Its not a matter of manufacturers who can't compete. These manufacturers run highly productive plants. Once the process gets tightened down, the CEO justs lifts the plant up and moves it to China in order to get the gov't provided cheap labor ON TOP of the modern manufacturing process.
The next step is for the CEO to demand that all of his suppliers do the same in order to submit a contract to that company.
These CEOs want to earn revenues in the first world and get western legal protections, but the also want one leg in the world of govt mandated slave labor.
We should make it a point to do business only with companies that support the communities from which they earn revenues.
The profit motive is certainly important, because without profits, a company cannot survive and with low profits it cannot grow or innovate which is necessary for survival.
Most of these companies who move operations to foreign labor and tax markets do it reluctantly.
I know of no company that did it gladly.
Many have just folded and cashed in or bankrupted.
The federal government really can do little for them except to make sure the regulatory environment is not killing them off for no particular important reason and to deal with them on back tax issues.
State governments actually have more ability to help and do not have the resources needed at this time to do so.
I have been worried about this subject for many years and have learned that change is upsetting, but it is change that often sets the stage for new realities and new prospects for profits and employment.
One this that is certain, the assembly line, labor intensive manufacturing operations will not be here much longer. We cannot save them unless we subsidized their balance sheets and we cannot do that for many reasons.
We do, however need to maintain heavy industries that are critical to our security like ship building, electrical grid components and petroleum.
Small manufacturing that rolls with the flow and changes direction quickly can survive well in this market. Mini mills have replaced the big smelters in the steel industry. Small innovative tech firms are making great profits.
Our intellectual capital is as good as ever but needs improvement. Our work ethics have suffered and need to improve. Our ability to innovate and take risks has suffered in recent years and Bush is trying to jump start it.
Our future is not dark. On the contrary, it is wide open and likely will be a bright future, but we need to put our noses to the innovative grindstone and stop making improvements with productivity alone. That street has come to a end I believe.