Ten Steps for Job Creation
balanced trade. Three years ago, the imbalance reached almost one
trillion dollars per year. The latest numbers show the imbalance is
getting worse again, now at $600 billion per year.
Every one billion
“deficit dollars” represent 20,000 “deficit jobs.” These are jobs
lost to outsourcing, to other nations. The economy is paying close
attention. Recently, the trade deficit was adjusted to show an even
greater imbalance. The market took a dramatic downturn, falling
265.42 points, or 2.49%. The problem with the deficit is free trade.
“Free” is a misnomer. For the United States, our exports are free
and open. From too many of our trading partners, imports to us are
corrupt and closed.
Free trade has done
what it was supposed to do. Starting in 1945, the United States
embarked on globalization. With
Pax Americana, the job was done. Since 1990,
substantial changes have been necessary. Trade kept expanding but so
did the deficit carried by the United States. As the deficit
worsened, the time arrived to change to open trade. The world’s
nations needed to open up. They did not. The deficit worsened. The
The impact of
so-called free trade and its huge imbalances has been in business
and jobs. After two years of grants and incentives, the economy is
dead, there are no jobs, unemployment is over 9% and malaise has
tried and failed. The time has arrived to take new steps. Of a
variety of available new steps, centered on reducing deficits,
retrenching government, and encouraging free enterprises to create
jobs, improving the trade deficit is easiest. There are ten steps
government needs to take to bring more jobs to the U.S.:
Buy American products: The heart of the issue is to promote American business, not overseas
companies. Government purchases should be from American business.
America for Americans.
Adopt tax adjustments: Pofits earned and banked overseas should be taxed. Eliminate the
overseas tax havens. Reduce the incentives to stay outsourced.
Adopt tax incentives. Provide tax breaks for keeping business here and for bringing business
back. Keep American money here and bring what is overseas back.
Promote disclosure for open trade:
Disclosure is the first big step to globalized open trade. Nations
on the many corruption lists have to open their government policies
and procedures. We need to know where the bribes are and where they
Open trade requires parity: America is open, disclosing the terms for global trade. Other nations
have to reciprocate by adopting similar terms. If not, America
should impose similar restrictions.
Open trade requires a level playing field:
If other nations refuse to remove restrictions on American exports,
the positive alternative is to reduce the burden on American
companies. We compete on equal terms, and we will win.
Keep American money here: Do not support overseas businesses with loans or guarantees. This
restriction would apply to nations failing to disclose the benefits
to their companies.
Reduce foreign aid: The United States is no longer the only economic power on the globe.
Several other nations or common markets have to provide what we
invest to support trade. If not, we cut back or eliminate the
Restrict grants to open nations: Money
for medical or other public services should be provided only to
nations who open up. If we are able to compete on parity with their
businesses, additional progress will result.
Promote American free enterprise: This
is perhaps the most important and the most ignored. On request, we tell Washington what should be done. Key
examples are reducing corporate taxes and expensing capital
improvements. Washington ignores the advice. There are many
additional steps to promote the private sector.
For the leaders in
our capital, these ten steps are ignored. We tried to obtain
legislation for adjust tax incentives. The bills were not
introduced. We recommended to the Deficit Commission that burdens
on free enterprise be adjusted to encourage business. One solution
solves two problems – the budget and the trade deficits. There has
been no reaction.
problems with solutions. There have been no results for two years
now. We need to open up our free trade. Washington promotes exports
but not imports. The trade imbalance worsens. Jobs continue to
disappear. The real tragedy is with the unemployed and those who
dropped out of the search. The greatest of personal and family
A “bonus” step has
to be outside Washington, away from the national beltway. The grass
roots movement to buy USA has been around ever since textile mills
started outsourcing in the 1950s. America’s manufacturing base fell
from 34% of the economy to only 13%. The total trade deficit since
1980 is $6.2 trillion.
Americans see this
real world of loss. Economic reports are not needed. The nation took
action. Americans determined to support Americans. The best way is
to learn how to buy American products. There are four main markets
– local, statewide, national and Internet. Trade policy is
government policy. Buy American by Americans is an individual’s
free choice. Direct your purchases to American companies and
American products. Polls show 99% of Americans prefers buying from
the power to do the job. Many nations promote buying their products.
Even China has Buy China. We have every reason to reciprocate.
Most important, by
getting the American economy going, we will also help the global
economy. The United States is the world’s largest consumer economy.
We spend more than any other nation. When we are back up, the world
moves up with us.
The basic solution
for Washington and for individual Americans is Go America First.
McClellan has broad experience in business, the courts and politics,
notably as a personal attorney to President Lyndon Baines Johnson.
He is the author of Made in the USA: Corporate Greed, Tax Laws and
the Exportation of America's Future.
[Contact the author for permission to republish or reuse this article.]