Friday, August 24, 2012

Asia's Secret Subsidy Hitting USA Manufacturers
 
 


                                    
 


                       
           
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Sometimes the reality of how our USA manufacturers are held at a disadvantage is so absurd that it seems unbelievable. Our media focuses on wage differences, yet the reality is much more multifaceted.
For example, ever wonder mathematically how they can get all of that stuff across the Pacific half way around the world economically versus making it in Ohio, Illinois, or any other US state? After all, not only do they have to ship raw materials to the factories in China, but they have to ship the finished goods all the way to the USA. One would thinkthe cost of doing that would be prohibitive, yet it has been turned into anadvantage.
Our own manufacturers not only have to meet environmental standards when they make something, but also when the raw materials or finished goods are moved here, those trucks or trains that aredoing it are using heavily regulated fuels.
On the other hand, Asian manufacturers use ships that burn completely unregulated fuels. Those low, cost “bunker fuels” give them a big cost advantage.
Can you guess how many times the amount of sulfur alone is in bunker fuel versus diesel? Ten times? Fifty times? 100 times? According to Scientific American it is 1800 times the sulfur of diesel fuel!
I discuss this in more detail in my book “Re-Made in The USA”, but according to the British newspaper The Daily Mail, just 16 ofthose big cargo container ships create as much pollution as ALL the cars in the world.
The unregulated fuel they use equates to not only a massive amount of pollution, but also a direct subsidy for importers versus our domestic producers. Mega-Mart gets chintzy goods to sell and we get fewer jobs AND dirty air.
This has begun to change, as according to the Scientific American article, just this month standards have started along 200 miles of our coast, though we still have a long way to go, as Asian shippers will still be polluting with 600 times more sulfur than diesel fuel near our coast.
It is a travesty that we have to breathe this poison, and that makers in China, Korea, etc. are subsidized in this way whileour own manufacturer’s hands are tied. We have known about this issue for someyears, although it is only just getting the attention of the bigger media outlets. I will be bringing it up in a national radio appearance today on Ed Shultz’s show, and pushing hard to get the media’s attention.
Sometimes it seems no small miracle that the USA manufacturers we work with are surviving at all. Thank you for standing with us!
New Items:
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The original Tube Sock Hat is proudly made in North Carolina using USA cotton. These are made to last. They are fun and will definitely last through any abuse that special guy can dish out.
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Sincerely,
Todd
Todd Lipscomb
Author of the book “Re-Made in The USA”

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