Guest commentary by Bob Pugh, candidate for the Republican nomination for Coles District Supervisor.
A surprising, but welcome new phenomenon is being seen here and there; only a little at first but hopefully something that will grow. It is insourcing of jobs and bringing them back to America. This article on CNN’s website today cites some of the examples.
I attended the CFA Institute’s Annual Meeting in Edinburgh, Scotland last month where we heard from investing and economic experts from around the world. Several mentioned investment in and relocation of jobs to the United States.
At least four reasons explain the slowdown of outsourcing and some jobs coming back to the United States.
The exchange rate of the dollar has been tanking. A low value of the dollar makes importing goods more expensive, and raises the cost of outsourcing jobs to other countries with now-higher exchange rates.
Production costs are rising in emerging market nations. As labor and other production costs rise in nations like China and India as their economies develop, along with a weakening U.S. dollar, the attractiveness of outsourcing jobs diminishes further.
U.S. trade deficits have left trillions of dollars in foreigners’ hands. When Americans import more than they export, the excess dollars are left abroad to be invested somehow. A great deal, or most, of that investment has been going into U.S. Treasury bonds.
U.S. Treasury bonds are an increasingly risky asset, however, as the U.S. appears unable to get its fiscal house in order and to be following Greece along the same financial path that nation chose. If you were a foreign investor with lots of U.S. dollars to spend, which would you prefer to own over the long run – U.S. Treasury bonds or a profitable business operating in the U.S.?
This emerging trend is of great importance to Prince William County. Our Department of Economic Development has been working hard to help attract good employers to Prince William County but can’t keep pace with the deluge of residential construction, any more than the school system can build enough new schools to avoid overcrowding or adequate roads can be built to alleviate congestion.
I’m running against Marty Nohe for the Republican nomination for Coles District Supervisor because Mr. Nohe, backed by tens of thousands of dollars in campaign contributions mostly from development interests and more campaign money from Fairfax County than from Prince William County, is working hard to keep Prince William County as Northern Virginia’s bedroom while these new jobs go to Fairfax County and elsewhere.
The Washington Council of Government’s own “Region Forward” plan, which Mr. Nohe Marty helped create, envisions the targeted employment centers in Prince William County as having only 2 percent of the region’s total employment by the year 2030.
We can do much better as a community than continue to build row-after-row of townhouses and villages of McMansions, which are virtually always tax-revenue negative. Someone needs to say “no” to the residential development industry backing Mr. Nohe and “yes” to attracting good jobs and employers that reduce the burdens on our taxpayers, alleviate congestion on our roads, and improve the quality of life in our community. New economic opportunities are emerging that would benefit Prince William County residents and taxpayers tremendously, but we need leadership on the Board of Supervisors that will change our present course of economic development.
For more information, please visit my website, www.bobforsupervisor.org.
The opinions expressed here are solely the views of the author, and not representative of the position of any organization, political party, doughnut shop, knitting guild, or waste recycling facility, but may be correctly attributed to the Vast Right-Wing Conspiracy. If anything in the above article has offended you, please click here to receive an immediate apology.
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