Sunday, February 19, 2012

Is Expanding Manufacturing a Sustainable Solution?

To foster job creation, President Obama ensured that Boeing’s biggest plant would be produced in the U.S. and exported to overseas. Along with building Boeing’s factory, President Obama pushes export by encouraging the Congress to continue financing Export-Import Bank. In developing export, the president also pushed China to increase its currency value during the Vice President’s visit last week.

I think it is a very good idea to expand manufacturing in the U.S., because it was not very balanced when there was almost not manufacturing in the country. It represents a tier of industry, bridging the primary sector of processing raw material and the third sector of service industry. I think it is important for a country to have coherent all industries, while the distribution of each may vary. However, I am a little concerned about merely bringing jobs by expanding manufacturing. I assume that they should be some fundamental changes, and the president making trade missions might not be a sustainable solution. The support for exports made lead to more deficit funding, and taxpayers will all shoulder the burden. We need to calculate the growth of manufacturing sector, examine how much it contributes to tax revenue, and compare it with the taxpayers’ burden. If the growth of tax burden exceeds the even growth of economy, then it would raise a red flag for business missions that bring back factories.

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