The fix for the economy

       Alexander Hamilton, (Ten dollar bill dude) is credited as being the first American protectionism theorist. Let's look at some of his ideas.

1. "Protecting duties." (Tariffs.)
2. "Prohibition of rival articles or duties equivalent to prohibitions." (Outright import bans.)
3. "Prohibition of the exportation of the materials of manufactures." (Export bans on raw materials needed for industrialization here at home.)
4. "Pecuniary bounties." (Export subsidies, like those provided today by the Export-Import Bank and other programs.)
5. "Premiums." (Subsidies for key innovations. Today, we would call them research and development tax credits.)
6. "The exemption of the materials of manufactures from duty." (Import liberalization for industrial inputs, so some other country can be the raw materials exporter and we can industrialize.)
7. "Drawbacks of the duties which are imposed on the materials of manufactures." (Same idea, by means of tax rebates.)
8. "The encouragement of new inventions and discoveries at home, .and of the introduction into the United States of such as may have been made in other countries; particularly those, which relate to machinery." (Prizes for inventions and, more importantly, patents.)
9. "Judicious regulations for the inspection of manufactured commodities." (Regulation of product standards, as the USDA and FDA do today.)
10. "The facilitating of pecuniary remittances from place to place." (A sophisticated financial system.)
11. "The facilitating of the transportation of commodities." (Good infrastructure.)

(http://www.huffingtonpost.com/ian-fletcher/america-was-founded-as-a_b_713521.html)

       The basic idea here is to make sure American industry was given preference.  We forgot about that in the 80's.  In the 90's the factory workers, who now had no factories to work in, switched to construction jobs.  In the 00's those jobs began to dry up, as an economy that produces nothing cannot support itself.  So far, in the 10's we are seeing crippling unemployment, and the jobs that are being created don't pay as well as what was lost.  What do we do about it?

       Well, we begin by reinstating Hamilton's brilliant ideas.  That action alone will not immediately fix everything, but needs to be done.  Then we begin to assist the growth of companies that make pre-fabricated and modular homes.  Our workers mostly came from factories and switched to construction, and so are uniquely qualified for this.  The homes, or modules, are the same size as a standard shipping container.  This allows easy transport by road, rail, or ship.

       But to whom do we sell?  Our trade partners in Europe have regulations about historic areas, and their own protectionist policies.  But, much of India and Africa have a need.  We could provide them expertly built and wired homes, giving them no need to develop that particular set of skills domestically, and perpetuating the need to import homes from us.

       We would have a great export business for homes going in no time.  It would be a status symbol to have an "American Style" house.  This would set up further demand for American built goods.

       Once these trade partners are cemented, longing for the good stuff America can provide them, we leverage our true strength.  Food Production.  We do it better.  We do it cheaper.  We do it so well, we pay farmers to not grow food, just to keep the prices up.  Those prices are still a fraction of what the same food would cost in Europe.  

   

       I would point out, as well, that protecting American interests should not ever be a partisan issue.  Many say protectionism is something that the right disdains, as it hurts trade; and the left embraces, because it helps unions.  If it helps unions, that is only because they are covered under the broader category of "American".  If it hurts trade, the trade being hurt was not to our advantage anyway, so let it be hurt.  American dollars for sub-standard foreign goods is never a good trade.  

       Of course this idea is expressed facetiously.  Well halfway facetiously.  We do need to protect our interests better.