From MSCI Advocacy News:
The Milwaukee Journal Sentinel recently asked the 2 presidential campaigns to explain their manufacturing agenda:
President Obama has released a framework for tax reform that would make 3 key changes:
1-effectively cut the top corporate tax rate on manufacturing income to 25% and to an even lower rate for income from advanced manufacturing activities by reforming the domestic production activities deduction.
3- Clean Energy: the president’s framework would make permanent the tax credit for the production of renewable electricity and would also make the permanent production tax credit refundable.
1-Pursue fundamental tax reform to bring the US corporate tax rate in line with other developed nations, and regulatory reform will cut through the red tape driving up costs for our businesses.
2-A strategy to make North America energy independent by 2020 will produce affordable and reliable supplies of energy for our economy potentially creating more than 1 million jobs.
3-The United States would stand up for its interests in international trade. As president, Mitt Romney will demand that all nations play by the rules thereby encouraging a level playing field.
According to the National Federation of Independent Business, small employers are stuck in neutral. Over ¾ of those surveyed added no new employees in September; 13% reduced their work forces.
In a separate report the U.S. Chamber of Commerce reported that of those businesses surveyed only 16% said they plan to add workers over the next few months. Also 62% of small business owners said the expiring tax cuts from 2001 and 2003, along with the sequestration cuts would negatively affect their business’s growth.
The Bureau of Labor Statistics released its employment report for September and it magically showed the unemployment rate dropping from 8.1 % in August to 7.8% in September. These are obviously cooked numbers in front of the election. Read and listen to the news, things just aren’t that good out there.
- Manufacturing Industry lost 16,000 jobs in September and 22,000 jobs in August.
- Factory orders dropped 5.2% in August from the previous month, the largest drop in 3 years and though U.S. auto sales are 13% ahead of the same time last year, common sense begs the question: who will continue to purchase new automobiles without substantial and sustained job creation in this country?
On Tuesday the Wall Street Journal reported the IMF (International Monetary Fund) states “the global economy risks skidding toward recession just three years after pulling out of the previous one. Risks for a serious global slowdown are alarmingly high.” The IMF upgraded growth prospects for only one major nation as compared with its July forecast; it projects the U.S. would grow 2.2% this year. That’s shaky at best with the last quarter coming in at a blazing 1.3%.
I know the outlook doesn’t appear to be rosy but we are in the United States of America and as slow as things may be, our economy does NOT come to a halt. Businesses of all stripes will continue to make product, purchase items to manufacture those products, use ships, trucks and rail to ship those products, by machines to produce goods. There is always business to be had in America.
Raw Steel Output:
Mills are operating at an average capability utilization rate of 76.9% up 4.2% from the like period last year. Scrap prices have taken hit, buyers forcing prices down $50-$60 a ton for October.
We are 3 ½ weeks from our general election and I believe much of the dire outlook described above is directly attributable to an Obama win in November. Should the Romney-Ryan ticket prevail the horizon will be much brighter much quicker. It is incumbent on American citizens to exercise their right to vote. Encourage your employees, friends, family and business acquaintances to do so.