Discuss – Baby Boomers, Gen Y and the Issues Usa Face in Regaining Industrial High Ground

Topics: Generation Y, Unemployment, Generation X Pages: 10 (4563 words) Published: January 2, 2013
Discuss – Baby Boomers, Gen Y and the Issues USA Face in Regaining Industrial High Ground The USA has for a long time been at the top of the industrial high ground, with new and innovative companies designing new products all the time. After World War II, America had great hopes that were matched by an unprecedented period of prosperity and improvement in their living standards up to and including the 60’s. (Ron Hira, 2005, p. xiii) But in the last decade the U.S. has declined in its positioning and is declining within the industrial market compared to other countries that have increased their industrial capacity in today’s economy. Recently a new report was released by the Information Technology & Innovation Foundation (ITIF) which presents a strong case that manufacturing throughout the U.S. has declined more during the last decade than it did during the Great Depression of the 1930’s. (Nashhoff, 2012) In February 2011 the U.S. federal government did a report and found that the U.S. trade deficit had risen by 33% in 2010 to nearly half a trillion dollars. Most of the gap was caused from an imbalance in trade with China, which according to the report shipped out $365 billion in goods to America but in return only bought $92 billion in U.S. goods. This then resulted in the USA suffering a large deficit of $273 billion in bilateral trade which is the exclusive trade and exchange of goods between two countries. Over the last ten years, the U.S. has been under threat from China as it has mounted the biggest challenge to the U.S. manufacturing sector ever seen, threatening producers of steel, chemicals, glass, paper, drugs and any number of other items with prices they cannot match. The same report also mentioned how serious the situation is becoming for the U.S. because not coincidentally, the U.S. has lost an average of 50,000 manufacturing jobs every month during the same period. (Thompson, 2011) The main issue the U.S. faces is the fact the shift has started and gone, and they need to work out a solution to help solve the issue. There are many factors which have contributed to America’s decline, from government policies to companies/organisations outsourcing their products to countries where manufacturing costs are lower than that of the US. And even the crisis in the Eurozone has had a negative impact on manufacturing in countries like America; a report from The Institute for Supply Management in August 2012 showed that American manufacturing continued to slow in July by contracting for the second month in a row, it showed that its monthly index rose to 49.8% in July from a 49.7% reading in June, but any reading taken below 50% indicates a contraction within the sector. This report was considered worrying for the US as a whole because the results from June and July have ended a 34 month growth streak, as manufacturing had been one of the few segments within the U.S economy that had shown consistent growth during the recovery. Poor manufacturing results from both Asia and Europe showed that the effects and issues within Europe relating to the Eurozone crisis have hit manufacturing on a global scale. Government policies have also caused issues for the US because Congress have created problems in not informing and passing on critical information to organisations; many businesses still don't know what their tax rates will be in 2013, or where exactly the government plans to make its $110 billion in cuts when the new year triggers the so called sequester. Businesses that often rely on government contracts simply don't know how to plan for the year ahead. "We've stopped investing and hiring because we don't know what programs are going to get cut," said Chad Moutray, chief economist for the National Association of Manufacturers. (Censky, 2012) America needs to make a change to the way they organise themselves as the global economy is constantly changing with markets crashing, the recession and the worsening of societal...
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