"So how do we encourage more domestic manufacturing? First, the basics. To manufacture and sell a product, two things must happen:
1. You must have a product that is as good as, or better than, the competitor's.
2. You must be price competitive.
The solution is simple: reduce our costs. How do we do that?
1. Reduce fuel, real estate, and income taxes on mines, mining equipment manufacturers, metal mills, and foundries.
2. Reduce fuel, real estate, and income taxes on trucking companies, manufacturing companies, and export companies.
I am not just speaking of exporting companies, but every industry -- what we don't import is just as important as what we export.
Is this unrealistic? I submit that this is a real stimulus. It will help everyone in the country. It is the only logic.
We have given up on manufacturing here in the U.S., supposedly because "we can't compete" with their low labor costs. I say "bull"!
The U.S. was built on manufacturing, and the Chinese didn't take it away -- our government policies gave it to them. It is our own government's stupidity that is the cause for so many manufacturers moving their manufacturing operations to a "friendlier environment."
Logic says that a business that exports should be encouraged, and a business that imports should be discouraged. We have done quite the opposite, and it is time to reverse this stupidity.
So the final question -- indeed the only question -- is politics. Is either party likely to actually act on this simple logic? I submit that both parties need to rethink their policies. The above suggestions are good for both small and large businesses and good for union and non-union labor. There are no downsides to this, and it can be done incrementally to minimize the effect on government revenue.
I guess it all comes down to the media. I address this to those in the media who are against U.S. manufacturing:
Can you accept my points, as stated above, or must you see this as a business vs. society or as a class warfare issue -- refusing to accept that anything that helps American companies is wrong just because it helps American companies? Do you feel manufacturing in the U.S. is wrong, but that it is OK elsewhere? Do you think that a factory in China will be more efficient and responsible in its use of natural resources? Isn't it better to manufacture in the U.S. than to import? Have you ever actually considered this subject objectively?"