Since nobody asked me lately, I decided to throw my own two cents in as to what might help jumpstart the American economy. One of the things that I encourage people to do is start their own business, especially their own manufacturing business, if they have the experience and desire.
Since America has become a service based economy for the most part, we’ve lost a lot of the nuts and bolts aspects of keeping an economy going. Service economies are great except America’s rates are higher than some other countries though that is rapidly changing. Businesses that can make products here in the United States inexpensively, free of toxics, and can employee people in this country would tend to help the American economy a lot more than giving everybody three hundred dollars. With banks flush with cash, it would be nice to see more business loans being made to get companies going and employing people.
The upshot of people getting jobs is that they will spend money. Chances are they will spend it locally near where they work. It is unusual in this country to have people send most of what they are making outside of the country though that does happen. Once people feel comfortable spending again, as well as saving, they will have other companies expanding (though slowly) to make more money.
WIth the closures of a lot of mass merchandise stores like Mervyn’s here in California (and I am sure there are other chains elsewhere in the United States that are shutting down) something needs to be done to get people employed. The backwash from people being out of work means that they either move out of the region or get desperate.
Manufacturing doesn’t have to be equated with giant steel mills with tall pipes belching smoke. There are all kinds of manufacturing plants and here in Southern California we have a lot of them. They tend to be small to mid size and there is always room for more.
The quality of work that is done overseas varies. WIth the recent scares of products coming from China, American made products, if they can be made somewhat competitively would sell well. If you can manufacture something so that you can get the “green” label for environmentally safe – you pretty much will have the world, or at least a lot of people, breaking down your door to get to your product.
If you live in California or any other state, talk with your local Better Business Bureau and tax authorities and see if they offer any incentives for starting up manufacturing in any parts of the city that they want to rebuild or empower. Sometimes you can get economic benefits from tax breaks or discounts on leases. You won’t know unless you ask.
My late brother-in-law use to make shutters and had a warehouse in Chatsworth. He employed three people and was backlogged with his custom window shutters.
If you are a skilled craftsman or have anything that can be made onshore, please talk to local banks and get your Congressman involved. Anything that creates jobs is generally a good thing. It can also be profitable.
While I am ranting, please write your government representatives and ask them to pass legislation to make it easier to start up jobs and not harder.
Kim Greenblatt
Here in the profitable blog, we think that America needs manufacturing.