President Biden today offered a solution for the soaring inflation afflicting the U.S. right now. However, the president’s solution may appear to be contradictory to some. The solution? Bring factory jobs back to U.S. soil.
What We Know
- President Biden has proposed that the United States focus on bringing factory jobs back to the country. This is in an effort to curb the soaring inflation rates.
- Supply chain disputes likely quelch any cost-savings businesses see by moving labor abroad.
- Addressing the cost and supply chain challenges, the president notes, will work to curb stifling inflation while keeping employment numbers up.
- The goal is to put the U.S. back into control when it comes to consumer needs.
President Biden’s Inflation Plan Changes Thinking On Outsourcing Plans
On Wednesday, President Joe Biden proposed an idea that he believes would help to curb stifling inflation rates. This plan, which includes bringing outsourced factory jobs back onto American soil, will likely be effective in curbing supply-chain issues which are costing consumers millions, the president says.
However, the proposal also reintroduces a long-standing debate as to whether or not moving jobs abroad helps decrease business spending, therefore passing savings along to the consumer. The trend saw many U.S.-based countries seeking factories overseas to rely on cheaper labor.
This resulted in as many as 6.8 million lost manufacturing jobs throughout the U.S. by 2000. However, proponents for moving jobs abroad argue that while jobs may have been eliminated, costs did trend downward for a time, keeping up with the desired economic growth.
Supply-Chain Costs May Have An Impact In Today’s Inflation Rates
Now that the U.S. inflation has hit a 40-year high, President Biden notes that outsourcing is likely behind some of the higher prices plaguing consumers. This, the president notes, is because proponents of moving jobs abroad have failed to consider the costs that come with shipping products overseas.
This, the president adds, has become more prominent by a variety of occurrences leading to soaring prices. Some of these instances include the COVID19 pandemic; shortages of goods such as conductors; storms and wildfires; and most recently, the Russian invasion of Ukraine.
“Making it in America is one of the ways we can address our cost and supply chain challenges,” President Biden said of his plan on Wednesday.
“When we build products we need, we don’t have to wait and we reduce shipping costs and we can get goods moving faster,” he adds.
Biden Says Plan Will Lower Inflation While Maintaining Positive Employment Rates
Biden explains that there are two options the U.S. federal government can take when looking to address inflation. One of these options would be to pull back on the support that comes from programs such as President Biden’s $1.9 trillion coronavirus relief package. However, this, the president notes, would likely cause wages and job growth to slow down.
The other option is to address areas in which costs are continuing to rise. This, Biden says, is where the Biden inflation plan comes in, eliminating the supply-chain spending would be beneficial. Bringing factory jobs back to the U.S. would not only bring jobs back to American soil, but it would also end the cost of bringing products to the U.S. from overseas.
“Making it in America is one of the ways we can address our cost and supply chain challenges,” Biden notes.
“When we build products we need, we don’t have to wait and we reduce shipping costs,” the president continues. “And we can get goods moving faster.”