Manufacturing Crisis in America
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This paper supports the statement made by Business and Industry Council claiming that United States faces a manufacturing emergency. In addition, Business and Industry Council argue that unless something is done, America will become a second class manufacturing power threatening its own economic progress. According to research on global imbalances, excessive imports may plunge a country into debts thus affecting its overall economic growth. The main reason that has caused America face manufacturing emergency is that it is expensive for domestic companies to produce manufacturing goods. The regulatory and taxation system in America does not favor young businesses. Companies have thus opted to outsource labor to countries such as India and China where labor supply is cheap and readily available. Employment in United States has declined significantly from 1970s since manufacturing companies do not employ American citizens. Emergency in America’s manufacturing sector has caused it to rely on imports from low wage countries such as Mexico and China. However, overreliances on these imports threaten the national security in America. In addition, the flexibility of America’s foreign relations will be at risk since it will be over reliant on imports from other countries. Business and Industry Council is a reliable source because it represents the interests of American producers. In addition, its main aim is to improve America’s domestic economy making its information on effects of America’s imports reliable.