During lunch recently, I mentioned that the coronavirus would end up confirming two things and giving President Trump a huge opportunity to help “blue cities.”
My three points were these:
1) Border security matters. It’s important to know who is coming into your country;
2) Cheap labor may end up being more expensive in the long run; and
3) It’s time for President Trump to offer companies to develop our inner cities with new manufacturing that employs thousands.
I found this article about China by Kenneth Rapoza very timely:
The most frightening aspect of this crisis is not the short-term economic damage it is causing, but the potential long-lasting disruption to supply chains, Shehzad H. Qazi, the managing director of China Beige Book, wrote in Barron’s on Friday.Chinese auto manufacturers and chemical plants have reported more closures than other sectors, Qazi wrote. IT workers have not returned to most firms as of last week. Shipping and logistics companies have reported higher closure rates than the national average. “The ripple effects of this severe disruption will be felt through the global auto parts, electronics, and pharmaceutical supply chains for months to come,” he wrote.
For years, we warned that moving everything to China would devataste U.S. cities and manufacturing.
What we did not realize is that China’s lack of transparency would end up destroying them.
Speaking of the future, let’s bring back a Jack Kemp idea about “enterprise zones” — urban areas that could use investment.
For some reason, the idea never took off. However, enterprise zones may just be the solution to help our cities and bring back jobs.
President Trump should call on Congress to pass the Kemp Act and offer all companies affected by the coronavirus crisis a way back here.
P.S. You can listen to my show (Canto Talk) and follow me on Twitter.
