This podcast chiefly discussed the manufacturing in the US has declined sharply in the past eighteen months, and Obama’s administration has tried to revive manufacturing by some economic stimulus package. Louis also mentioned that the manufacturing goods which are consumed domestically are more than manufacturing goods which are made in the US. It means the US has to import these goods for other countries. While these goods have lower price than goods domestically made, it threats the survival of manufacturing. Moreover, the Louis pointed out the key problem which cause sharply decline on domestic manufacturing. The artificial currency is the key problem. Nowadays, most products are coming from China, and the undervalued currency of China makes prices of these products lower than the products which are made in the US. Price is an important key of victory in business. Therefore the manufacturing in the US is deeply impacted.
The Obama’s administration has some way to solve this problem. First of all, the government focuses on the manufacturing of green energy. I think that is the right way. Green energy industry is a manufacturing which need high technology and key techniques, so it is difficult to produce in the countries which focus on manufacturing of supplies. Green energy industry can also create higher profit than the supplies industry. Second, Louis said that the Buy America clause in the stimulus package is another to revive the manufacturing. In this clause, government will favor to purchase American-made product for the infrastructure projects. I think it is the short-term solution. For the long-term solution, changing the product types of manufacturing is the best way to revive the domestic manufacturing.
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