Louis Uchitelle makes a plea for the government to help restore this country's manufacturing base. He thinks the currently fashionable idea of "invent it here, make it there" is really unworkable if one wants to have a country with a strong manufacturing industry.
Uchitelle describes the policies China and Germany follow to keep and grow their manufacturing bases. For example, China is subsidizing companies in industries they think are important, such as solar energy. The German worker has a large say in where companies expand. Uchitelle reminds us that these and most other major countries have an industrial policy, we don't and, in fact, shy away from even coming close to establishing one. Other things that we could try include: tariffs, import quotas, lower the value of the dollar, repeal the ability companies have to shelter international profits from taxation.
This issue is not new. Manufacturing employed 26% of the workforce in 1960. Fifty years later it employs 10%.
No comments:
Post a Comment