Trump – Facing The Real Manufacturing Crisis

We are Giving Up Our Vital Industrial Capacity to Potential Enemies!

Since 1988, there has been a steady stream of US manufacturing moving out of the United States.  These include “Industries” rather than just isolated plants within an industry. 

In order to bring back jobs to this economy, Trump will have to rebuild our industrial base with core industries such as Steel, Coal, Oil, Food, and Precious Metals.  Then Trump can start to ramp up the production of goods for consumers and our military.

Steel:  US steel production has fallen 33% since 1967 while China’s steel production has increased by a factor of 57 since 1967!  US production was 115 million metric tons in 1967 and fell to only 88 million metric tons in 2015.  Conversely, China’s production in 1967 was only 14 million metric tons and in 2015 surpassed 803 million metric tons!!!  Today China produces almost 10 times more steel than the US.  China also uses their dominance in this market to drive down world prices and force other nations out of steel production.  What do you make out of steel?  Ships, planes, tanks trucks cars, and a whole host of products that are required for our military as well as for civilian applications.  If we had to ramp up building warships and other equipment needed to fight a war, we would have to import steel from China! 

Great as long as we are not at war with China!

Coal:  22.6% of the world’s coal reserves are in the United States.  Russia and China follow at 14% and 12% respectively.  Coal is vital as a source of fuel and is a key component in the production of steel.  While the EPA has been cracking down on the coal industry for decades, the Obama administration has focused on coal as the major contributor in the US to “Global Warming”! 

As such, even though the US has 23% of the total world coal reserves, we only produced 14% of the world’s output of coal in 2014.  Contrast this to China who produced 49% of the worlds coal in 2014.  In order to remain competitive in the world, the US must have a cheap source of energy for its various industries. 

Coal has typically been used to produce low-cost fuel to generate electricity.  In 2008, coal produced 50% of the US electricity.  Today, coal only generates about 33% of the US electricity.  EPA standards have bankrupted many of the large US coal producers since 2008.  In the event of a war, we will need low-cost energy, produced in the US, to gear up and sustain a war effort.  We will also need low-cost energy to revive our economy and reinvigorate our manufacturing capacity in the US.

Oil:  In 1989, the US produced 7.6 million barrels of crude oil and consumed 17.3 million barrels of crude per day.  We produced 44% of the oil that we consumed.  Our oil consumption spiked in 2015 at 20.8 million barrels per day while our production had fallen to only 5.1 million barrels per day.  In 2013, our consumption continued high at 18.9 million barrels per day while we only produced 7.4 million barrels per day or 44% of the oil that we consumed.  The US has the oil and natural gas reserves to become self-sufficient in oil and natural gas production.  This will have to be a vital part of Trump’s manufacturing revitalization plan in order to provide a constant supply of energy, at stable prices and supply. 

Even more importantly, until the Middle East and other oil-producing regions stabilize, we must not be reliant on nations who may be at odds with our national interests.  Militarily, reliance on foreign oil is dangerous and the US should do everything possible to eliminate this dependence.  Obama/Clinton have done everything they could to kill domestic production while destabilizing the Middle East and a thus a major portion of the world’s oil supply.  Geologic exploration in the US in the past decade has uncovered oil reserves that would make the US reserves the highest in the world.  The left, Obama/Hillary would have you believe that we only have 2% of the world reserves and that we “have to” move to “renewable” energy. 

The Oil Scarcity Myth

Trump should create a North American Version of OPEC to Compete Internationally Against OPEC Nations.  Why Should the US be Held Hostage by Middle Eastern Dictators In Terms of Oil Prices and Oil Supply?

 

The Danger of Not Becoming Manufacturing and Energy Independent

Globalist Taking Down the US:  Progressives and some neocons who are committed to globalism, believe that by reducing US manufacturing capacity, the rest of the world can rise and the world will become more peaceful and the international jealousy against the US will subside.  REALLY!!  They sell this dribble by stating that US consumers will be able to benefit from lower prices as it is cheaper to make a shirt in China and ship it back to the US than it is to make that same shirt in the US in the first place.  What they don’t tell you is that they, Progressives, abetted by some neocon Republicans, have enacted labor, EPA, immigration and other regulations aimed at making US manufacturers unable to compete against countries like China!  Trump uses Carrier Air Conditioning as an example of a company moving to Mexico in order to increase their profits.  Carrier is only one of hundreds of US companies who have either moved production or ceased to exist.  GE no longer produces light bulbs in the US!

Reduction of Middle Class Purchasing Power:  The fallacy of the Progressive argument is that the US working middle class, as they lose their jobs, will be unable to afford even the cheaper shirt from China!  Oh wait!  The government will pay the middle class not to work!  Right now we have 95,000,000 people, 35% of the total US workforce, who have left the workforce and are no longer looking for jobs!  Those without jobs cannot consume at the same levels as those who are gainfully employed and this will stagnate our GDP as we are now experiencing!

Weakening of Our Military:  The Progressive Globalist see the weakening of the US military as a good thing.  They panicked when the Soviet Union fell apart leaving the US as the dominant world power.  They see a “JUST” US Military as one who is checked by a powerful enemy As such, they have allowed key US industries, such as oil, steel, and coal to erode and become uncompetitive with our global competitors.  They have allowed military troop, ship and airplane levels to fall below Pre-WWII levels leaving the US vulnerable and weak.

Trump Will Need to Rebuild the Base US industries While he Renegotiates Global Trade Deals. 

The Rebuilding of the US Industries Will Also Allow The US to Strengthen Our military and Its Capabilities. 

The Rebuilding of Our Infrastructure Will Require Considerable Expenditures and May Drive our National Debt Higher for a Period of Time as We Experienced During the Reagan Administration. 

But, Increased US Production and Job Participation Will Drive Up Tax Revenues, Reduce Welfare Expenditures, and Allow the US to Begin to Pay Down our National Debt. 

Trump is Facing a Monumental Task to Rebuild US Manufacturing and its Employment Base. 

 

RD Pierini

@RDPerini

 

 

Hat Tips

http://abcnews.go.com/Business/american-oil-find-holds-oil-opec/story?id=17536852

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