If an average American ponders over the predicaments America is currently facing, I assure you he will break out in a cold sweat. Well, not only Americans but citizens of any country -- developed or developing, think about astronomical microeconomic and macroeconomic issues that a respective country should look out for.
Ro Khanna, the author of Entrepreneurial Nations: Why Manufacturing Is Still Key To America's Future believes that many macroeconomic issues can be resolved if we emphasize more on manufacturing sector than the tertiary sector.
Here are some listed wonders of manufacturing that can relieve the macroeconomic problems of the nation. Read on.
The power of the manufacturing sector has been underestimated since years. The boom of the service sector has been praised for a way too long, which is believed to be ephemeral. There lie a number of factors which proves why it shouldn't be underestimated, which I will gradually unveil. American manufacturing has been in declivity, which of course, led to the steady downfall in the percentage of GDP in the country.
"Manufacturing is no longer as significant a share of our economy as it once was, declining from nearly 28 percent of our GDP in the late 1940s after World War II to about 11 percent. We now devote less of our GDP to manufacturing than every other industrial nation except France."
– Ro Khanna
During 2012 Presidential election campaign, 'jobs, jobs, jobs' was one abiding rallying cry from both the candidates. With the inclination of unemployment in the US wavering around 8%, the gist was how to put people back to work. Still, the rate of unemployment hasn't been zeroed. Employment has a great opportunity for employment in its store.
The issue of unemployment can be eradicated if we embrace the concept of manufacturing with open arms.
Khanna believes that systematic entangling with the branches of manufacturing can bear America salutary fruits. The balance of trade can be effectively achieved, if exports are prioritized at a greater rate than imports.
Nurturing the manufacturing base of the nation is the fundamental part of insulating our national security. As, I have mentioned in one of my stories, "A strong military with avant-garde technology can only be possessed with a strong industrial base".
Khanna believes that America is neck and neck competition with manufacturing in China. He stated:
"We make 20% of the world's goods with about 10% of our economy. And China makes about 20% of the world's goods with 40% of its economy. So, we are neck-and-neck as a manufacturer, and it is the sixth time productivity advantage that we enjoy over China when it comes to manufacturing and we have a productivity advantage over the countries like Japan and Germany, countries which are thought of as manufacturing leaders. So, I want -- wonder what gives us this productivity advantage, what gives American manufacturers this ability to compete in? And I wanted to go and talk to real manufacturers, because one of the things when you are in Washington and in these bureaucracies you have a lot of people pontificating about the state of American manufacturing and what we need to without actually engaging and talking to the manufacturers, and particularly not talking to the small and medium-sized manufacturers. The large manufacturers, the CEOs are often represented on the policy think tanks, but the reality is that almost half of our manufacturing jobs are with small and medium-sized businesses. So, I decided that I wanted to talk to some of these small and medium-sized businesses and figure out what it was the was giving them a comparative advantage."
-- Ro Khanna, at a book discussion at Politics and Prose Bookstore at Washington D.C.
"America's problem is not that it does not work like China. America's problem is that it no longer works like America. And I think what he means by that is we don't need to copy a system of government in China or Brazil that has the excess of state intervention. But we do need to remember what policies helped make us an industrial power, and those policies hopefully can be adopted on a bipartisan basis like they were until our most recent history and most recent turn to what I would say is free-market absolutist. I think there is a practical middle ground."
-- Ro Khanna
Rohit "Ro" Khanna is an American teacher, lawyer, and politician. He served as the Deputy Assistant Secretary of the United States Department of Commerce under President Barack Obama. Khanna was a student at the University of Chicago, Yale Law School. Khanna is a member of the Democratic Party and is currently running for the United States House of Representatives in California's 17th Congressional District.