Exports, imports, and unemployment

Abstract

Many of our legislators and economists are looking into the wrong end of the telescope when they examine the ills of our economy. Also, the unions themselves have evidenced blatant ignorance regarding the problem of unemployment. During the past five years, rounds of strikes have increased wages substantially each year. This action produced the inflationary conditions that forced manufacturers out of the country until now only a small fraction of the U.S. labor force produces goods to compete with imports. t is a matter of survival that American companies have set up offshore manufacturing facilities to produce goods for the American market. In electronics, it is believed necessary, under free trade conditions, to establish approximately half the total production capabilities overseas. In this way, they not only compete with foreign manufacturers for the American market, they can also compete for the world market, which, incidentally, is no help to our balance of trade. The Senators ...