jobs coming back to the US from overseas. Plus, probably another bad Free Treaty like the Trans-Pacific Pact will pass and permanently bury American manufacturing forever – it is even possible that this could happen this year. If another Democrat wins the presidency in 2016, who knows.
So what does this mean for the Frugal Superpower, the USA? US manufacturing, currently second in the world, will slip to third after Germany in a couple of years. And it will deteriorate quickly from there. The United States will have to vacate the Head of the table status to China. Yes, seriously. Just because the U.S, had the biggest military doesn’t mean it can run the global economy and global politics the way it does now. We will be more like the United Kingdom, once a great superpower, now an impotent ally. Those that pooh pooh this notion, some free trade advocates think that China will not rule because the US could simply turn off the spigot to Chinese imports. However, China is still by far the number one exporter to all the rest of the world. They would be stung by a boycott by the US but it wouldn’t stop its momentum. So, get ready to bow down to China, the ruler of the world by 2020.