{"id":5218,"date":"2025-05-06T09:00:50","date_gmt":"2025-05-06T09:00:50","guid":{"rendered":"http:\/\/burn-the-priest.com\/?p=5218"},"modified":"2025-05-06T11:37:23","modified_gmt":"2025-05-06T11:37:23","slug":"trumps-latest-move-proves-his-manufacturing-golden-age-is-just-fools-gold","status":"publish","type":"post","link":"http:\/\/burn-the-priest.com\/index.php\/2025\/05\/06\/trumps-latest-move-proves-his-manufacturing-golden-age-is-just-fools-gold\/","title":{"rendered":"Trump\u2019s latest move proves his manufacturing Golden Age is just fools\u2019 gold"},"content":{"rendered":"

President Donald Trump continues to promise<\/a> that his tariff regime will usher in a new Golden Age for American workers with an explosion of high-paying manufacturing jobs across the Rust Belt and America.\u00a0 These tariffs will certainly drive up the costs of imports, hurting American consumers. As demand for foreign goods declines, the unfairly maligned trade deficit targeted by the president may indeed narrow. But more expensive imports also guarantee the supposed manufacturing renaissance will turn out to be fools\u2019 gold for American workers and will not boost exports.\u00a0<\/p>\n

Contrary to popular belief, American exporters have enjoyed<\/a> a manufacturing renaissance. Since 1994, American exports have nearly\u00a0tripled, even after you adjust for inflation.\u00a0 \u00a0<\/p>\n

American goods exported exceeded $2 trillion<\/a> last year. America\u2019s aerospace industry now exports nearly $100 billion a year. The American automotive sector exports more than\u00a0$160 billion annually, nearly doubling in inflation-adjusted terms since 1994. American soybean farmers supply livestock around the globe with feed. Each of these export-intensive sectors stands to lose jobs due to these tariffs.\u00a0<\/p>\n

US TRADE REPRESENTATIVE SAYS IT\u2019S A MATTER OF \u2018WEEKS\u2019 BEFORE NEW TRADE DEAL ANNOUNCEMENTS<\/strong><\/a><\/p>\n

First, don\u2019t expect an overall gain in American manufacturing jobs. Certainly, individual companies may benefit. A tariff on steel might save a few jobs at a specific steel mill. But the cost for every American manufacturer using this higher-priced domestic steel will also increase. \u00a0<\/p>\n

American manufacturing relies on a complex global supply chain utilizing imported parts. Automakers, construction firms and appliance makers all must pass this cost along \u2014 sometimes cutting wages or even jobs to stay afloat.\u00a0<\/p>\n

Numerous American companies have already begun laying off American workers in response to the tariffs, including at\u00a0five Stellantis plants. Currently,\u00a0up to 30% of North American auto production\u00a0may be temporarily halted due to the tariff uncertainty. These headlines will become routine if the trade war continues.\u00a0<\/p>\n

American manufacturers, who export their American-made goods to the rest of the world, will fall behind as their input costs increase. This danger compounds as other nations retaliate against us by imposing their own barriers.\u00a0As American exporters find their market shares shrinking and costs rising, American companies will see their profits plunge and American jobs vanish.\u00a0<\/p>\n

Second, the limited tariff-created manufacturing jobs will not be better paid jobs. Good-paying jobs are contingent on productivity.\u00a0Higher tariffs lower labor productivity\u00a0as less efficient businesses are protected from competition. \u00a0<\/p>\n

Thanks largely to the innovation and efficiencies from free trade, our jobs market has diversified away from a concentration of jobs in a lower-paying, physically demanding industry. The burgeoning sectors have supplied tens of millions of Americans with opportunities in safer professions.\u00a0<\/p>\n

Productivity\u00a0overall of workers doubled in just\u00a0the past 40 years. It\u2019s not just investors or managers who benefit as resources yield more output. Workers share in this abundance of affordable, available and diverse goods.\u00a0<\/p>\n

Our so-called “trade deficit” has largely enabled this boom in newer, more productive jobs. The surplus dollars overseas generated by us importing more than we export flow back to the United States often in the form of foreign direct investment (FDI) in businesses here \u2014 exploding more than 500% compared to thirty years ago to\u00a0more than $330 billion last year. If the president succeeds at eliminating this trade deficit, workers employed in these new jobs will suffer as foreign direct dries up.\u00a0<\/p>\n

Economic distortion caused by tariffs will shift jobs and resources to industries in which we lack a\u00a0comparative\u00a0economic advantage. As government policies deploy resources to less efficient businesses, more individuals will be forced to take these less desirable jobs.\u00a0<\/p>\n

The overall decline in business output translates not only to less profit; it yields less take-home pay and consumption for middle-class families. Workers will be harmed by this shift to lower-paying jobs.\u00a0<\/p>\n

Contrast this world of fewer, lower-paying jobs with a competitive environment which ensures that over time, each employee can produce more without working more. Business owners, employees and consumers all benefit. Higher prices on imported goods will not magically make American manufacturers more efficient or innovative. Quite the inverse! \u00a0<\/p>\n

By shielding them from competition, these businesses will grow complacent \u2014 with less incentive to improve, cut costs, and deliver better products at lower prices. As productivity declines, the standard of living for workers will also decline.\u00a0<\/p>\n

CLICK HERE FOR MORE FOX NEWS OPINION<\/u><\/strong><\/a><\/p>\n

The ingredients for a flourishing manufacturing sector are lower regulations, lower taxes and more freedom to trade with others. In fact, many jobs returned to the USA after the Tax Cuts and Jobs Act (TCJA) because America became more competitive with the rest of the world.<\/p>\n

Embracing even part of this recipe has created a “Golden Age” for the past 40 years. Millions of people who would have previously worked in lower-paying factory jobs, now work in higher-paying, advanced services. \u00a0<\/p>\n

In fact, we now export far more of these services than we import. For this reason, the typical American family enjoys an annual income $26,000 greater\u00a0than just one generation ago. A record percentage of young adults are participating in our stronger economy.\u00a0<\/p>\n

Tariffs are a roadblock to prosperity, not a highway.\u00a0<\/p>\n

We\u2019ve been here before: Look at the Smoot-Hawley Tariff of 1930. It was meant to protect American industry, but it prolonged the Great Depression by choking global trade. The layoffs, price hikes, financial carnage and cratering approval ratings caused by this historic tax increase may cajole the president into soon relenting. \u00a0<\/p>\n

If not,\u00a0the promised manufacturing jobs will come at the expense of jobs elsewhere and be far fewer in number than promised. We will produce less, consume less and earn less. The Golden Age will deliver nothing but fools\u2019 gold: Politically caused scarcity in an age of abundance.\u00a0<\/p>\n

Joel Griffith is a senior fellow at Advancing American Freedom.\u00a0<\/i><\/p>\n

CLICK HERE TO READ MORE FROM MARC SHORT<\/u><\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

President Donald Trump continues to promise that his tariff regime will usher in a new Golden Age for American workers with an explosion of high-paying manufacturing jobs across the Rust<\/p>\n

Continue reading <\/use> <\/svg>Trump\u2019s latest move proves his manufacturing Golden Age is just fools\u2019 gold<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":5183,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[],"_links":{"self":[{"href":"http:\/\/burn-the-priest.com\/index.php\/wp-json\/wp\/v2\/posts\/5218"}],"collection":[{"href":"http:\/\/burn-the-priest.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/burn-the-priest.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/burn-the-priest.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/burn-the-priest.com\/index.php\/wp-json\/wp\/v2\/comments?post=5218"}],"version-history":[{"count":1,"href":"http:\/\/burn-the-priest.com\/index.php\/wp-json\/wp\/v2\/posts\/5218\/revisions"}],"predecessor-version":[{"id":5219,"href":"http:\/\/burn-the-priest.com\/index.php\/wp-json\/wp\/v2\/posts\/5218\/revisions\/5219"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/burn-the-priest.com\/index.php\/wp-json\/wp\/v2\/media\/5183"}],"wp:attachment":[{"href":"http:\/\/burn-the-priest.com\/index.php\/wp-json\/wp\/v2\/media?parent=5218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/burn-the-priest.com\/index.php\/wp-json\/wp\/v2\/categories?post=5218"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/burn-the-priest.com\/index.php\/wp-json\/wp\/v2\/tags?post=5218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}