Thursday, December 8, 2011

Manufacturing Policy

There is none, but at least someone is talking about it.  Manufacturing is near and dear to me.  I work in it now as a supervisor and have been around manufacturing the bulk of my adult life.  Environmental, Health and Safety, Engineering and now, Supervision.  Graphite, Spring-making and Machining.  Based on what I've seen, here is what I think:

What the manufacturing policy should be:

1. Encourage modernization through tax policy (i.e., keep the cost of capital low and make the tax ramifications of new equipment low. I realize the 99% won't like that, but tough)

2. Instead of indoctrinating children in the public schools, actually teach them something useful. Get out of the "social justice", "green" and "peace" business in the schools and there will be money for classes like "shop"

3. Common sense workplace and environmental regulation. Stuff like "Greenhouse Gas Reporting" is strangling business.

4. Make nice with those who choose to make nice with us. Places like China need us more than we need them when it comes to trade. We are still their biggest market.

5. Get out of the way

A consumption-based economy is not a bad thing. What is the alternative? If people don't buy and consume goods, there is no market. The debt part is where we get hurt. Both consumer and I think more importantly, government debt. Government debt is killing Europe and enslaving the US to places like China. Stop it now.

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