Will Trump Restore American Manufacturing?
Now that the most excruciating election season of our lifetimes is over, it’s time to shovel off the stinking, rotting layer of excrement that has accumulated and try to guess whether or not our president-elect will follow through with his campaign promises. This article considers whether or not these promises will be good for our country in general, as well as plastic molding companies specifically.
President-elect Trump has said his administration will:
- Withdraw from the Trans-Pacific Partnership (TPP)
- Identify and end violations of trade agreements by foreign countries
- Renegotiate NAFTA
- Label China a currency manipulator and bring trade cases against them
- Rectify other trade issues with China including intellectual property violations
Rebuild American Manufacturing with Better Trade Partnerships
It’s no secret the American manufacturing industry has been ravaged by trade agreements and as a plastic mold maker we can attest that competing with countries that have lower labor costs has created a difficult business environment. According to the Economic Policy Institute, America has lost one third of its manufacturing jobs since NAFTA was signed, and 50,000 factories since China entered the World Trade Organization (WTO).
While trade agreements can help plastic molding companies that export goods, they often hurt the ones that don’t export. The companies that produce local consumer goods that compete with imported products are at a major disadvantage. While the innovation and productivity of American industry provides as much as 40% more output than China and other nations, the difficulty of competing with a workforce of children earning $1 per hour laboring for a company that considers producing your product for you during the day and for themselves at night “good entrepreneurial spirit”, remains a challenge.
According to the Economic Policy Institute, America has lost one third of its manufacturing jobs since NAFTA was signed, and 50,000 factories since China entered the WTO.
Given these factors, it becomes apparent that a United States that holds trade partners accountable will benefit plastic molding companies that seek to compete fairly in the global marketplace. Perhaps even more impactful than achieving this list of goals will be the perception by our trade partners that America will no longer tolerate trade violations, intellectual property theft, and international commissions overruling American law.
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