Tuesday, June 05, 2012

The Necessity of Manufacturing

I could not have said it better myself. Peter Schiff explains the necessity of manufacturing. First day at school, pay attention kids (5:13):

"If we ever are going to actually have a real recovery and not a stimulus-induced temporary high, it is going to have to be led by manufacturing. 
The problem is that manufacturing has declined so much because of government policy. We now have more people who work for government than who work in manufacturing. 
The reason we have been able to get away with this is because the world has taken the money we print in exchange for the stuff they produce. 
We run enormous trade deficits because the dollar is the reserve currency. But we have abused that privilige and we are going to lose it. 
When the dollar plunges, Americans are only going to be able to consume what we produce. Or if we want to import something we are going to have to export something of equal value, not just money. 
And then we are going to have to have a lot of manufacturing."

Basic knowledge really. It needs to be repeated with persistence though, as the West keeps adhering to ignorance. For a good enough future it is time to stop wishing and start producing.