Best of the Week
Most Popular
1. Crude Oil and Water: How Climate Change is Threatening our Two Most Precious Commodities - Richard_Mills
2.The Potential $54 Trillion Cost Of The Fed's Planned Interest Rate Increases - Dan_Amerman
3.Best Cash ISA Savings for Rising UK Interest Rates and High Inflation - March 2018 - Nadeem_Walayat
4.Fed Interest Hikes, US Dollar, and Gold - Zeal_LLC
5.What Happens Next after February’s Stock Market Selloff - Troy_Bombardia
6.The 'Beast from the East' UK Extreme Snow Weather - Sheffield Day 2 - N_Walayat
7.Currencies Will Be ‘Flushed Down the Toilet’ Triggering a ‘Mad Rush into Gold’ - MoneyMetals
8.Significant Decline In Stocks On The Cards! -Enda_Glynn
9.Land Rover Discovery Sport Extreme Driving "Beast from the East" Snow Weather Test - N_Walayat
10.SILVER Large Specualtors Net Short Position 15 Year Anniversary - Clive_Maund
Last 7 days
Gold Short-term Pull Back in Progress - 20th Mar 18
Stocks Appear to be Under Pressure - 20th Mar 18
Time To Eliminate Your Wall Street Tax? - 20th Mar 18
The Beast from the East Snow, UK Roads Driving Car Accidents - 20th Mar 18
Can Bitcoin Price Rally Continue After Paypal Fake FUD Attack? - 19th Mar 18
2018 Reversal Dates for Gold, Silver and Gold Stocks - 19th Mar 18
This Tech Breakthrough Could Save The Electric Car Market - 19th Mar 18
Stocks Set to Open Lower, Should You Buy? - 19th Mar 18
The Wealth Machine That Rising Interest Rates Create Conflict With The National Debt - 19th Mar 18
Affiliate Marketing Tips and Network Recommendations - 19th Mar 18
Do Stocks Bull Market Tops Need Breadth Divergences? - 19th Mar 18
Doritos Instant £500 Win! Why Super Market Shelves are Empty - 19th Mar 18
Bonds, Inflation & the Market Amigos - 19th Mar 18
US Housing Real Estate Market and Banking Pressures Are Building - 19th Mar 18
Stock Market Bulls Last Stand? - 18th Mar 18
Putin Flip-Flops Like A Drunken Whore On Bitcoin Cryptocurrency Legalization - 18th Mar 18
How to Legally Manipulate Interest Rates - 18th Mar 18
Return of Stock Market Volatility Amidst Political Chaos and Uncertain Economy - 18th Mar 18
Bitcoin Price Trend Forecast, Paypal FUD Fake Cryptocurrency Warning - 17th Mar 18
Strong Earnings Growth is Bullish for Stocks - 17th Mar 18
The War on the Post Office - 17th Mar 18
GDX Gold Mining Stocks Fundamentals - 16th Mar 18
Nationalism, Not the Russians, got Trump Elected - 16th Mar 18
Has Bitcoin Bought It? - 16th Mar 18
Crude Oil Price – Who Wants the Triangle? - 16th Mar 18
PayPal Cease Trading Crypto Currency Bitcoin Warning Email Sophisticated Fake Scam? - 16th Mar 18
EUR/USD – Something Old, Something New and… Something Blue - 16th Mar 18
DasCoin: A 5-Minute Guide to How It Works - 15th Mar 18
Stock Market Downward Pressure Mounting - 15th Mar 18
The Stock Market Trend is Your Friend ’til the Very End - 15th Mar 18
6 Easy Ways to Get What Women Want, for Less! - 15th Mar 18
This Isn’t Your Grandfather’s (1960s) Inflation Scare - 15th Mar 18
Eye Opening Stock Market Index, Volatility, Charts and Predictions - 15th Mar 18
Gold Cup At Cheltenham – Gold Is For Winners, Not For Gamblers - 15th Mar 18
Upcoming Turnaround in Gold - 14th Mar 18
Will the Stock Market Make Another Correction this Year? - 14th Mar 18
4 Ways To Writing An Interesting Education Research Paper - 14th Mar 18
China Toward Sustainable Economic Growth - 14th Mar 18
Stock Market Direction Is No Longer Important - 14th Mar 18
Trade Tariffs Defeat Globalists and Return Prosperity - 14th Mar 18
Stock Market Crash is Underway and Cannot be Stopped! - 14th Mar 18
Are Energy Sector Stocks Bottoming? - 14th Mar 18
Nasdaq Stocks Soars to New Record High After Strong Job Reports - 14th Mar 18

Market Oracle FREE Newsletter

Urgent Stock Market Message

How Can the U.S. Economy Recover Without Manufacturing Capacity?

Politics / US Economy Feb 25, 2009 - 02:13 PM GMT

By: Submissions

Politics Best Financial Markets Analysis Article"You can't put people to work in American factories that don't exist."

The strength of the federal economic stimulus package is seriously diluted by the fact that many  of the manufactured goods that will be purchased for the attempted recovery must be imported from outside the United States. America simply doesn't make lots of things, anymore. That means many billions of dollars that folks assumed would go towards fueling an American economic comeback, will instead provide work and paychecks to employees in other countries, that still have manufacturing bases. That's fine with the U.S. Chamber of Commerce, which is dominated by large multinational corporations - the same guys that began stripping the United States of manufacturing jobs decades ago.

The U.S. Chamber of Commerce was one of the main lobbyists opposed to provisions that would have mandated that stimulus money go to U.S. companies. The Chamber is a U.S. organization in name only, like its finance capital comrades, the guys that gave the world such a bad case of the dreaded "American Disease," much of the planet is praying that cash-rich China will eventually bail everybody out.

The United States' lack of a manufacturing capacity makes it even less likely that anything resembling a lasting recovery can emerge from President Obama's approach to the economic crisis. The infrastructure projects that are supposed to be central to the recovery scheme are only valued at $150 billion - which is not much of a jolt, especially when much of what will have to be bought is only available in other countries, made by foreign workers. Barack Obama has put a huge emphasis on building a green economy. However, according to the New York Times , most of the sources of solar panels and wind turbines are located in Europe and Asia. There can be no green economy without a mass transit makeover of the United States, but the U.S. hasn't made subway and light rail cars in many years. They'd have to be imported.

"Most of the sources of solar panels and wind turbines are located in Europe and Asia."

Every product that must be imported for the infrastructure project means a watering down of the stimulus impact of the dollars spent. You can't put people to work in American factories that don't exist.

A true national recovery effort would mean re-industrialization, on a grand scale and a green model, through massive direct federal creation of state-owned industries independent of the finance capitalists who murdered American manufacturing and then blew up their own businesses on Wall Street. But this is already nearly impossible, since President Obama is committed to saving the banking class through unlimited infusions of public money, and then allowing these reborn zombies to resume their roles as lords of development. The bankster parasites have neither the capacity nor the intention to build anything other than mountains of debt for the rest of us. Therefore, Obama's partnership with them spells doom for national recovery.

Like Billy Preston said, " Nothin' from noth in' leaves nothin'."The U.S. cannot create the conditions for economic health without rebuilding a manufacturing capacity. And the remnants of Wall Street have nothing to contribute to an economic recovery, but an infinite capacity to steal.

By Glen Ford

For Black Agenda Radio, I'm Glen Ford. On the web, go to .

BAR executive editor Glen Ford can be contacted at

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2018 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


D. Clarke
26 Feb 09, 07:57
US Economic Recovery

I'm glad someone finally said it. You are so right about the essential need for America to be producing SOMETHING besides mountains of debt. What we are left with is selling off our infrastructure: roads, airports, water systems, electrical systems, etc. (most of which is state-owned), our real estate, and the basis of our natural resources: mines, river/dams, ports, forests, etc. All the things that took 400 years to build and which maintain the US as a powerful sovereign, independent country and which should NEVER be sold.

And when all that is sold off to foreign buyers, what's left?

Bill Dollar
27 Feb 09, 07:13
Phony Economy

Without a foundation, a house wont stand. The foundation of any economy is manufacturing. This phony economy WILL fall. BHO is just delaying the inevitable with this bailout as this much debt will be unrecoverable. Have a nice day.

Thomas Golding
02 Mar 09, 00:44
Manufacturing USA

Glade to hear, at last, someone who states the obvious. Guess it is too simple for our politicians to understand. They prefer convoluted service economy theory.



13 Mar 09, 09:06
Inconvenient Fact

The fact is that the US is still the largest manufacturer in the world. Quite a bit larger as it turns out.


Don't believe the media hype!

Jonathan M. Feldman
19 Apr 09, 09:14
Mass Transit Reindustrialization

I agree with this article and invite those interested in a reindustrialization agenda to take a look at my article. It chronicles decline in mass transit manufacturing and how this trend can be reversed.

tim Wilcox
05 May 09, 11:52

There are reasons other than conspiracies and poor-me syndrome that America does not possess a large manufacturing sector. Can you guess it?

daniel k
16 May 10, 15:55
collapse then recovery

No need to worry, guys, there will be a recovery. It's going to require that we collapse first, but the truth is we can't fail in the long run. It's going to take a super collapse for us to realize that we can't do the things we do. We can't screw bolts onto a car for 50 bucks an hr. When we realize this and just accept what we can get then we'll recover. The reason China gets all the work is because their employees will work for what they can get to survive. We have to get back to the basics and quit wanting all of this excess, all of this crap that we've been brain washed into wanting and just want the simplest things like a house and a happy family. not cable television, sports cars, and all of this technology that really is just a distraction from each other. When we finally collapse and everyone goes through a reality check, we will see us come back and become more strong and influential than ever!

17 Aug 10, 13:31
Daniel k

Daniel K I don;t think they should get $50 an hour but how about 20 or 25? All these people from 1950 on got paid well enough to raise a family. The owners of the companies got rich. So why should we work for 8 dollars with no benefits to compete with China?

Shelby Moore
17 Aug 10, 15:02
Manufacturing myth


I suspect intuitively that much of that so called manufacturing in the USA is military spending and its multiplier effect. It is not a sustainable type of manufacturing, rather a subsidy and a symptom of our socialism orgy. You will find companies like Boeing, Northrup, Lockheed, Ratheon, Haliburton, etc...

Owen, we indeed could do well at any wage, even $8, if we would stop stealing from ourselves:

We have to first starve the socialism, which means collapse. Then we can recover with a smaller govt and build back up again (unfortunately probably the end of the nation states and the start of a new world government unless more people stop using debt and interest rates).

As for competing with the 6 billion poor people in the world, you will have to. They have just as much as you do to the world's resources. You were able to steal from them from past decades and keep them beaten down. You don't realize it, but the fiat system enabled this. No it is pay back time. Prepare.

Shelby Moore
17 Aug 10, 15:07
$8 per day

Hope you realize in China (and the other billions of poor in world) that is $8 per day, not per hour. Are you prepared? Got gold and silver yet for the hyper-inflation that will revalue the world system so your wages are equivalent to $8 per day in 2010 dollars? The only question is "are you prepared?". Because no amount of talking and politicing is going to prepare you.

30 Nov 10, 14:58
USA No Longer a Super Power

There is not doubt that

USA is not only no longer a super power but also will enter in many new social and economical problems that will have the same destiny as USSR.

All signs show and confirm this reality.

There are clear signs that new fast growing super powers will take the world economy control fully in hand and USA has no choice unless accepting the break down

American way of life (with all of its high standards can not be financed. not only by US government but also no other system can feed such way of life in the intelligent world of these days that there is no nation to capitalize and there is no area to occupy and steel its resources )

USA is finished

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules