Tuesday, October 20, 2009
Blog
This week I read an article entitled Can the Future be Built in America?: Inside the U.S. Manufacturing Crisis from the magazine BusinessWeek. Pete Engardio wrote this article and it discusses manufacturing in the United States of America. The main issue in the article is that the United States is decreasing in large-scale high-tech manufacturing production. However, it appears that smarter tax policies, low-cost loans, and special industrial zones may increase manufacturing production again. Many manufacturers would prefer to keep their market in the United States, however, due to the current economic situation; they believe that they will experience more success in other countries due to financial realities. Many other nations have much lower taxes than the United States and more generous government incentives. It is also much easier for manufacturers to raise cheap funding in other areas of the world because, in the United States, private investors frown upon manufacturing and it is nearly impossible to attain any bank lending. Most manufacturers that are capable of starting a new manufacturing “renaissance” in America are moving to other countries for business because they find it nearly impossible to achieve scale in the United States. Many of these manufacturers are creating new products which will be very troublesome to the United States because those products will be credited with being developed in other areas of the world. Unless the United States can resurrect its manufacturing base, good-paying jobs will continue to prevail in other areas of the world.
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