Can the Development of American Manufacturing Shift Economic Priorities?
The Beginning of an Investigation
Yo, this dude talking about tariffs again? Yup! But I swear it’s different… check it out:
What’s the main priority when it comes to these tariffs? Well, I would argue the retrieval of manufacturing jobs from other markets, the protection of existing American manufacturing, and the strengthening of the American job market with higher paying jobs.
So, over the next few weeks (maybe months) I’m staying on top of this story by following these questions: Is this ‘golden age’ idea of bringing back well paying manufacturing jobs just some shiny piece of our past that’s being waved in our faces? Or, is there a legitimate desire and need to bring back manufacturing so that we can reinvest in struggling communities throughout the nation?
While I understand that there are genuine concerns that move beyond manufacturing when it comes to tariffs, in the sense that everything in economics starts a chain reaction of unpredictable events, I will keep my focus on manufacturing and the strengthening of the American job market because… well I am not an economist. However, I can travel to and speak with people and communities that are desperate for investment, and I can seek to understand the ways in which an increase in well-paying manufacturing jobs could have an impact on these communities. So that’s what I’m gonna do and I hope you follow along.
The two places where I will focus my investigations are the Austin neighborhood in Westside Chicago and McDowell County, West Virginia. Two very different communities, yet struggling to overcome similar obstacles. Both, with a strong presence in American history, both largely left behind.
Today, I begin with West Side Chicago.
Economic Approach
Let’s back up real quick to last week’s article and pro-tariff economist Oren Cass. I’ll be using his economic philosophy to set the tone because it is his understanding of the importance of manufacturing jobs that gives these tariffs a chance to generate serious progress. Also, I urge you to read his work and that of competing economists to make up your own mind.
When it comes to economic theory, Cass argues there has been a pervasive idea that regardless of how America’s ‘economic pie’ grows, as long as it grows, it’s a job well done. This has resulted in an absolutist focus on the short term where whatever grows the economy in the short term is good. However, this approach also failed to acknowledge the long run effects of these decisions for middle America.
He also argues that when it comes to developing and reinvesting in struggling communities, generating some sort of industrial hub or investment epicenter is fundamental to genuine growth. This, he argues, is superior to government money that does not create a fundamental structure on which to build a local economy. A factory, for example, employs many within the community and also allows local businesses to open up, like shops and restaurants, that ultimately further the distribution of that investment.
Furthermore, the expansion of a well-paying manufacturing sector may come at the expense, at least in the short term, of people who are already thriving in this country. Thus, the strengthening of these sectors could operate as a sort of redistribution of wealth in our country that is done through the restructuring of market forces towards working class people and towards those struggling communities.
It is this idea I would like to touch on.
Workforce and Job Development - WestSide Health Authority (WHA)
The Workforce and Job Development Initiative at the Westside Health Authority, in the Autin neighborhood of Chicago, aims to introduce people from the community of Austin, ex-offenders, youth, and adults throughout the community to manufacturing career opportunities. By offering hard skill training in manufacturing, robotics, and welding as well as providing wraparound services like assistance with driver’s licenses and documentation, they partner with companies like ITW, a global multi-industry manufacturing leader, to create job pipelines. The goal is to enhance opportunities related to entry-level manufacturing jobs that grow into career paths.
Furthermore, the community of Austin is seeking to expand the reach of these manufacturing programs through the development of the new Aspire Center for Workforce Innovation. Opening within the next few months, this state of the art facility will be open to the public and will provide local residents with the ability to increase their workforce capacity by working with heavy machinery. The center will also have an office and partnership with the Cook County Department of Corrections in order to orchestrate a strong bond between the community and public defenders, and to enhance workforce training for ex-offenders.
As of now, many of the jobs WHA places people in are exported to other communities since Austin isn’t home to any industrial plants, but Chicago is a longstanding industrial hub in our nation. Developing plans to increase investment and the placement of industrial centers in communities like Austin can become a part of local community discussions with an increase in available manufacturing capital. Although, whether or not that is something the community desires is left up to them.
Regardless, the development of well-paying manufacturing jobs is a key focus for community building coalitions seeking to provide career opportunities for their community members in places like Austin. This is especially important for people who may have a criminal record and may find it difficult to find work in other economic sectors.
In the coming weeks, I seek to investigate and understand these programs and to speak with people who have been impacted by programs like this. However, at this moment I simply point this out in order to shine a light on something that is not being discussed in relation to these tariffs. There are important macro level questions that need sorting out, but if we don’t also highlight those who are struggling in this country, those who deserve a helping hand and have been pushed down continuously by this system that prioritizes the growth of the overall pie over the effect this has on individual communities, then we are missing an important component of this conversation.
When we talk about shifting the dynamics in our economy, the focus should not always remain on how it affects the stock market, although I acknowledge that is vitally important as well. We should also begin to understand our own economy, who it works for, and how we can develop productive conversations about ways in which it can be improved so that it helps all Americans, not simply those at the top. And maybe Austin can stand as an entry point into this reorientation of economic priorities. Stay tuned in the coming weeks to find out.
C.K.