There is NO Economic Recovery without Heavy Manufacturing

[FreakinDJ]

Just as the invention of the Lathe in 1750 propelled Brittan to be the Economic Super Power up to WWII

Just as the remaining Heavy Manufacturing infrastructure left over from the build up of WWII propelled the United States to be the World’s Economic Super Power from 1946 to 2001

Heavy Industrial Manufacturing here in the United States coupled with historically high union membership (+35%) created the largest economic expansion the world has ever known.

You kill the car companies and you are surrendering to economic blithe that will last for decades, possibly centuries

[L0oniX]

1. Grant tax free status for all US manufacturing and tax the hell out of any company that outsources..

[groovedaddy]

2. And apply appropriate tariffs! n.t

[L0oniX]

8. Totally agree with that. The WTO & NAFTA need to be put in check.

[FreakinDJ]

4. Tax Free status for "Green Manufacturing Processes" for sure

I work at an oil refinery and there are plans on the drawing table for new processes that are less polluting and more efficient, but once the taxes are calculated the investment lacks returns necessary to proceed.

I would like to see tax incentives applied to all sectors of industry to encourage innovation and investment in cleaner more efficient manufacturing processes

[JVS]

3. "largest economic expansion the world has ever known."

Link?

My high school history teacher taught us that the largest economic expansion the world had ever seen was that of the first two 5 year plans in the USSR.

[FreakinDJ]

6. Google USA economy 1950s

Slam dunk - most prosperous times / largest economic expansion the world has ever known

http://www.planetpapers.com/Assets/4668.php

[JVS]

7. I ask for a link and you give me a paper with no sources from website that kids use to cheat from?

FAIL!

[FreakinDJ]

10. Look it up yourself JVS - I'm not here to do your homework

[JVS]

11. You claimed it was the largest expansion. Prove it.

And learn to do homework better than you seem to be able to by your link choosing skills

[FreakinDJ]

13. Here is a good place for you to start reading

The government began heavy military spending in 1940, and started drafting millions of young men that year; by 1945, 17 million had entered service to their country. But that was not enough to absorb all the unemployed. During the war, the government subsidized wages through cost-plus contracts. Government contractors were paid in full for their costs, plus a certain percentage profit margin. That meant the more wages a person was paid the higher the company profits since the government would cover them plus a percentage.<18> Using these cost-plus contracts in 1941-1943, factories hired hundreds of thousands of unskilled workers and trained them, at government expense. The military's own training programs concentrated on teaching technical skills involving machinery, engines, electronics and radio, preparing soldiers and sailors for the post-war economy.<19>

Structural barriers were lowered during the war, especially informal policies against hiring women, minorities, and workers over 45 or under 18. (See FEPC) Strikes largely ended as unions pushed their members to work harder. Tens of thousands of new factories and shipyards were built, with bus service and nursery care for children's forecast making them more accessible. Wages soared for workers, making it quite expensive to sit at home. The combination of all these factors drove unemployment below 2% in 1943.<20>

http://en.wikipedia.org/wiki/Great_Depression_in_the_United_States

Myth: Tax cuts spur economic growth.

Fact: High tax rates are correlated with economic growth.

The U.S. emerged from World War II as the world's only economic superpower. From 1947 to 1973, it experienced phenomenally high growth; the GDP grew at an average of 3.4 percent a year. The top tax rate remained between 88 and 91 percent until 1964; afterwards, the rate was reduced to 70 percent, still stratospheric by today's standards.

The economy slowed down after 1973, for reasons that economists are still debating. But what is not debatable is that taxes started falling for the rich in 1978 (with a capital gains tax cut). Reagan accelerated these cuts with a vengeance: the top income tax rate was slashed from 70 to 28 percent. Bush and Clinton raised them somewhat, to 39.6 percent today. But that is still roughly half of what it was during the 50s and 60s.

http://www.huppi.com/kangaroo/L-taxgrowth.htm

[LeftyFingerPop]

5. I don't necessarily agree with your entire post, but your thread title is spot on. n/t

[Hubert Flottz]

9. There is no national security without Heavy Manufacturing infrastructure

Why does the GOP want to destroy our country?

[razors edge]

12. But, as bad as the loss of jobs will be,

nothing else has the ability to rein in the empirical intrusion we are now financing through the taxes on those businesses. No politician has the balls to support cutting the defense budget now while the public thinks militarism is just the coolest damned thing since sliced bread.

I bet it won't take long in a bread line to change that kind of thinking.

Either way, the auto industry is toast. Not because of their cars, but because the rest of the middle class can't afford one, or they have no job to drive one to in the first place.

Heavy industry consumes a shit load of energy, and new environmental regulations are going to increase the cost to produce, making our products even less attractive here and abroad.

Give them the money for all I care, it not like we can't or won't just print more. It will at least let the industry go on one more bender before they dry out.

[FreakinDJ]

14. Giving up our Heavy Industries increases potential for foreign manipulation

of our economy

Like it or not we have to be self sufficient

[razors edge]

15. Our economy has been manipulated

by foreign influence for over 500 years, that is not going to change in our lifetimes.

I have been self sufficient since I turned 17, can't say the same for our local, state, and federal governments who can't get along on the 50% of our income they are given.

The reason we had a strong economy after WWII had as much to do with all the gold we took out of the countries we dominated as it did our industrial capabilities, but the treasury stopped minting gold eagles last month, I guess that means fort knox is empty.

[FreakinDJ]

16. China now controls "Raw Materials"

many U.S. manufactures complain Chinese factories can produce parts cheaper then they can buy the raw materials to manufacture the parts.

[razors edge]

17. Absolutely,

and we have a real glut of "One Trip" shipping containers building up in California. I bought a 20 footer for $3,000.00 and the paint was still drying.

There is going to be a tough row to hoe no matter how we go about it. Protectionism is needed, but there will be detractors and retributions.

Cut the defense budget in half and we are still wasting billions. But we could invest that in new tech and jobs in clean energy and mass transit here instead of chip makers in Taiwan.