The Command Post
2004 US Presidential Election
July 25, 2003
Lieberman to Revive US Manufacturing (or subsidize it at least)

David Lightman is discussing Lieberman's plans for reviving the economy today. It’s an expensive plan ($10 billion or more) including cuts in corporate welfare, and limiting non-military federal spending to the rate of inflation. Yet, free trade Dems are likely to take issue with the part that proposes the resuscitating the US Manufacturing sector.

It has 17 components for reversing the decline in American manufacturing. Some involve taxes, such as creating an American Manufacturing Tax Credit that the senator says would reward companies for the percentage of manufacturing production they keep in the United States.

He would also eliminate the capital gains tax for multiyear investments in small and mid size manufacturing companies and give a credit for new purchases of information technology.

TNR's Primary gives Lieberman a B for the move, but its likely the cost and the controversial focus on manufacturing will disappoint some mainstream, more affluent supporters. At any rate, given Hoffa's stiff warning earlier this week about presidential hopefuls heeding labor's needs, Lieberman's timing is perfect and should help solidify some of the labor minded left.



Posted by Mike Van Winkle at July 25, 2003 12:40 PM | TrackBack
Comments

Might as well tear up all the free trade agreements at the same time.
Subsidies to uncompetitive American companies will result in trade wars with other countries, (lawyers like that though)
And who is going to buy this stuff? other countries can also toss on tariffs as well.
So we have LIEberman talking about undoing all the trade progress made, and returning to protectionism.
Sorry, that won’t feed America’s 280 million anymore.
Is he sure he’s a Democrat? sounds more Republican to me, LOL
Or just a plain stupid.

Posted by: Get Real at July 25, 2003 03:42 PM

When I haven’t been drinkin’ beer all night, I think I’d like to discuss this. I’m not sure about all this ‘world trade’ crap. I’m kinda thinkin’ we take care of ourselves, first. F—k the guys that make their population slave labor. Cheaper isn’t always better.

Posted by: Jeff B at July 25, 2003 11:36 PM

I am not sure about the trade agreements, but do know that people are having a hard tijme finding work, keeping manufacturing jobs in USA would help alleviate that problem.

Posted by: sophia at July 27, 2003 12:10 AM

Wanna really flip out, Sophia?

You know how when you call for customer support on your cell phone, maybe your computer, you often seem to be talking to someone from India?
Guess what?
They ARE in India. Ask ‘em. They’ll tell you they’re in Bangalore.
How’s THAT for shipping jobs overseas?

Posted by: Seth at July 27, 2003 05:25 AM

jeffb,
what is wrong with USA manufacturing, the steel industry, etc.

Can’t compete. while you can say that the USA can, (and does) supply alot of it’s own domestic need, that doesn’t help with the GNP. You must export more than you import to have growth.

Some people think that foreign cars are hurting US auto plants.
This isn’t true, because most of those cars are made right here in the usa also. Now, look at the practices of Ford, GM, Chrysler. They moved alot of parts manufacturing to mexico, and overseas.

Steel is another dying business in the usa. Why? because iron is imported, then smelted domestic.
it’s just too costly. This is why you see alot of American steel companies moving to canada, where ore is cheap, and transportation isn’t so expensive. Recycling seems to be the only viable steel industry in the USA simply because there is always a local source of material near any large city.
Lumber, American companies import alot of lumber, a raw material, and it’s made into a finished product in the USA. This stupid greed grab by American lumber companies re border tax on canadian imports doesn’t hurt canadians, it hurts the American consumer, costing 30% more for everything wood. Only a very few American lumber companies are profiting from that. All it did was drive up housing costs.
Plus, it makes exported finished products like furniture more expensive, couple that with the high dollar, and we become uncompetitive globally.

we have no problem suppling our own goods for ourselves, but we have to export beyond that, or we continue to have trade deficits, which erodes our manufacturing even more.
Also, by subsidizing our industries, the WTO will add tarrifs on exported goods, which will further reduce export sales.
So, while manufactering is in a slump, it’s partialy due to changing global conditions, other countries aren’t buying, because they are broke. Look at france and germany, they are in a bad reccession, so that reduces exports, which effects manufacturing.
The only country that is importing alot of American goods at this point is Canada, because the have a strong economy, and trade surplusses. They are also a strong supplier of raw materials to the USA.
adding tariffs imports from them just increases our input costs of turning the raw material into manufactured items.

Posted by: get real at July 27, 2003 11:47 AM

So, what is LIEberman going to do? regime change in germany and france to get their house in order again?
Global stability is a must for good global trade. wait till iraq and Afghanistan get moving again, then you will see industry pick up in the USA.

Bush is making a worthwhile investment, some just don’t see it in this way

Posted by: get real at July 27, 2003 11:51 AM

Get Real said, “The only country that is importing alot of American goods at this point is Canada, because the have a strong economy, and trade surplusses. “

They also buy our domestic new vehicles for 5 to 8 grand less than our dealers here pay for them. Figure that one out. That’s why, for example, a lot of US dealers were importing Dodge trucks from Canada and selling them here for 5-8 grand less than the dealer down the street.

On other issues, if the unions (mafia) hadn’t bled the industries over the years, they might still be thriving, or at least able to make it through a downturn. Instead, the people that paid the dues are out of a job, the industry has had to bankrupt, move out of the country, or automate, and the union people are living well in Las Vegas…….watching their investments.

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Posted by: ali at November 15, 2003 08:47 AM

hello everyone, I am a college student and wanted to respond to the comment on the free trade issue. I believe that the US should open up its barriers just as should all countries. the world trade organization’s goal is just that. You see, there is such a thing called “comparative advantage” in international trade. If a country is not as productive as another, that country should not be producing it. If each country specializes in their respective commodities, every country would have something to offer.
STEEL IS NOT THE ISSUE HERE, AGRICULTURE IS!
Why do you think some less developed countries left from the WTO assembly held in Cancun, Mexico a couple of months ago.
The US should not be exporting as much agricultral products as it is, maybe this is something that should be taken into consideration.

Yes, many jobs in the US agricultural sector will suffer, but in the future it will benefit us because these small countries will want to and have the capability to buy from us our capital intensive products.

Posted by: mariano at December 7, 2003 08:57 PM

There’s a fine line between genius and insanity. I have erased this line.

Posted by: Baer David at December 11, 2003 04:08 AM

Some nonsense now and then is relished by the wisest men.

Posted by: Pedraza Aurora at January 19, 2004 03:17 PM

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