Boosting the Economy

Last week I delivered a speech in Michigan, a state some are writing off as an economic basket case. I told an audience of small and mid-size Michigan businesses that I couldn't disagree more with that assessment. In fact, I said there were two things that could not only help lift up the Michigan economy, but the national economy as well.

 

The first may surprise you--trade. Few Michiganders appreciate the positive role free trade plays in the state's economy. In 2005, exports supported 220,000 manufacturing jobs in Michigan. That same year, more than 200,000 Michigan workers were employed by foreign companies. Nationally, trade is equivalent to 12% of our gross domestic product, with exports supporting millions of good-paying American jobs.

 

Most workers and consumers benefit from trade. That's a fact. But we must recognize another reality--some workers are dislocated. They deserve our support. That's why Congress should reauthorize the Trade Adjustment Assistance program so that America's workers impacted by trade have access to the education and job training tools they need to return to work quickly.

 

Free trade is fundamentally about fairness. We have one of the most open markets in the world. Yet when we ship our products and services overseas, they are subject to high taxes known as tariffs. FTAs are the crowbar we can use to pry open those markets and eliminate those tariffs.
  
There's something else that would be a godsend to Michigan and the nation--a modern, refurbished infrastructure system. But by nearly every measure, Michigan's infrastructure is deteriorating. Thirty-eight percent of Michigan's major urban roads and 29% of its bridges are in poor or mediocre condition. The state is below the national average in broadband penetration. While energy demand is skyrocketing, Michigan hasn't built a new power plant in two decades.

 

Failing infrastructure could tremendously hamper the state's ability to conduct cross-border trade. It is already sapping productivity, polluting the environment, and costing lives.

 

These infrastructure failings are not limited to Michigan--the entire nation faces similar challenges, and they must be addressed. More money must be part of the solution, and it should come from three places: private investment, public-private partnerships, and consideration of an increase in the gasoline user tax fee, which hasn't been raised in 14 years. And the money must be spent wisely. The U.S. Chamber of Commerce is committing significant resources to building support for trade and infrastructure. Michigan is a perfect case study in how they can be the twin engines that help drive our economic growth and financial security for years to come.