The number has many references. He started His church with 12 disciples. Now, during the present football season, the number represents the fans, especially with home games. They can help the home team by their support both emotionally and statistically. Fans can create a noise level whereby the opposition cannot call their plays effectively. In addition, their support encourages the players to give an extra effort.
Sadly, in the American economy, the number is the percentage of influence that manufacturing consists to the economy. This small percentage is scattered throughout the country which lessens the spillover effect that it once possessed. When we produced all our cars domestically, this helped American steel companies. It helped the textile industry. Its trickle-down effect supported local jobs like restaurants, service industries, food and apparel. Our poverty and homeless situation could be addressed by local government due to better revenues. This is why I say, sadly, the number twelve is a weak digit. There is another reason. The twelve percent influence is still under attack from foreign entities as well as domestic outlook.
Domestically and Foreign
The auto industry is still outsourcing. If it were not for foreign auto-makers establishing plants here in the US, our economy would already be in a recession. These firms are looking to get around future legislation concerning imports by building here in North America. Our two corporations have continually added in Mexico and Canada while decreasing work in the US. In the future new competition will arrive from China and India. Once the twelve percentage is broken, the arrow points to below 10%. Keep in mind that all the ancillaries industries like steel like auto parts like textile have already been replaced. There are related industries that I can argue are just hanging on. For example:
Energy
When I say energy, I refer to oil and gas. The US resourcefulness emerged front and center in this industry with the innovative approach with shale oil. The trickle effect here is steel, service supplies and machinery. We are now the top producing oil nation, but if one were to look at the XLE (energy index), it is at the same level it was in 2006. That is no misprint!
It is no wonder that two Fed governors downgraded our economic outlook. The New York and Atlanta Fed both see what Sebastian has been saying for the past few months.
Future Shock
If one were to look back on our history in relationship to conflict, manufacturing is of supreme importance. The North prevailed over the South due to its manufacturing superiority. WWI conflict came to a decisive end when the US entered the fray. It was led by our manufacturing ability. This same ability along with our resiliency and innovation is what helped us prevail in WWII. All those important influences no longer exist. The biggest uptrend in America today is poverty and homelessness. The candidates running for office had better wake up. We don't need ideas like the Illinois Bill#76. In this so-called recovery, we have lost another 25,000 manufacturing jobs. This is 25K less middle class and 25K more low level wages, at best. We need to declare that outsourcing means that that firm no longer gets US protection. They lose tax benefits and they will be taxed with tariffs like any foreign firm. That is what will make America great!
