President Obama presented a challenge to American society in his State of the Union address-a model for job creation and economic recovery in the era of globalization. A vision of the 21st century that takes into account the lessons learned and the measured results of the policies implemented over the last few decades by Democratic and Republican presidents.
No one can close the Pandora’s Box of globalization, the export of jobs and the global search on the part of large corporations for low-cost manufacturing locations, because they must earn profits and answer to shareowners. An inherent corporate loyalty capable of negotiating lower returns in exchange for creating more jobs in the U.S. does not exist either.
Therefore, the tax reform the president proposed is significant. It is logical to grant tax benefits and incentives to manufacturing companies that generate local jobs. At the same time, it makes no sense to give tax deductions to those moving jobs overseas. Job creation should not be considered similar whether the employment is in Asia or the state of Georgia. As simple as that.
It is hard to imagine that a proposal like this could pass a Republican-dominated House of Representatives. But at least it gives a viewpoint that is new, positive and realistic in its focus to confront the challenges of globalization.
For years, it has been said that being a manufacturing nation is a thing of the past, that financial services were the present and future. That type of country collapsed under the mortgage crisis, leaving an income disparity never before seen in the history of the United States.
The current growth model cannot be changed by the free market or small tax adjustments. It is the federal government’s job to guide and promote national investment, job training and job creation within our borders.
This is a radical idea for those who think unrestricted corporate wisdom can solve all of the nation’s problems. We can clearly see this is not what it’s like. The proposal shifts the paradigm from resigning ourselves in the face of the strength of globalization to having an active and positive vision.