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Santorum: Manufacturing will be the focus of my presidency

Santorum: Manufacturing will be the focus of my presidency (Link from The Des Moines Register)

Rick Santorum, one of 21 GOP Presidential hopefuls, has made himself stand out from the rest: He has proposed increasing manufacturing in the USA. Just when you thought all of the Republicans were bought and paid for by Wall Street – who believe manufacturing is unnecessary in the USA, Mr. Santorum announced his new plan which is aimed at bringing American businesses back (from China and elsewhere). The plan involves a tax holiday or “Repatriation”. In other words, big corporations who have earned millions of dollars overseas are keeping their dollars overseas (usually in tax havens) because if they bring this foreign made money back, then they are liable for the foreign earnings they have made and would have to pay the appropriate tax rate on this – which in some cases could be up to 40%. (The GOP for years have been trying to get the government to give these businesses a tax holiday – no tax on bringing foreign earnings back, like when it was granted in 2004. It is estimated that $90 Billion is sitting out there overseas presently). Santorum proposes that we give these businesses a tax break on these foreign earnings but, if, only they invest this money into U.S. manufacturing. (This sounds a lot like one of my proposals from a couple of years ago, but mine was more specific.)

In addition, to boost manufacturing, Santorum proposed an increase in vocational programs, lowering the corporate tax rate, decreasing regulation, and enforcing trade laws already in place. As far as the rest of these proposals – an increase in vocational programs – that is the President’s idea which hasn’t gotten anywhere. Will a GOP Senate and House change their tune just because a Republican proposes it? Maybe.

As far as the other proposals: lowering the corporate rate and decreasing regulation – this is standard Republican propaganda – it must cure everything – because in a strict sense it could. Decreasing regulation could mean lots of things – to common sense people, it may mean easing up bureaucratic rules, but to severely Pro-business people, it can mean getting rid of: overtime, minimum wage, health standards, pollution standards – if all of these regulations are repealed (a wish of most big businesses), then the American worker could get the equivalent of what a Chinese worker gets (not much), so CEOs can get bigger bonuses, but I digress.

Except for the Repatriation aspect – the speech (see the top link) is all bluster. I wish Santorum were truly serious. If he were serious, he would close the tax breaks that allows companies to deduct expenses when they outsource their company to another country. If he were serious, he would be out on the trail and calling out countries who artificially deflate their monetary units (Chinese Yuan, Japanese Yen) which makes it easier for these countries to export their products into the US and making our Trade deficit expand exponentially. If he were serious, he would highlight the fact that the US outsources 2 million jobs each year. Ah, if only he were a genuine candidate.

I also have a new idea aimed at the U.S. Chamber of Commerce. Instead of being just a political entity, the Chamber of Commerce could actually promote business besides throwing social parties. My idea is that within each city or town, the Chamber of Commerce creates a website that if any new business wants to start a business in their town, that the appropriate Chamber of Commerce contacts the future entrepreneur. They would hand hold the new client through every step of the starting their new business: like finding the right place, negotiating prices, what permits to get, financing, inspections, etc. In other words, make it easy for someone to start a new business, just like all of these companies that make it so easy to offshore their companies to China, like itimanufacturing.com.

itimanufacturing - making it easy for US companies to offshore to China

itimanufacturing – making it easy for US companies to offshore to China

I saw this ad in the Southwest Airlines magazine – it always makes my heart sink when I see these type of ads. If you can’t read the writing, here it is: “ITI, an American company headquartered in Houston, has been helping clients manufacture goods in China for 40 years – boosting profits and reducing costs. ITI has unlocked the mysteries of foreign cultures, languages and trade customs, creating significant manufacturing savings over domestically produced goods – while maintaining or improving delivery expectations.”

“ITI handles all the logistics such as finding the right factory, negotiating prices, overseeing the tooling and factory production, quality inspections, financing, insurance, shipping, customs clearance and delivery. In fact, you pay nothing until the product is received in your warehouse, inspected and approved.”

“With full time ITI employees working n nine established offices in China, ITI can manage your overseas manufacturing – so you can focus on growing your business.”

Isn’t American capitalism great? Making money while cannibalizing American manufacturing – how unpatriotic. Maybe these companies should be on the Black market like ticket scalpers.

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1 Response to “Santorum: Manufacturing will be the focus of my presidency”


  1. August 3, 2015 at 7:08 pm

    I wrote a blog after seeing that ad too! šŸ˜‰ very annoying indeed. I like your blog!


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