Washington, D.C. is home to 19 Smithsonian Museums that are visited yearly by nearly 30 million people. These museums, commonly referred to as “our nation’s attic”, hold great American items, however the gift shops at the museums hold a very different product. Many items in the shops have been “Made in China”.
U.S. Rep. Nick Rahall of West Virginia, top Democrat on the House Transportation and Infrastructure Committee, thinks it is utterly absurd and frankly insulting that the patriotic American mementos visitors are taking home today are stamped with the words “Made in China”.
Earlier this year, Rahall introduced the "Buy American at the Smithsonian Act of 2011" because he doesn’t think our nation's attic should be stocked with goods from China that could be made in the United States.
The Smithsonian is an example of the state of American manufacturing today. As more steps of the manufacturing process are outsourced to other countries, American products are harder to find, and often more expensive to purchase.
Critics argue that as manufacturing moves overseas, American jobs go with it. However, some companies have committed to bringing manufacturing back home, recalling some of the "Made in U.S." zeal of the 1970s.
Take bubble gum and baseball cards.
Very few brands are part of the DNA when you're growing up, and Topps is one of them. Topps was founded in 1938 by the Shorn brothers as a gum company. In 1952, the company introduced its baseball cards. The company's been a pillar in America off the back of baseball cards ever since. Topps executives recently made the tough decision to renew their lease in New York City's Manhattan, a move that may cost more money but remains true to the company's American roots.
Despite global market pressures, U.S. manufacturing, taken by itself, would currently rank as the sixth-largest economy in the world, just behind France and ahead of the United Kingdom, Italy and Brazil. At $2.155 trillion, total U.S. manufacturing output is 45% higher than China's. Despite the increase in output, however, the number of jobs in the U.S. manufacturing sector is down more than 7 million since the late 1970s.
Some of the job loss can be blamed on new technologies and computerized manufacturing, which cut down on the need for manual labor. Outsourcing to countries with lower wages also reduces jobs available in the US.
But these short-term savings could cost the American economy in the long term.
Some argue that what is “too expensive” , and what we “can't afford”, is to continue sending American jobs overseas to China, India, and elsewhere. Americans should see buying "Made in USA" products as helping their neighbor, and the national economy, to recover. Americans often seek out products that are made in America, and most are willing to pay a little extra if they know the money will support American jobs.
Restoring all-American products to the country's prized institutions, starting with the Smithsonian Museums, is an important step, both as a stimulus to the economy and a national moral boost.
No one can argue with a straight face that making the Smithsonian sell American-made products will solve our trade deficit, or it will be responsible for our economic recovery. But, it certainly sends the wrong signal, and is highly ironic, that the American mementos that American tourists take home from their American capital are made, not in America, but in China.
Garry Ridge, CEO of WD-40, is the proud head of one of America's most recognizable brands. It was formed in San Diego in 1953 to create a line of rust-prevention solvents and degreasers for use in the aerospace industry. Almost 60 years later, Ridge, who is from Australia, doesn't see the company as exclusively American. He believes they are a global company that happens to be based in San Diego, but once upon a time they lived in a house, in a street, in a suburb, in a city in the world…today they live in a house of the world. Half of the company's business is now outside of the U.S.
Another argument is that "Made in America" isn't a clear-cut problem or solution; rather, it is a complex game of give-and-take within a global market. There's no doubt that many of the jobs that used to be American mainstays are now located in other countries, but that's only half the picture of globalization. We haven't seen nearly enough attention paid to the companies that have been able to keep or even add to jobs by buying parts overseas at far less than they would cost in the United States; or those whose sales overseas have grown dramatically, while the lion's share of their jobs stay in America.
Products from global companies like WD-40 may not be "Made in America," but the jobs created in America and abroad still have a large impact on the nation's economy.
According to Ridge, efficiency should take priority over nationality when deciding where to set up operations. It depends on cost effectiveness, which sometimes benefits U.S. manufacturers and other times not. Companies need to be the best they can be, to be the most competitive they can be. A closed market will only stunt innovation in the long run, which could result in the U.S. economy falling farther behind.
Consumers are often led to believe that, because a product has a "Made in USA" label, it is automatically of higher quality than foreign goods. However, the "Made in the USA" label simply means that the product is made with "all or virtually all" components in the U.S.
Some have argued the "Made in USA" label is too exclusive and can actually hurt the economy by discouraging consumers from buying goods that are not completely made within US borders, but which benefit the country by creating jobs or promoting innovation.
Others argue that the general consensus seems to be that this designation should be made by who gets the primary benefit or value of the sale. If the United States is the primary beneficiary of the sale, why should the seal of 'made in the USA' not be used even if a minor percentage of the product is outsourced elsewhere?
Further, U.S. labor laws and environmental standards are typically more stringent than in other countries, meaning many products are more expensive to manufacture entirely on home turf.
Fred DeLuca might be the closest example of the quintessential "American Dream" in action. When he was 17, DeLuca borrowed $1,000 from a family friend in 1965 to start his first sandwich shop, with the goal of paying for college.
Today, his shop, Subway, is the largest sandwich franchise in the world, with 34,000 locations in 94 countries and sales of more than $13 billion in 2009 alone.
But when asked if large corporations have a responsibility during these tough economic times to buy American to create more American jobs, his answer was clear: No.
He commented that here in the United States, the American manufacturers earned our business and we're happy to buy from them. He doesn’t really think it's important to just say 'buy American' for the sake of buying American.
Now with small stores in 94 countries all over the world, DeLuca said that it would be nearly impossible to run his business with the kind of precision it needs without franchising to small business owners.
These are small businesses, and if the local people run the stores, they can do an excellent job, and they can benefit from the power of the brand.
According to some fostering these small businesses, whether within a franchise or not, is crucial to an American recovery. Now we are seeing enormous opportunity for small businesses to export goods and services.
The National Export Initiative in cooperation with the Small Business Association ,helps small businesses with capital, advice, and connections that help them get access and opportunity to exporting. The goal is to double America's exports over the next five years. In this realm, small businesses are key. With strides in technology, small businesses have more opportunities and tools to be able to market and sell abroad.
