Clyde Prestowitz is absolutely right that the United States needs a cohesive, forward-looking national industrial policy. And furthermore, he is correct in pointing out the “policies of China, Japan, Korea and others to undervalue their currencies.” Such mercantilistic trade practices are an excellent reminder that other major economic powers already maintain their own inwardly focused industrial policy.
Beyond GM: Our Bankrupt Industrial Policy
In the days leading up to the America’s Future NOW! conference starting June 1, we’re hosting an online dialogue featuring conference speakers on the key issues they will be addressing during the conference. Join the conversation by clicking the “Discuss” link below or contribute your own post.
Register today for the America’s Future NOW! conference in Washington.
This becomes particularly relevant when discussing the U.S. auto sector. In fact, more than 7.2 million U.S. jobs are dependent on a healthy U.S. auto parts supply chain.
What’s needed to strengthen the automotive supply chain and revitalize American manufacturing are policies that get America back to work.
Our organization, the Alliance for American Manufacturing (AAM) recently undertook an 11-state, 34-city bus tour that culminated in a teach-in on Capitol Hill. As we took our message across the country, we found strong support for a more reciprocal trade policy and for a restructured U.S. auto industry that doesn’t simply rely on the offshoring of more production in order to meet a shrinking bottom line. Simply put, tax dollars should not be used toward the outsourcing of more U.S. production.
We must revise our approach to trade policy, including strong enforcement of existing U.S. trade law. We also need to reform our healthcare system and invest in research and innovation in order to restore American manufacturing. Anything less is simply short-sighted.