Assignment 16- Gus Carlson

A Diverse Economy For a Diverse America

Gus Carlson

          Good afternoon ladies and gentlemen:

            Imagine that you are a farmer, with property near other farmers, which you use to grow corn. You are one of the largest corn producers in the area, so you sell some corn to other nearby farmers and buy crops from them, such as potatoes and rice. Through this system of exchange, every farmer gets what they need, and everybody is happy. Even though you don't end up with as much corn as you worked hard to grow in the first place, you have other sources of food and live a content life.

            Now imagine that your farm is America, and your crops are jobs.

            A couple of weeks ago, new reports surfaced regarding the successes of President-elect Donald Trump: he had successfully saved 1,000 manufacturing jobs from being outsourced out of a Carrier plant in Indiana. 1,000 families that got to keep their source of income. To many voters, especially his supporters, the deal was an important sign that Trump would stick to his campaign promises. During his campaign, Trump pledged to Americans that he would revive previous manufacturing centers and bring back many international jobs. If he could save 1,000 jobs like this before he was even in the White House, what can he accomplish in 4 years?

            The truth, however, is that this achievement is a very small one, and may not be good for America at all. The United States of America is a massive nation of over 300 million people. We have a civilian labor force of about 160 million and an unemployment rate of 4.6%. Our nation has an extensive labor system, and focusing on losing a mere 1,000 jobs is a distraction that could prove dangerous. Donald Trump, as future President and leader of America, and his administration, should focus on larger, more macroeconomic issues, especially improving job growth in other areas and being wary of over-indulging in allowances for corporations.

            The jobs saved in the Carrier deal are not, in the bigger picture of the national economy, significant. Through focusing so heavily on such a minor issue, Trump and his administration set a dangerous precedent. He has shown that he is willing to provide incentives to companies considering outsourcing in order to keep them in the States. What now prevents these companies from threatening to leave to get benefits? Giving tons of tax breaks to any company that wants one is a habit that will definitely hurt the government's fiscal intake. We don't need to overwork ourselves retaining all of our jobs, the loss of some is an acceptable reality, as the farmer can accept losing some of his corn.

            The American economy as a whole loses millions of jobs per year, but this is acceptable, because we also create millions of jobs each year, leading to net job gain. The economy gained 178,000 jobs in November 2016 according to the Bureau of Labor, demonstrating that the American economy is not as dead as some would have us believe. As the farmer, we are gaining more potatoes and rice than we are losing corn, so we should not be worried.

            Even if we work hard trying to save every single manufacturing job we are able to, America will lose jobs in this sector. Globalization is driving manufacturing jobs out of the country. It remains a simple fact that labor which companies find in Mexico and China is cheaper than in America. The jobs that Trump saved from Carrier pay about $30 an hour, including benefits. Those same jobs in Mexico usually cost companies less than $3 an hour. American laws protecting workers, which are a positive thing for citizens, cause foreign labor markets to be much more appealing to large corporations looking to drive costs down. Automation of manufacturing has also improved significantly in recent decades. Major manufacturing companies can produce almost all of their goods using machines, with the only human assistance being maintenance and other such tasks. This technological advancement is cheaper for producing goods, but also removes manufacturing jobs. Overall American manufacturing output is higher than ever, but this is without as many workers. As a nation, America should focus on improving job production in other sectors, where technology has yet to overtake humans as strongly, such as service jobs. We should be diverse as the farmer, buying crops that are retainable, not struggling to hold onto our old crops.

            In order to promote diversity and freshness in the American economy, it is essential that we take a macroeconomic look at the world and national economies. Overall, an economy is healthy if it is in constant motion, with people gaining and losing jobs, companies going out of business and being started, and economic mobility giving opportunities to those of all classes to move up the ladder. This concept is known as economic dynamism, and maintaining it provides a baseline for growth and innovation in an economy. Dynamism is on the fall in America, and this issue's fixing should be a priority for President Trump. If Trump continues to offer incentives and benefits to large established companies, this drives down dynamism. Large companies are always looking to eliminate any and all competition, and giving those companies a leg up kills the competition which drives a free market. As a farmer, you need to always be growing and buying new crops, as those that are old will grow rotten. This principle also applies to the economy, so we should avoid handouts to large companies.

            Donald Trump has a great opportunity as the next President of the United States, and we have a great opportunity as citizens. The upcoming years have the possibility of being a great success for America. Unprecedented growth is possible, and as consumers we have the power to be the driving force behind this growth. We must be cautious as a nation, however, not to get too caught up in "never losing." We must accept that we will lose some jobs, but we have the power to create countless more.  We must accept that manufacturing jobs are not the jobs of the future, and we should look to other sectors. We must accept that corporations and monopolies hurt our economy, and we must promote competition and dynamism by not helping these companies out. We should strive to be like the peaceful farmer community, accepting our losses and looking forward to our gains, working together with the rest of the world to create a diverse international economy that works and promotes happiness for all Americans.

Thank You

Works Cited

Casselman, Ben. "The Economic Challenges Facing The Next President." FiveThirtyEight. N.p., 07 Nov. 2016. Web. 8 Dec. 2016.

Casselman, Ben. "Why Trump's Carrier Deal Isn't The Way To Save U.S. Jobs." FiveThirtyEight. N.p., 05 Dec. 2016. Web. 5 Dec. 2016.

I Lost My Job. Dir. Tom Hallatt. By Dale Hallatt. New Future Media, 2012. Top Documentary Films. Web. 9 Dec. 2016.

Isidore, Chris. "Carrier to Ultimately Cut Some of Jobs Trump Saved." CNNMoney. Cable News Network, 9 Dec. 2016. Web. 9 Dec. 2016.

Mankiw, N. Gregory. "Want to Rev Up the Economy? Don’t Worry About the Trade Deficit." The New York Times. The New York Times, 02 Dec. 2016. Web. 8 Dec. 2016.

Waldman, Paul. "Beware of Donald Trump’s Con on Manufacturing Jobs." The Washington Post. WP Company, 29 Nov. 2016. Web. 10 Dec. 2016.