Monday, January 30, 2012
Made in America
"Foxconn opened robot factory in USA"
"China lost millions of manufacturing jobs."
This is the new American dream and future vision of the American president. In his State of the Nation Speech President Obama asked the Congress to "Stop rewarding businesses that ship jobs overseas, and start rewarding companies that create jobs right here in America." The goal is to bring back manufacturing to the America. Obama's message to business leaders was: "Ask yourselves what you can do to bring jobs back to your country, and your country will do everything we can to help you succeed."
Obama proposes no tax breaks for moving jobs and profits overseas, lower taxes for companies that choose to stay and hire in America, American manufacturer should get a bigger tax cut, double tax deduction for high-tech manufacturers, relocation should mean help in financing a new plant, equipment, or training for new workers.
War Against Trade Pirates
To bring back jobs to America Obama will double U.S. exports, opening of new markets for American products and fight trade cases against China, piracy and subsidies. He announced a new Trade Enforcement Unit that will be charged with investigating unfair trading practices in countries like China.
New Start or Old Mercantilism
The Alliance for American Manufacturing's (AAM) welcomes Obamas proposal to fight against unfair trade practices especially in China and call " a package of innovation, education, insourcing, tax, trade, and infrastructure incentives as a good start." AAM´s own agenda is to expand American production, hiring, and capital expenditures, invest in America’s infrastructure, enhance our workforce, make trade work for America, rebuild America’s innovation base
5 Million Jobs lost to China
According to AAM the U.S. lost in the last decade due to 5.5 million lost manufacturing jobs plus at least $245 billion in manufacturing wages, exclusive the “ripple effect” through other sectors. AAM claims that ending China’s currency manipulation would create more than 1 million jobs, add to economic growth, and reduce the budget deficit by $500 billion over the next six years. If California had held its share of manufacturing jobs from 2000-2007, its state budget would be in balance.
According to a study of the Economic Policy Institute (EPI) 2.8 million jobs, largely in manufacturing, have been lost as a result of the growing U.S. trade deficit with China since that country’s entry into the World Trade Organization (WTO) in 2001.
3 Million Jobs back to USA
New research from the Boston Consulting Group (BCG) in Chicago suggests transportation goods such as vehicles and auto parts, electrical equipment including household appliances, and furniture are among seven sectors that will reach a tipping point by 2015 and could create up to 3 million jobs as some of the manufacturing returns to North America. BCG expects the trend to accelerate starting in the next five years.
Chris Kuehl, economic analyst for the Rockford, Ill.-based Fabricators & Manufacturers Association Intl. (FMA), notes the rising costs of production in China has become a major concern for the Chinese. He claims that wages and salaries have been going up fast in China – estimates are that wages have risen by more than 1,000% in the coastal regions just in the last year or so. China is now losing ground to rivals in other parts of Asia and to nations such as Mexico, where wages have risen by less than 25%.
23 Million Jobs back to Europe?
Eurostat estimates that 23.674 million men and women in the EU-27, of whom 16.372 million were in the euro area (EA-17), were unemployed in November 2011. Compared with October 2011, the number of persons unemployed increased by 55 000 in the EU-27 and by 45 000 in the euro area. Compared with November 2010, unemployment increased by 723 000 in the EU-27 and by 587 000 in the euro area.
EU27 Youth Unemployment Rate 20%
Youth unemployment rates are generally much higher than unemployment rates for all ages. High youth unemployment rates do reflect the difficulties faced by young people in finding jobs.