Apple (like many giant, multinational corporations) has been avoiding paying the taxes they owe to the country by setting up foreign “subsidiaries” in tax-haven countries and moving jobs and profit centers out of the country. They have accumulated billions upon billions of dollars in these tax havens. Now they want a special tax break to reward them for doing that.
The Washington Post today published a special section—in print and on the Web—about what some say is a resurgence of “Made in America” manufacturing.
In the section’s anchor piece, Brad Plumer writes that some U.S. firms have “reshored” their manufacturing operations in the United States and that even some Chinese companies have located new plants here. He cites a narrowing wage gap between U.S. workers and their foreign counterparts, lower energy and transportation costs and automation as key drivers in moving manufacturing to the United States.
If the United States implemented trade policies to end currency manipulation—especially by China—not only would that reduce the U.S. trade deficit by $190 billion to $400 billion over three years, it would be a major first step in reviving the nation’s manufacturing sector and creating up to 4.7 million jobs, according to a new report from the Economic Policy Institute (EPI).
Freshman Sen. Chris Murphy (D-Conn.) says one of his top priorities in the Senate is advancing a “Make It in America” jobs agenda. Murphy, who founded the House “Buy American” Caucus, outlined that agenda in a conference call Wednesday sponsored by the Campaign for America’s Future and the Alliance for American Manufacturing.
“Buy American.” “Made in America.” In today’s interconnected world, those ideas might seem more like leftovers from the Cold War—not important maxims for America’s future. After all, young Americans are drinking Colombian coffee in the morning, skyping with friends in the U.K. at lunch, buying a made-in-China iPhone in the afternoon and drinking Italian wine in the evening. The idea of “Buying American,” or economic patriotism, might seem quaint, if not outright ridiculous.
Fact is, making things in America isn’t an obsolete idea. It’s how we built this country into the largest economy the world has ever seen. And it’s imperative for America’s future.
We expect tonight’s debate will include more fantastical claims from Mitt Romney, and to inoculate you against “Romnesia,” we include some notes on the actual Romney-Ryan record. Despite Romney and Paul Ryan’s history of enthusiasm for outsourcing American jobs to China and elsewhere, they claim they would somehow be “tougher on China” than the Obama administration has been. We want to make sure you know about the real Romney-Ryan record on China before Romney tries to “etch-a-sketch” it away this evening.
The Obama administration today announced that it will take action against unfair trade practices by China in auto part exports to the United States and tariff barriers against the import of American-made cars to China. Meanwhile, over the weekend, the Boston Globe detailed Mitt Romney’s business and personal investments in Chinese manufacturing companies. AFL-CIO President Richard Trumka says the administration’s action is:
Good news, not just for workers who rely on the auto industry, but for the entire American economy.
Trade deficits matter: 2.7 million U.S. jobs have been lost over the past decade due to our nation’s growing trade deficit with China, according to a new report out today (click on chart to expand).
“The China Toll” also shows that between 2001—when China was admitted into the World Trade Organization—and 2011, the U.S. trade deficit with that nation eliminated or displaced 2.1 million manufacturing jobs. Those jobs represent more than half of all U.S. manufacturing jobs lost during that time.
This is a cross-post from The Huffington Post by Stan Sorscher, labor representative for the Society of Professional Engineering Employees in Aerospace/IFPTE Local 2001 (SPEEA/IFPTE).
The other day, I had lunch with an economist I respect and admire. I asked him, what would it take for China to become a modern democracy and build a strong middle class?
OK. I didn't ask him that. I told him that China would need strong institutions of civil society and a deeper sense of a social contract to become a stable modern democracy with a dynamic middle class.