As part of an effort to push "insourcing," President Obama is proposing tax incentives for companies that move manufacturing jobs back to the United States. “I don’t want America to be a nation that’s primarily known for financial speculation, and racking up debt and buying stuff from other nations,” Obama said during an announcement yesterday. “I want us to be known for making and selling products all over the world stamped with three proud words, ‘Made in America.’” The U.S. economy added manufacturing jobs for the first time in over a decade the past two years, so the president hopes the incentives will help deepen that trend. The proposal—which would also curtail tax breaks for those who continue to search for cheaper labor abroad—gives a hint of the populist economic message Obama plans to use in his State of the Union address and the general-election campaign. Reviving American manufacturing is a compelling narrative, especially on the campaign trail, but the truth is it's still unclear how or if the sector can work in America again in a way that gives workers desirable jobs and helps the economy. There are still many questions to be asked and problems to fix when it comes to manufacturing in the U.S., but this proposal isn't a bad start.
- Private Equity: Hero or Villain? Bloomberg Businessweek
Poverty in America Likely to Get Worse, Report Finds The Guardian
- New Study Shows How Golden Parachutes Are Getting Bigger The Daily Beast
Chart of the Day
Reason to Get Out of Bed in the Morning