Wednesday, January 25, 2012


Last night in his State of the Union Speech, President Obama said, 

“Tonight, I want to speak about how we move forward, and lay out a blueprint for an economy that’s built to last – an economy built on American manufacturing, American energy, skills for American workers, and a renewal of American values.”

I won't give my opinion on whether the federal government has any part to play in this because I believe, more importantly, we individuals have the power to bring manufacturing jobs back to the United States. 

The main reason that America loses jobs to overseas factories is because the big-box stores demand lowest prices at any cost.

In theory, this sounds like they have our best interests at heart.  We consumers do not want to pay more than we have to.  But, what is the consequence of this mission of lowest price at all cost?  The consequence is that “all cost” is American jobs.

Manufacturers cannot meet the low-cost demand of big-box stores, make a profit AND pay American wages.  One manufacturer said in the book, The Wal-Mart Effect, by Charles Fishman that he moved his operation to Mexico to save on labor costs; but even that was too expensive.  He ended up closing both American and Mexican factories and moving his operation to Asia so that he could pay less to his employees.  Who does this hurt?  Everyone!  Americans, then Mexicans and lastly Asians who are the just the latest indentured servants to the Industrial Revolution.

We – yes you and me – can bring back manufacturing jobs to America by NOT buying the least expensive product just because it is the cheapest.  Another person quoted in the book said, “Every time you see that happy face in the Wal-Mart commercials slashing prices, another person just got punched in the stomach.”  If  you knew that you were reviving the American economy and helping your fellow man and woman make a decent wage, would it make sense to you to buy for quality instead of cheapest cost?

Yes, it makes common sense.

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