More on Manufacturing

Here is a good article from Businessweek about the problems in the manufacturing sector, and the difficulty in finding a solution. There is also this article about how the problem is affecting Bush's re-election attempts. It is really a tough situation with no good answers. An international minimum wage (Gephardt's idea) would never make it through the WTO. Targeted tax cuts for companies keeping jobs in the U.S. (Lieberman's idea) may work for a time, but a few years down the road people will forget why they were enacted, and bitch about "corporate welfare." Tariffs on foreign imports would violate WTO rules and make American manufacturing even less competitive in the long term. My guess, though, it that whatever candidate espouses protectionism will get the manufacturing vote in the next election.

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