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October 21, 2011 By Nashville Wraps 2 Comments

A Yuan for American Jobs

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Regardless of our politics, we all have a yen for more American jobs (I couldn’t resist the pun). That is really what the bi-partisan China Currency Bill could help accomplish. For those of you who have been reading my posts you know that they promote more American products and manufacturing, but we have lots of hurdles to cross and so far without much, if any, help from Washington.

The crux of the American job market over the past dozen years or more is we have exported the majority of our manufacturing to China. Along with that, the millions of manufacturing jobs and small businesses that support the larger plants in towns everywhere have also gone. On a positive note, we are beginning to see some American-owned specialty manufacturing being brought back into this country due to inflation, rising labor costs and quality-control issues in China. But that is only a trickle, and we need a stream. Washington has the valve to open up that stream – if they will turn it open.

In an Op-Ed from The Baltimore Sun (October 11,2011), Peter Morici hit the nail on the head. The issue is that Beijing has kept the Chinese Yuan undervalued by about 40% so that the goods and services they provide are much cheaper than what can be provided here in the US. It is not that Americans have become lazy, forgotten how to make things, don’t want manufacturing jobs or can’t compete; that is rubbish. It’s rather that Americans are being denied their fair opportunity to compete. The Chinese government subsidizes many of their exports and blocks imports that would put competitive pressure on their own stuff. It’s a great game plan for them, but look what it is doing to us! Seems like fair is fair. Take the recent Solyndra debacle for instance…one chief reason that it failed (other than poor management and reckless capital) was the Chinese started making cheap (subsidized) solar panels.

The Chinese currency bill would go a long way to equalize markets, at least in China. While many companies will just seek the lowest common denominator and divert manufacturing to Vietnam, Indonesia, Honduras and other places, China still has by far the largest portion of exported U.S. jobs. So the Chinese currency bill could be a catalyst to restart American manufacturing.

Of course we the people can bring about a market shift on our own by catering to growing markets with US goods. It is a trend which is building momentum, and like the “green” movement, is grass roots. I believe the best solution will come from the free enterprise market system, and the increased demand for American products will fuel the need for more American jobs and is already doing so… all with no help from Washington! However, a shot in the arm that gets us closer to the cause for job loss would have to come from Washington.

Nashville Wraps will continue to strike a balance between quality goods made in America and competitive prices. We do this by supporting American (and Chinese) companies with volume. We too import goods, but only when we exhaust all possibilities for domestics, and so far that has proven to be good policy.

Nashville Wraps

Why American Made is Hard to Find

Nashville Wraps

Nashville Wraps is the leader in eco-friendly gift & gourmet packaging. Our focus since 1976 has been beautiful packaging, competitive prices, fast shipping and taking care of our customers. We listen. We care about your success. Most of all, we want to make your business look good.

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Filed Under: Economy, Robby's Notes, trends, USA Tagged With: made in America, retail economy

Reader Interactions

Comments

  1. Sue says

    October 22, 2011 at 9:11 am

    I am opening a Gift Basket business on Nov1 and made the decision early on to focus on local and regionally made products. I should have kept a log of the hours I spent sourcing out products! But I am very proud and excited to offer my unique gift collections. I am also writing a blog that will emphasize the same message you have here. The products in my baskets are generally more expensive, so my baskets are more than those found at WalMart & the malls. I am fortunate to live in a region that is very active and supportive around the concept of supporting local and American made. But in the end, Americans will have to decide if they are willing to pay more to support their communities and their country’s economies. We have an addiction to cheapness! Thanks so much for speaking out on this important issue.

    Reply
  2. Marie Lisewski says

    October 22, 2011 at 7:24 am

    Thanks Robby. We are a small gift basket service located in Esthampton, Massachusetts. The Williston-Knight Button Co was established in 1847 and during the industrial revolution the town experienced rapid growth with mills and factories supporting the textile industry.
    One by one the huge factories started closing down. Our studio is located in one of those old buildings. It’s last manufacturing tenant closed in the late 1990’s. The building sits on a street lined with huge building that at one time produced goods for sale and provided jobs for thousands of people. Today only one of the buildings on the street is still being used to manufacture goods. It is still producing goods for the textile industry. Another building has become a warehousing facility and a couple other buildings are multi use facilities housing small business and professional offices.
    We try to use as many American made products as possible in our gift baskets and join with many other business in our community supporting the “buy local” philosophy. Buying local keeps our money in our community and helps keep shipping costs down.
    Thanks for spreading the word and reminding us that we have control over our spending habits and our votes. Working together we can bring jobs back to the United States.
    Marie Lisewski
    Owner, Laurel Mountain Basket Co

    Reply

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