The first step in any jobs plan has to be stabilizing the impact of cost for companies with a strong focus on manufacturing.
There are two direct areas we must focus on to achieve that Jobs stability. Are one is domestic stability which comes from addressing issues such as oil prices and taxes that may hamper a small business owner and prevent them from competing with overseas competitors. This area also controls the need to outsource manufacturing, telemarketing, and other jobs and services. The other area is the tariff system which ensures fair trade both domestically and globally.
Another place government can help, is in promotion of the Buy American message through partnerships with groups such as the U.S. Chamber of Commerce and The Ad Council P.S.A. Network.
Domestic jobs and economic stability has been threatened with issues ranging from the high cost of Obamacare, to over regulation from the EPA, and an attack mentality Congress has forced on the SEC as they continue to search for scapegoats and play blame games to give the people a tangible enemy. Although the single most controllable and yet out of control aspect is the cost of Oil and Gas which we will explore in detail in the energy policy but must touch on here.
Green energy is a great mission, but has a bad salesman at this point. The Democratic party has manufactured a false sense of urgency in the markets and then blamed speculators and Oil Executives for a fake shortage they have caused. They have caused it by subsidizing thousands of pump ready wells and paying the landowners thousands of dollars per well to not pump. By refusing to issue the necessary number of contracts to build new refinery operations, and by blocking vital drilling and exploration contracts. Add in the Obama blockade of the Keystone XL Pipeline and you now have a system that forces oil companies to pay through the nose for foreign oil. Obama and the Democrat controlled Senate refuse to open more domestic drilling. Which by the way, creates thousands of high paying jobs and provides industry specific on the job training.
Our foreign policy when it comes to trade has also been too focused on exports and has left a gaping hole on imports.
Our manufacturing trades in the U.S. Today are drying up. Foreign companies are allowed to import goods to the U.S. With little to no tariff and drastically undercut the cost of American Made. Instead of addressing the failings of these trade contracts the Democrats focus instead on blaming companies for outsourcing for jobs in order to remain competitive.
Tariff is an issue that is two fold. When components and supplies are higher cost domestically, and lower on the global market a company will have to make some tough choices to control cost. Labor is the one variable that is easiest to cut because new employees earn less than tenured, technology can handle some of the workload, or it too can be outsourced for savings. To make things worse the same Tariff issues apply to finished goods such as Automobiles and T.V.s allowing them to be sold at lower prices for higher profits. American companies are posting 2-9% profit margins while foreign companies are getting fat by flooding the market with goods we can not compete with in terms of price.
Conservative policy on trade is to shift tax burden from domestic suppliers to foreign imports, equalize cost and end prices, and focus on marketing U.S. Made goods on the global markets. As cost increase on imports and the pricing levels between American Made and foreign goods balance it will become easier to afford to be a Buy American household or business owner. We think of it as America 1st and it’s how things should be. Read more on this subject in Conservative American Jobs Plan Part Two.