Business Needs Government Backing
The 104th Congress has targeted major budget cuts in programs that keep America competitive. Support for such diverse areas as technology development and tourism will be history. Little or no increases will go to export promotion programs.
The United States has to realize that in an increasingly competitive world it has to do more, not less, to maintain or improve U.S. international economic competitiveness. In all areas of economic activity, we are literally at war. When comparisons are made in our support of export finance, promotion, information resources or technology development, the United States compares more favorably with underdeveloped nations than with the industrial elite.
The current administration has made a serious effort to elevate our international industrial competitive position. Programs and policies in the trade arena are now more aggressive and have received more support than those of previous administrations. This administration recognizes the importance of maintaining and increasing U.S. competitiveness to ensure our long term economic viability and our position as the world’s only superpower. To keep and maintain the peace, we must be strong both militarily and economically.
The philosophical differences between the Executive and Legislative branches at this time in history are unproductive, and they undermine our international economic potential. Congressional policy makers feel the government has little or no role to play in economic development, and that left to itself, market forces will determine winners and losers. Wrong!
While we fiddle, Rome burns. The U.S. export industry, a basic one to our industrial health, now controls 40 percent of the $65 billion export market, or $25 billion in sales worldwide. The Asians, however, predict that by the year 2000 they will control 85 percent of worldwide sales - because they have the support of their governments.
The Korean government has set up a $400 million dollar fund to improve and enhance its auto parts industry - primarily to increase exports from $12.9 billion in 1993 to $39.7 billion in 1997. Where do you think this increase will come from? Whose market share will be declining?
U.S. medical equipment sales captured 64 percent of the world’s market just a few years ago. Thanks to increased competition, health and safety regulatory barriers, and our own Food and Drug Administration, we now sell just 46 percent of the world’s medical equipment.
America’s technological leadership is also in jeopardy.
Since World War II, Americans have demonstrated an unwavering bipartisan commitment to U.S. technological leadership. Investments in science and technology have created a technology base that is the envy of the world, and have paid rich dividends - creating new industries, millions of jobs and higher living standards for Americans.
Presidents from Truman to Bush have supported a strong role for the federal government in building the nation’s scientific and technical capabilities. Proposals to cut the United States’ investment in civilian technology development (while competitor nations such as Japan and Germany are substantially increasing their investment in this area) are unrealistic. On a per capita basis, our competitors are already investing 30 percent more than we are, and with new funding are increasing it by another 30-35 percent. This is the real world.
Cuts proposed by the Congress amount to unilateral disarmament - while the American producer, his employees, shareholders and the government entities who rely on his success, all become losers. America has to be vigilant and continually aware that competitive economic forces exist, and that our government has a major role in working with the private sector to ensure a level playing field for all American producers.
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