WATCH: What can the US learn from Germany about manufacturing?

Posted by TGarland on 02/19/2014

Yesterday, Alliance for American Manufacturing (AAM) President Scott Paul appeared on The Ed Show on MSNBC to talk about the recent union vote at the Volkswagen plant in Chattanooga, Tennessee.

Said Paul:

There is really no evidence that unions cause that [outsourcing], part of it is a lack of a good manufacturing policy...Germany has $48/hour average wages in manufacturing and 23 percent of the German economy is manufacturing. The US average wage is $32/hour, but we have about half of the manufacturing that Germany has. [Outsourcing] has everything to do with trade policy and currency, health care costs and some other factors.

In an op-ed last year, Paul gives more evidence as to why the U.S. should look to Germany as an example in manufacturing:

Berlin’s strategy is paying off. While the U.S. ran a $540 billion trade deficit last year, Germany hasn’t run a trade deficit in decades. Its 2012 surplus was the second highest since 1950. Roughly one-fourth of its workforce is now employed in manufacturing -- and with all of those workers earning high wages, Germany has guaranteed itself a healthy middle class with the spending power and savings to weather future recessions.

What’s the quickest and most effective way to combat rising trade deficits, you ask? Stopping currency manipulation!

Tell your representiaive or senator to support American manufacturing by getting tough on China's currency manipualtion.

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