Fort Report: Made in America
Television these days features all sorts of reality shows. Some of the most interesting show people repurposing furniture, restoring cars, or renovating family homes—all seemingly ordinary activities that we find very attractive. Perhaps it’s the drama of a struggle overcoming a problem and working hard while having fun that draws our attention. We are fascinated by the passion and personality of people making good things, and making good things better.
Beyond reality TV, this process is at the core of the human dimension of a genuine free market. I think a society that values its ability to make things is probably a happier society. Markets function best when they empower people to develop their ideas, work with their own two hands, and create products that benefit them and others.
As debate rages in Washington over the economics of trade policy, it is important to unpack the different components of this complex discussion. First, we live in an increasingly interconnected world. Many people feel a sense of helplessness in the face of economic factors that are bigger than what they can control. Although new bridges of economic linkage can enhance quality of life, especially in developing countries plagued by poverty and hunger, many people are justifiably concerned about the relentless march of globalization—and just how fair this is to America.
Second, in theory and in reality, trade can bring local benefits, particularly to Nebraska. For example, our farmers and livestock producers compete very well in the global marketplace. This translates to economic multiplier effects at home, which is one reason why we have the lowest unemployment rate in the country. By creating products that are needed on the world stage, we help fight poverty and feed the hungry. Trade can also strengthen our state through vibrant cultural programs, with many of our social institutions receiving international visitors.
Third, it is important to be honest and simply say: There is no such thing as “free trade.” That is an idealized, academic concept, and it is not reflected in reality. Other countries cheat, subsidize industries, manipulate currencies, and fail to implement protections for the environment, workers, and consumers. An unlevel playing field harms manufacturing and our small business sector. Not everyone in America has benefitted like we have in Nebraska.
Setting aside this conversation about the benefits and costs of trade, what can we do overall to restore America’s economic wellbeing? In 2013, Harvard Business School Professor Michal Porter identified several areas of federal policy that could form a bipartisan “consensus” among the business community and the general public about a smart way forward. Appropriate corporate tax reform, a sustainable federal budget, streamlining regulations, infrastructure investments, trade enforcement, and responsible energy policy are the structural factors that most effect our economic wellbeing and positioning in the world. But these initiatives require more than the typical dysfunctional divides within Congress. They need thoughtful and bold resolution.
In the meanwhile, many Americans are suffering. So what is achievable now, in light of the ongoing trade negotiations?
Several Members of Congress and I hope to develop a legislative framework that centers on a key concept: reviving the “Made in America” label. This will require re-imagining a policy environment that helps domestic manufacturers employ the tools they need to compete effectively in the 21st century global marketplace, revitalizing consumer awareness, and fixes to improve small business competitiveness. Enhancing our ability to use our resources wisely to make things here, provide benefit to consumers, and—most importantly—sustain work and family life ought to be the goal of any economic policy, including trade. There are no silver bullets or easy wins. But perhaps this renewed vision of economic success can ensure that more goods are “Made in America” again.
