Why Buy Local? What You Buy vs. Where You Buy
Where I live in Vermont, there is a strong impetus to keep your consumption as local as possible. The reasons are obvious. Keep your dollars local to support your communities and your neighbors. Even though the cost might not be as competitive, we feel it is a small price to pay to provide a regional economic stimulus.
There needs to be, however, an understanding about not just supporting a local business but also a local product. In terms of vegetables and cheese, that’s easy to do. Local farmers selling goods within their communities. In terms of automobiles, computers, and household goods, the decision is more complicated. You may buy an auto from your neighborhood dealership, but if the car is imported, does that really help our community? This thinking translates to any purchase made that involves an imported product. We at Amer1ca One feel strongly that there needs to be a balance between where you buy and what you buy. For instance, a $30,000 imported car only provides a local support of approximately 10-14% of that cost; $3000-$4400. Perhaps the concept of ‘local’ needs to be refined.
By in large, in business and economics, what goes around comes around. Although income is not distributed evenly, to a certain extent, an economy is like a rising tide. People in one region can influence the people in another. In Vermont and NH, where the number one industry is tourism, we rely greatly on visitors from Boston and New York. As their economies percolate, they permeate into other regions. As consumers, we need to realize that by just buying local, we may not be maximizing our influence to stimulate everyone’s regional economy. Imported goods are the kiss of death for local economic stimulation.
So when you consume, try to balance out the ‘Where You Buy’ vs. the What You Buy’. After all, you make your money in America, we encourage you to spend it on America. Thank you.
Friday, May 27, 2011
Friday, May 20, 2011
America Still Makes Stuff
America Still Makes Stuff
Most Americans are aware of the demise of manufacturing in the United States. Pick up an item in any clothing store, and you will see products from all over the world but probably nothing from America. Our day to day consuming gives one the impression that America doesn’t make anything any more. Simply not true.
Granted, our manufacturing sector has been shrinking since the 1960’s; from 33% of our economy to about 11% today, that still translates to almost 1.8 Trillion dollars in income. Only recently we have been surpassed by China but we still manufacture more than Germany and Japan combined.
Since manufacturing is crucial to our economic and social stability, it is crucial that every American recognize the need to consume with this in mind. Since consumers have enormous control to influence and determine what is sold, we urge you to exercise that power. Express your desire for ‘Made in America’ goods and ask any retailer accordingly. By pressuring our retailers, they will have no choice but to stock American goods. By supporting domestic products, we keep our dollars within our shores; thereby, stimulating our economy instead of others.
After all, you make your money in America, we encourage you to spend it on America.
Most Americans are aware of the demise of manufacturing in the United States. Pick up an item in any clothing store, and you will see products from all over the world but probably nothing from America. Our day to day consuming gives one the impression that America doesn’t make anything any more. Simply not true.
Granted, our manufacturing sector has been shrinking since the 1960’s; from 33% of our economy to about 11% today, that still translates to almost 1.8 Trillion dollars in income. Only recently we have been surpassed by China but we still manufacture more than Germany and Japan combined.
Since manufacturing is crucial to our economic and social stability, it is crucial that every American recognize the need to consume with this in mind. Since consumers have enormous control to influence and determine what is sold, we urge you to exercise that power. Express your desire for ‘Made in America’ goods and ask any retailer accordingly. By pressuring our retailers, they will have no choice but to stock American goods. By supporting domestic products, we keep our dollars within our shores; thereby, stimulating our economy instead of others.
After all, you make your money in America, we encourage you to spend it on America.
What Exactly Does 'Made in America' Mean?
What Exactly Does ‘Made in America’ Mean?
Many consumers want to buy products made in America. According to a recent Adweek Media/Harris Poll, a large percentage of Americans respond to an ad that identifies a product as being domestic.
18-34 Years Old 44%
35-44 61%
45-54 66%
55 and Older 75%
It is difficult, however, to know what exactly is ‘Made in America’. For instance, when one thinks about domestic automobiles, we identify with the Big 3. Cars.com has an American Made Index that rates vehicles built and bought in the US. Factors include sales, where the car’s parts are made and whether the car is assembled in the US. Here are the top 10.
1. Ford F-150
2. Chevrolet Cobalt
3. Chevy Silverado 1500
4. Toyota Tundra
5. Pontiac G6
6. Toyota Sienna
7. Ford Escape
8. Chevy TrailBlazer
9. Chevy Malibu
10. Ford Explorer/Sport Trac
Please note that Chrysler doesn’t have a single car on the list while Toyota has two.
When evaluating a product, there are several elements besides where it is assembled. In terms of an automobile, consider where the product is both designed and engineered, where the parts come from especially the engine and transmission, where it is assembled, and where do the profits go after it’s sold. To be fair, the Big 3 do most of their engineering and design domestically. Both Honda and Toyota also employ those skills within the US.
Regarding assembly, that equates to approximately 20-25% of the total value of an automobile. It is fine and well that Volvo, BMW, Mercedes, Hyundai, Kia and Volkswagen have assembly plants here, BUT, they are a minimal investment. When the major parts still come from overseas, it’s a modest contribution at best. They are what Mrs. Thatcher referred to as ‘Screw Driver Plants’. Please look at the Invoice attached to the car’s window. It does reveal the level of domestic content.
Finally, profits don’t stay within our borders. The money goes to help investment and capital improvement in other countries. That is a major justification to support the Big3.
Cars are much easier to determine domestic content than electronics. Let’s take the IPhone. Like so many electronic gadgets, the nuts and bolts are made in various countries in Asia. So does it make sense to get an IPhone vs. an Asian or Finnish brand? Absolutely. Apple does most of its design and engineering in the US. Since their products are extremely popular and profitable, those funds return to California to continue research and development on new products. That means getting an HP computer vs. an Hitachi makes good sense. At least some of the funds return to America.
Globalization has made the world difficult to understand. Even the concept of an ‘American company’ is a little hazy. In general, American companies are better to support than foreign ones, and foreign ones that include US content (Windows software, Intel computer chips, etc) are better than those who don’t.
Finally, what goes around doesn’t always come around. Since we run trade deficits with our top 9 trading partners (and with 12 of the top 15), we need to do our part to either keep our dollars within our shores. America has been good to us; as consumers, return the compliment.
Many consumers want to buy products made in America. According to a recent Adweek Media/Harris Poll, a large percentage of Americans respond to an ad that identifies a product as being domestic.
18-34 Years Old 44%
35-44 61%
45-54 66%
55 and Older 75%
It is difficult, however, to know what exactly is ‘Made in America’. For instance, when one thinks about domestic automobiles, we identify with the Big 3. Cars.com has an American Made Index that rates vehicles built and bought in the US. Factors include sales, where the car’s parts are made and whether the car is assembled in the US. Here are the top 10.
1. Ford F-150
2. Chevrolet Cobalt
3. Chevy Silverado 1500
4. Toyota Tundra
5. Pontiac G6
6. Toyota Sienna
7. Ford Escape
8. Chevy TrailBlazer
9. Chevy Malibu
10. Ford Explorer/Sport Trac
Please note that Chrysler doesn’t have a single car on the list while Toyota has two.
When evaluating a product, there are several elements besides where it is assembled. In terms of an automobile, consider where the product is both designed and engineered, where the parts come from especially the engine and transmission, where it is assembled, and where do the profits go after it’s sold. To be fair, the Big 3 do most of their engineering and design domestically. Both Honda and Toyota also employ those skills within the US.
Regarding assembly, that equates to approximately 20-25% of the total value of an automobile. It is fine and well that Volvo, BMW, Mercedes, Hyundai, Kia and Volkswagen have assembly plants here, BUT, they are a minimal investment. When the major parts still come from overseas, it’s a modest contribution at best. They are what Mrs. Thatcher referred to as ‘Screw Driver Plants’. Please look at the Invoice attached to the car’s window. It does reveal the level of domestic content.
Finally, profits don’t stay within our borders. The money goes to help investment and capital improvement in other countries. That is a major justification to support the Big3.
Cars are much easier to determine domestic content than electronics. Let’s take the IPhone. Like so many electronic gadgets, the nuts and bolts are made in various countries in Asia. So does it make sense to get an IPhone vs. an Asian or Finnish brand? Absolutely. Apple does most of its design and engineering in the US. Since their products are extremely popular and profitable, those funds return to California to continue research and development on new products. That means getting an HP computer vs. an Hitachi makes good sense. At least some of the funds return to America.
Globalization has made the world difficult to understand. Even the concept of an ‘American company’ is a little hazy. In general, American companies are better to support than foreign ones, and foreign ones that include US content (Windows software, Intel computer chips, etc) are better than those who don’t.
Finally, what goes around doesn’t always come around. Since we run trade deficits with our top 9 trading partners (and with 12 of the top 15), we need to do our part to either keep our dollars within our shores. America has been good to us; as consumers, return the compliment.
Saturday, May 14, 2011
Free Trade Fallacy
Most economists, politicians and Americans believe that trade should be free. Good and services should travel from country to country with minimal difficulty and resistance. The beauty behind free trade is that it should be a ‘win-win’ situation for all participants. It is assumed that ‘free trade’ will also become ‘balanced and fair trade’ in which there is a sense of parity among participants. Sadly, for America, that has not become the case.
As you can see from the chart below (US Census), we run trade deficits with our top nine trading partners and twelve of the top fifteen.
The largest U.S. partners with their total trade (sum of imports and exports) in billions of US Dollars for calendar year 2010 are as follows:
Exports Imports Total Trade
Canada
248.8 76.5 525.3
China
91.9 364.9 456.8
Mexico
163.3 229.7 393.0
Japan
60.5 120.3 180.9
Germany
48.2 82.7 130.9
United Kingdom
48.5 49.8 98.3
South Korea
38.8 48.9 87.7
France
27.0 38.6 65.6
Taiwan
26.0 35.9 61.9
Brazil
35.4 29.3 59.3
Netherlands
35.0 19.0 54.0
India
19.2 29.5 48.8
Singapore
29.1 17.5 46.6
Venezuela
10.7 32.8 43.4
Saudi Arabia
11.6 31.4 43.0
There are numerous reasons for the imbalance in which the finger of responsibility can be pointed in all directions. Here are just a few.
American Mistakes
1. Companies have focused far too long on domestic market share instead of enlarging their sales overseas. Only 1% of our companies do 80% of our exporting.
2. Many US companies have moved their manufacturing facilities abroad; thereby, becoming importers to America.
3. Politically, we have embraced the virtues of free trade while allowing other countries to disregard those values.
4. American consumers are oblivious to the need to support domestic industries.
Trading Partners
1. Many countries with flat domestic consumption (Germany, Japan, Sweden) look to overseas markets (America) to increase sales.
2. We allow our largest importer, China, to manipulate their currency to our detriment.
3. Many countries have not only trade barriers but cultural and social barriers as well. The Japanese will not buy a computer from an American company, nor rice that would cost half the price. China has huge duties on American autos while insisting that major products be made in China.
4. Many countries protect their domestic industries either through direct government funding or subsidized loans. As a business model, Air Bus would never have gotten off the ground without huge subsidies and support. During the recent ‘Great Recession’, there was never any discussion in Europe or Asia about whether or not to support their automobile industries. It was a done deal.
If we wish to influence our trade deficit and help create American jobs, you can do so that as a consumer. Please consider taking the Amer1ca One Pledge.
1. Ask or determine where a product is made.
2. If possible and affordable, consider the American item first.
3. Let retailers know that you are searching for ‘Made in
America’ products.
4. Encourage other family members and friends to do so.
We all have the ability to create jobs and influence change. Please do so with your wallet. After all, you make your money in America, try to spend it on America. Thank you.
As you can see from the chart below (US Census), we run trade deficits with our top nine trading partners and twelve of the top fifteen.
The largest U.S. partners with their total trade (sum of imports and exports) in billions of US Dollars for calendar year 2010 are as follows:
Exports Imports Total Trade
Canada
248.8 76.5 525.3
China
91.9 364.9 456.8
Mexico
163.3 229.7 393.0
Japan
60.5 120.3 180.9
Germany
48.2 82.7 130.9
United Kingdom
48.5 49.8 98.3
South Korea
38.8 48.9 87.7
France
27.0 38.6 65.6
Taiwan
26.0 35.9 61.9
Brazil
35.4 29.3 59.3
Netherlands
35.0 19.0 54.0
India
19.2 29.5 48.8
Singapore
29.1 17.5 46.6
Venezuela
10.7 32.8 43.4
Saudi Arabia
11.6 31.4 43.0
There are numerous reasons for the imbalance in which the finger of responsibility can be pointed in all directions. Here are just a few.
American Mistakes
1. Companies have focused far too long on domestic market share instead of enlarging their sales overseas. Only 1% of our companies do 80% of our exporting.
2. Many US companies have moved their manufacturing facilities abroad; thereby, becoming importers to America.
3. Politically, we have embraced the virtues of free trade while allowing other countries to disregard those values.
4. American consumers are oblivious to the need to support domestic industries.
Trading Partners
1. Many countries with flat domestic consumption (Germany, Japan, Sweden) look to overseas markets (America) to increase sales.
2. We allow our largest importer, China, to manipulate their currency to our detriment.
3. Many countries have not only trade barriers but cultural and social barriers as well. The Japanese will not buy a computer from an American company, nor rice that would cost half the price. China has huge duties on American autos while insisting that major products be made in China.
4. Many countries protect their domestic industries either through direct government funding or subsidized loans. As a business model, Air Bus would never have gotten off the ground without huge subsidies and support. During the recent ‘Great Recession’, there was never any discussion in Europe or Asia about whether or not to support their automobile industries. It was a done deal.
If we wish to influence our trade deficit and help create American jobs, you can do so that as a consumer. Please consider taking the Amer1ca One Pledge.
1. Ask or determine where a product is made.
2. If possible and affordable, consider the American item first.
3. Let retailers know that you are searching for ‘Made in
America’ products.
4. Encourage other family members and friends to do so.
We all have the ability to create jobs and influence change. Please do so with your wallet. After all, you make your money in America, try to spend it on America. Thank you.
Monday, February 15, 2010
A Conservative Argument to Buy American
A Conservative Argument to Buy American
In my home state of Vermont, I see countless bumper stickers (some of them actually holding the car together). One of the most common is ‘Think Globally, Act Locally’. Vermont does have a certain brand and identity that should be economically valued. Perhaps the word ‘locally’ needs to be redefined.
We certainly live in a globalized economy. Vermont farmers are competing with French cheese, Canadian maple syrup and Christmas trees, and beef from Brazil. As America’s trade deficit mushrooms and as unemployment rises, perhaps a more ‘American’ definition of local is called for.
During this past recession, America has lost over 7 million jobs and countless more are presently underemployed. Within that loss are almost 2 million manufacturing jobs; many of which will NEVER come back. Economists refer to this adjustment as the forces of Globalization. There needs to be a new economic force; one that is more sensitive to our neighbors, our environment and our nation. We think ‘locally/Americanly’ before we buy. Allow me to clarify the benefits and rationales.
1. Maintain Domestic Manufacturing Platforms
As America becomes a more service oriented economy, we have seen the manufacturing sector go from 33% to 12% of GDP. As this number continues to shrink, we are losing the ability to as Angela Merkel of Germany said, ‘to make things’. As we know from our history, we should not be reliant on other countries to manufacture items that our crucial to our sovereignty. Domestic manufacturing is essential to our own security.
2. Control of our Dollar and Foreign Affairs
China currently has over a trillion dollars in US Treasury Notes compliments of our unbalanced trade with them. Since we need those dollars to maintain our deficit spending, in a ‘backdoor’ way we are beholden to them. Since China currently runs an annual trade surplus of over $200 billion dollars, their coiffures of greenbacks will simply continue to growth.
It had been the hope that as China industrialized and developed a more vibrant middle class, their political policies would become more tolerant and democratic. Sadly, that has not been the case. The ruling communist clique has continued to maintain an iron fist on human rights, freedom of expression and even the internet. It is America’s duty to be the voice of freedom and democracy in the world. Since China has so much fiscal leverage over us, basically, we keep our mouths’ shut.
It is time to recognize that imbalanced trade with China is undermining us not just economically, but politically and socially as well.
3. Military and Political Adversary
As China’s wealth grows, so does its influence in the world. Often the positions of the US are dramatically different from those of China (Iran, North Korea, Africa and Taiwan). Our current level of trade is what finances their military growth. More dollars in the Chinese coiffures means more funds for defense, R&D, and an enlarged military presence. The Chinese position will become only more aggressive and confident.
4. Jobs and Social Stability
In general, manufacturing jobs do pay more than service oriented ones; especially at an introductory level. A middle class wage is crucial to provide stable housing and therefore, a stable environment for a family. Also, very simply put; working people pay taxes. The more they pay, the less our budget deficit becomes. If we are ever going to lower taxes, work with good wages must be provided to all.
There is a group of conservatives call the ‘Republicans for a National Interest’. Their voice is one that reflects conservative values while honoring the need for domestic production. Please review their website; www.nationalinterest.org for further clarification.
Like Japan forty year ago, China has either stolen or pirated billions of dollars worth of US technology (ex. Microsoft Windows). America has not spoken out about this issue. Importing products of minimal technological value has not hurt America’s economic position. However, it is only a matter of time before Chinese software, computer chips, hardware, etc. begins to flood the world’s markets.
It is not only Patriotic to buy American, but economically and politically necessary. It’s time to define ‘local’ as the land from sea to shining sea.
In my home state of Vermont, I see countless bumper stickers (some of them actually holding the car together). One of the most common is ‘Think Globally, Act Locally’. Vermont does have a certain brand and identity that should be economically valued. Perhaps the word ‘locally’ needs to be redefined.
We certainly live in a globalized economy. Vermont farmers are competing with French cheese, Canadian maple syrup and Christmas trees, and beef from Brazil. As America’s trade deficit mushrooms and as unemployment rises, perhaps a more ‘American’ definition of local is called for.
During this past recession, America has lost over 7 million jobs and countless more are presently underemployed. Within that loss are almost 2 million manufacturing jobs; many of which will NEVER come back. Economists refer to this adjustment as the forces of Globalization. There needs to be a new economic force; one that is more sensitive to our neighbors, our environment and our nation. We think ‘locally/Americanly’ before we buy. Allow me to clarify the benefits and rationales.
1. Maintain Domestic Manufacturing Platforms
As America becomes a more service oriented economy, we have seen the manufacturing sector go from 33% to 12% of GDP. As this number continues to shrink, we are losing the ability to as Angela Merkel of Germany said, ‘to make things’. As we know from our history, we should not be reliant on other countries to manufacture items that our crucial to our sovereignty. Domestic manufacturing is essential to our own security.
2. Control of our Dollar and Foreign Affairs
China currently has over a trillion dollars in US Treasury Notes compliments of our unbalanced trade with them. Since we need those dollars to maintain our deficit spending, in a ‘backdoor’ way we are beholden to them. Since China currently runs an annual trade surplus of over $200 billion dollars, their coiffures of greenbacks will simply continue to growth.
It had been the hope that as China industrialized and developed a more vibrant middle class, their political policies would become more tolerant and democratic. Sadly, that has not been the case. The ruling communist clique has continued to maintain an iron fist on human rights, freedom of expression and even the internet. It is America’s duty to be the voice of freedom and democracy in the world. Since China has so much fiscal leverage over us, basically, we keep our mouths’ shut.
It is time to recognize that imbalanced trade with China is undermining us not just economically, but politically and socially as well.
3. Military and Political Adversary
As China’s wealth grows, so does its influence in the world. Often the positions of the US are dramatically different from those of China (Iran, North Korea, Africa and Taiwan). Our current level of trade is what finances their military growth. More dollars in the Chinese coiffures means more funds for defense, R&D, and an enlarged military presence. The Chinese position will become only more aggressive and confident.
4. Jobs and Social Stability
In general, manufacturing jobs do pay more than service oriented ones; especially at an introductory level. A middle class wage is crucial to provide stable housing and therefore, a stable environment for a family. Also, very simply put; working people pay taxes. The more they pay, the less our budget deficit becomes. If we are ever going to lower taxes, work with good wages must be provided to all.
There is a group of conservatives call the ‘Republicans for a National Interest’. Their voice is one that reflects conservative values while honoring the need for domestic production. Please review their website; www.nationalinterest.org for further clarification.
Like Japan forty year ago, China has either stolen or pirated billions of dollars worth of US technology (ex. Microsoft Windows). America has not spoken out about this issue. Importing products of minimal technological value has not hurt America’s economic position. However, it is only a matter of time before Chinese software, computer chips, hardware, etc. begins to flood the world’s markets.
It is not only Patriotic to buy American, but economically and politically necessary. It’s time to define ‘local’ as the land from sea to shining sea.
A Liberal Argument to Buy American
A Liberal Argument to Buy American
In my home state of Vermont, I see countless bumper stickers (some of them actually holding the car together). One of the most common is ‘Think Globally, Act Locally’. Vermont does have a certain brand and identity that should be economically valued. Perhaps the word ‘locally’ needs to be redefined.
We certainly live in a globalized economy. Vermont farmers are competing with French cheese, Canadian maple syrup and Christmas trees, and beef from Brazil. As America’s trade deficit mushrooms and as unemployment rises, perhaps a more ‘American’ definition of local is called for.
During this past recession, America has lost over 7 million jobs and countless more are currently underemployed. Within that loss are almost 2 million manufacturing jobs; many of which will NEVER come back. Economists refer to this adjustment as the forces of Globalization. There needs to be a new economic force; one that is more sensitive to our neighbors, our environment and our nation. We think ‘locally/Americanly’ before we buy. Allow me to clarify the benefits and rationales.
1. Livable Wage
Forty years ago the largest company in America was GM. Now the largest employer is Wal-Mart. In the past we had a company (not that GM is the best business model) that paid excellent wages with benefits including health care and a retirement package. More importantly, these workers lived a middle class lifestyle with aspiration and opportunities for their kids. Sadly, Wal-Mart can’t come close to filling that void. Besides being the source of many of our imports (and therefore, lost jobs), they often pay marginal wages with minimal benefits. Presently, over a million Americans work for Wal-Mart. This is the environment that helped to create the term; ‘working poor.’ By supporting domestic products and services, we can help provide opportunities for those to escape the Wal-Mart trap. In other words, if you support the concept of a livable wage, then support American companies especially manufacturers.
2. Global Warming
The more we import from developing nations, the less we can control from an environmental perspective. If you are concerned about global warming, we must consider where our products are made. China is now the number one contributor to greenhouse gases (surpassing the USA) and will to create greenhouse gases disproportionately faster. Thankfully, America now has a vision to address this problem. By supporting more domestic production, it will be more environmentally friendly and a smaller burden upon our planet.
3. Health Care
America is quite unique in the world in that we generally offer health care via our jobs. As the cost of health care increase by 2-3 times the rate of inflation (now consuming 16% of our GDP), one in seven Americans lack adequate insurance. Equally important, millions of Americans either have marginal health care coverage or will soon lose whatever coverage they have. By supporting American industries especially manufacturers, we are creating better opportunities for workers to secure at least minimum health coverage.
4. Eliminating Poverty
It is grossly ironic that a large percentage of the poor actually work. Years ago, a job was what you ‘did for a living.’ In other words, you could live from your work. Not any more. Poverty tears at the fabric of society making it more precarious and insecure. Living paycheck to paycheck creates a society without roots (and a home), and causes considerable stress and strain on family relationships. It is also statistically true that crime drops when an economy improves. Do your part to contribute to an improving economy.
5. Upward mobility
America has always prided itself on being the ‘land of opportunity’ in which barriers can be overcome with hard work and diligence. Sadly, when struggling to make ends meet, one doesn’t have either the resources or the energies to improve oneself. Countless Americans have historically accomplished the Horatio Alger climb to success. Being a member of the working poor keeps you on the first rung of that economic ladder.
It isn’t easy buying ‘American’. It isn’t always clear what is American or not. We ask that you at least give it some thought. Make sure that an auto truly has American content besides just its assembly (The assembly is only 20-25% of the total value of a car. Ask where the car was designed, engineered, and where most of the parts came from.). This can also be very simply from the beer and wine you order, to the cheese you buy in the store. Remember, that every dollar spent domestically is multiplied geometrically through out our economy. Buy local, think American.
In my home state of Vermont, I see countless bumper stickers (some of them actually holding the car together). One of the most common is ‘Think Globally, Act Locally’. Vermont does have a certain brand and identity that should be economically valued. Perhaps the word ‘locally’ needs to be redefined.
We certainly live in a globalized economy. Vermont farmers are competing with French cheese, Canadian maple syrup and Christmas trees, and beef from Brazil. As America’s trade deficit mushrooms and as unemployment rises, perhaps a more ‘American’ definition of local is called for.
During this past recession, America has lost over 7 million jobs and countless more are currently underemployed. Within that loss are almost 2 million manufacturing jobs; many of which will NEVER come back. Economists refer to this adjustment as the forces of Globalization. There needs to be a new economic force; one that is more sensitive to our neighbors, our environment and our nation. We think ‘locally/Americanly’ before we buy. Allow me to clarify the benefits and rationales.
1. Livable Wage
Forty years ago the largest company in America was GM. Now the largest employer is Wal-Mart. In the past we had a company (not that GM is the best business model) that paid excellent wages with benefits including health care and a retirement package. More importantly, these workers lived a middle class lifestyle with aspiration and opportunities for their kids. Sadly, Wal-Mart can’t come close to filling that void. Besides being the source of many of our imports (and therefore, lost jobs), they often pay marginal wages with minimal benefits. Presently, over a million Americans work for Wal-Mart. This is the environment that helped to create the term; ‘working poor.’ By supporting domestic products and services, we can help provide opportunities for those to escape the Wal-Mart trap. In other words, if you support the concept of a livable wage, then support American companies especially manufacturers.
2. Global Warming
The more we import from developing nations, the less we can control from an environmental perspective. If you are concerned about global warming, we must consider where our products are made. China is now the number one contributor to greenhouse gases (surpassing the USA) and will to create greenhouse gases disproportionately faster. Thankfully, America now has a vision to address this problem. By supporting more domestic production, it will be more environmentally friendly and a smaller burden upon our planet.
3. Health Care
America is quite unique in the world in that we generally offer health care via our jobs. As the cost of health care increase by 2-3 times the rate of inflation (now consuming 16% of our GDP), one in seven Americans lack adequate insurance. Equally important, millions of Americans either have marginal health care coverage or will soon lose whatever coverage they have. By supporting American industries especially manufacturers, we are creating better opportunities for workers to secure at least minimum health coverage.
4. Eliminating Poverty
It is grossly ironic that a large percentage of the poor actually work. Years ago, a job was what you ‘did for a living.’ In other words, you could live from your work. Not any more. Poverty tears at the fabric of society making it more precarious and insecure. Living paycheck to paycheck creates a society without roots (and a home), and causes considerable stress and strain on family relationships. It is also statistically true that crime drops when an economy improves. Do your part to contribute to an improving economy.
5. Upward mobility
America has always prided itself on being the ‘land of opportunity’ in which barriers can be overcome with hard work and diligence. Sadly, when struggling to make ends meet, one doesn’t have either the resources or the energies to improve oneself. Countless Americans have historically accomplished the Horatio Alger climb to success. Being a member of the working poor keeps you on the first rung of that economic ladder.
It isn’t easy buying ‘American’. It isn’t always clear what is American or not. We ask that you at least give it some thought. Make sure that an auto truly has American content besides just its assembly (The assembly is only 20-25% of the total value of a car. Ask where the car was designed, engineered, and where most of the parts came from.). This can also be very simply from the beer and wine you order, to the cheese you buy in the store. Remember, that every dollar spent domestically is multiplied geometrically through out our economy. Buy local, think American.
Wednesday, November 25, 2009
We Americans are a patriot bunch; and with good reason. We enjoy an extremely high standard of living, high levels of home ownership, secondary educational opportunities that are the envy of the world, and we appreciate our personal, social and democratic freedoms. It allows Americans to dream that everything is possible.
There is one way, however, in which we fail to express our nationalistic zeal. Economic patriotism. With this I say politely but firmly; are we nuts? We are quick to cheer our Olympic athletes or to proudly display our flag. Yet, we fail to recognize that as we fight a war on terrorism, we don’t mobilize ourselves to support the economic battles at home. Very simply stated, as consumers, we don’t take into consideration the economic impact of our purchases. For 2008, our trade deficit was $816 billion dollars (census.gov/trade balance), or almost 5% of our gross domestic product. For perspective; this current recession, the worst in 70 years, our economy has shrunk by 3.3% or over 1 and a half percent less than our trade deficit.
Economists have often said that the curse of a developed economy is a negative balance of trade. Obviously, we can’t compete with the China’s of the world where labor costs are pennies per hour. Yet, the curse of a developed economy is not universal in terms of trade. For instance, Japan, Germany, and Sweden all enjoy positive trade balances. When compared to our trading partners, sadly, America comes in second in virtually every instance. To our friends to the north in Canada, our deficit for 2008 was $78 billion dollars. With Japan, it’s $74 billion, and even with our former cold war adversary, Russia, our deficit was over $17 billion. To be frank, this is economic suicide.
The source of this quagmire is two fold.
1. American businesses, especially manufactures, have been extremely aggressive to keep labor and product costs down, improving the bottom line, and to make stockholders happy. In doing so, millions of jobs have been lost overseas.
2. Consumers are the second source of this problem. Often, we dictate our decision based solely upon price. It is time that we realize that every product has two prices, the retail price and the social price. The social price is a declining middle class, poor introductory jobs for those with minimal skills or education, and a new economic category called the ‘working poor’.
The only solution is economic patriotism.
1. When possible, ask where a product is made or a service is offered. Retailers in particular, are very sensitive to consumers’ interests.
2. If you can, buy American. I realize that is extremely difficult in this day and age but items are still manufactured domestically. Please remember that next to your home, your second largest purchase is a car. Do consider either an American firm or a foreign one with facilities in the States.
3. It is time to rethink the word ‘imported’. At the present time, it offers connotations of style, taste or even sex appeal. For instance, we drink ‘imported’ beer or drive an ‘import’. From an economic perspective, the word ‘imported’ needs to be seen in more damaging terms.
4. Here in Vermont we love to ‘Buy local’. Why only local support? Can’t ‘local’ be defined as being domestic?
5. Finally, it is not only America who will benefit. Should our economy self-emplode, we will bring the rest of the world with us. This will make our current recession look mild.
Yes, America, it is time to participate in a new form of patriotism; with your wallet. After all, you made your money in America, shouldn’t you spend it on America?!?! Thank you.
There is one way, however, in which we fail to express our nationalistic zeal. Economic patriotism. With this I say politely but firmly; are we nuts? We are quick to cheer our Olympic athletes or to proudly display our flag. Yet, we fail to recognize that as we fight a war on terrorism, we don’t mobilize ourselves to support the economic battles at home. Very simply stated, as consumers, we don’t take into consideration the economic impact of our purchases. For 2008, our trade deficit was $816 billion dollars (census.gov/trade balance), or almost 5% of our gross domestic product. For perspective; this current recession, the worst in 70 years, our economy has shrunk by 3.3% or over 1 and a half percent less than our trade deficit.
Economists have often said that the curse of a developed economy is a negative balance of trade. Obviously, we can’t compete with the China’s of the world where labor costs are pennies per hour. Yet, the curse of a developed economy is not universal in terms of trade. For instance, Japan, Germany, and Sweden all enjoy positive trade balances. When compared to our trading partners, sadly, America comes in second in virtually every instance. To our friends to the north in Canada, our deficit for 2008 was $78 billion dollars. With Japan, it’s $74 billion, and even with our former cold war adversary, Russia, our deficit was over $17 billion. To be frank, this is economic suicide.
The source of this quagmire is two fold.
1. American businesses, especially manufactures, have been extremely aggressive to keep labor and product costs down, improving the bottom line, and to make stockholders happy. In doing so, millions of jobs have been lost overseas.
2. Consumers are the second source of this problem. Often, we dictate our decision based solely upon price. It is time that we realize that every product has two prices, the retail price and the social price. The social price is a declining middle class, poor introductory jobs for those with minimal skills or education, and a new economic category called the ‘working poor’.
The only solution is economic patriotism.
1. When possible, ask where a product is made or a service is offered. Retailers in particular, are very sensitive to consumers’ interests.
2. If you can, buy American. I realize that is extremely difficult in this day and age but items are still manufactured domestically. Please remember that next to your home, your second largest purchase is a car. Do consider either an American firm or a foreign one with facilities in the States.
3. It is time to rethink the word ‘imported’. At the present time, it offers connotations of style, taste or even sex appeal. For instance, we drink ‘imported’ beer or drive an ‘import’. From an economic perspective, the word ‘imported’ needs to be seen in more damaging terms.
4. Here in Vermont we love to ‘Buy local’. Why only local support? Can’t ‘local’ be defined as being domestic?
5. Finally, it is not only America who will benefit. Should our economy self-emplode, we will bring the rest of the world with us. This will make our current recession look mild.
Yes, America, it is time to participate in a new form of patriotism; with your wallet. After all, you made your money in America, shouldn’t you spend it on America?!?! Thank you.
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