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. 


The Latest


Chart of the Day


The top 0.1 percent's share of the United States economy has grown steadily in the last decade, with their incomes making up 10.4 percent of total earnings in the United States.

Reason to Get Out of Bed in the Morning


Business travel was on the rise in 2011, a sign that companies are more confident of their economic future. One report estimates that business trips rose 2.1 percent, with business-travel related spending climbing up to 7.6 percent. Double-digit growth in hotel revenues are also expected in 2012.