How Can the U.S. Economy Recover Without Manufacturing Capacity?

"You can't put people to work in American factories that don't exist."





The strength of the federal economic stimulus package is seriously diluted by the fact that many of the manufactured goods that will be purchased for the attempted recovery must be imported from outside the United States. America simply doesn't make lots of things, anymore. That means many billions of dollars that folks assumed would go towards fueling an American economic comeback, will instead provide work and paychecks to employees in other countries, that still have manufacturing bases. That's fine with the U.S. Chamber of Commerce, which is dominated by large multinational corporations - the same guys that began stripping the United States of manufacturing jobs decades ago.

The U.S. Chamber of Commerce was one of the main lobbyists opposed to provisions that would have mandated that stimulus money go to U.S. companies. The Chamber is a U.S. organization in name only, like its finance capital comrades, the guys that gave the world such a bad case of the dreaded "American Disease," much of the planet is praying that cash-rich China will eventually bail everybody out.

The United States' lack of a manufacturing capacity makes it even less likely that anything resembling a lasting recovery can emerge from President Obama's approach to the economic crisis. The infrastructure projects that are supposed to be central to the recovery scheme are only valued at $150 billion - which is not much of a jolt, especially when much of what will have to be bought is only available in other countries, made by foreign workers. Barack Obama has put a huge emphasis on building a green economy. However, according to the New York Times , most of the sources of solar panels and wind turbines are located in Europe and Asia. There can be no green economy without a mass transit makeover of the United States, but the U.S. hasn't made subway and light rail cars in many years. They'd have to be imported.

"Most of the sources of solar panels and wind turbines are located in Europe and Asia."

Every product that must be imported for the infrastructure project means a watering down of the stimulus impact of the dollars spent. You can't put people to work in American factories that don't exist.

A true national recovery effort would mean re-industrialization, on a grand scale and a green model, through massive direct federal creation of state-owned industries independent of the finance capitalists who murdered American manufacturing and then blew up their own businesses on Wall Street. But this is already nearly impossible, since President Obama is committed to saving the banking class through unlimited infusions of public money, and then allowing these reborn zombies to resume their roles as lords of development. The bankster parasites have neither the capacity nor the intention to build anything other than mountains of debt for the rest of us. Therefore, Obama's partnership with them spells doom for national recovery.

Like Billy Preston said, " Nothin' from noth in' leaves nothin'."The U.S. cannot create the conditions for economic health without rebuilding a manufacturing capacity. And the remnants of Wall Street have nothing to contribute to an economic recovery, but an infinite capacity to steal.

By Glen Ford

For Black Agenda Radio, I'm Glen Ford. On the web, go to www.BlackAgendaReport.com .

BAR executive editor Glen Ford can be contacted at Glen.Ford@BlackAgendaReport.com

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Comments

D. Clarke

26 Feb 09, 07:57 US Economic Recovery

I'm glad someone finally said it. You are so right about the essential need for America to be producing SOMETHING besides mountains of debt. What we are left with is selling off our infrastructure: roads, airports, water systems, electrical systems, etc. (most of which is state-owned), our real estate, and the basis of our natural resources: mines, river/dams, ports, forests, etc. All the things that took 400 years to build and which maintain the US as a powerful sovereign, independent country and which should NEVER be sold. And when all that is sold off to foreign buyers, what's left?

Bill Dollar

27 Feb 09, 07:13 Phony Economy

Without a foundation, a house wont stand. The foundation of any economy is manufacturing. This phony economy WILL fall. BHO is just delaying the inevitable with this bailout as this much debt will be unrecoverable. Have a nice day.

Thomas Golding

02 Mar 09, 00:44 Manufacturing USA

Glade to hear, at last, someone who states the obvious. Guess it is too simple for our politicians to understand. They prefer convoluted service economy theory. Thanks, Thomas

Greg

13 Mar 09, 09:06 Inconvenient Fact

The fact is that the US is still the largest manufacturer in the world. Quite a bit larger as it turns out. see http://investing.curiouscatblog.net/2008/09/23/top-manufacturing-countries-in-2007/ Don't believe the media hype!

Jonathan M. Feldman

19 Apr 09, 09:14 Mass Transit Reindustrialization

I agree with this article and invite those interested in a reindustrialization agenda to take a look at my article. It chronicles decline in mass transit manufacturing and how this trend can be reversed. http://www.prospect.org/cs/articles?article=from_mass_transit_to_new_manufacturing

tim Wilcox

05 May 09, 11:52 Manufacturing

There are reasons other than conspiracies and poor-me syndrome that America does not possess a large manufacturing sector. Can you guess it?

daniel k

16 May 10, 15:55 collapse then recovery

No need to worry, guys, there will be a recovery. It's going to require that we collapse first, but the truth is we can't fail in the long run. It's going to take a super collapse for us to realize that we can't do the things we do. We can't screw bolts onto a car for 50 bucks an hr. When we realize this and just accept what we can get then we'll recover. The reason China gets all the work is because their employees will work for what they can get to survive. We have to get back to the basics and quit wanting all of this excess, all of this crap that we've been brain washed into wanting and just want the simplest things like a house and a happy family. not cable television, sports cars, and all of this technology that really is just a distraction from each other. When we finally collapse and everyone goes through a reality check, we will see us come back and become more strong and influential than ever!

Owen

17 Aug 10, 13:31 Daniel k

Daniel K I don;t think they should get $50 an hour but how about 20 or 25? All these people from 1950 on got paid well enough to raise a family. The owners of the companies got rich. So why should we work for 8 dollars with no benefits to compete with China?

Shelby Moore

17 Aug 10, 15:02 Manufacturing myth

Greg, I suspect intuitively that much of that so called manufacturing in the USA is military spending and its multiplier effect. It is not a sustainable type of manufacturing, rather a subsidy and a symptom of our socialism orgy. You will find companies like Boeing, Northrup, Lockheed, Ratheon, Haliburton, etc... Owen, we indeed could do well at any wage, even $8, if we would stop stealing from ourselves: http://www.marketoracle.co.uk/Article21650.html http://www.marketoracle.co.uk/Article21925.html#comment93897 We have to first starve the socialism, which means collapse. Then we can recover with a smaller govt and build back up again (unfortunately probably the end of the nation states and the start of a new world government unless more people stop using debt and interest rates). As for competing with the 6 billion poor people in the world, you will have to. They have just as much as you do to the world's resources. You were able to steal from them from past decades and keep them beaten down. You don't realize it, but the fiat system enabled this. No it is pay back time. Prepare.

Shelby Moore

17 Aug 10, 15:07 $8 per day

Hope you realize in China (and the other billions of poor in world) that is $8 per day, not per hour. Are you prepared? Got gold and silver yet for the hyper-inflation that will revalue the world system so your wages are equivalent to $8 per day in 2010 dollars? The only question is "are you prepared?". Because no amount of talking and politicing is going to prepare you.



30 Nov 10, 14:58 USA No Longer a Super Power

There is not doubt that USA is not only no longer a super power but also will enter in many new social and economical problems that will have the same destiny as USSR. All signs show and confirm this reality. There are clear signs that new fast growing super powers will take the world economy control fully in hand and USA has no choice unless accepting the break down American way of life (with all of its high standards can not be financed. not only by US government but also no other system can feed such way of life in the intelligent world of these days that there is no nation to capitalize and there is no area to occupy and steel its resources ) USA is finished

