TMD 402H - Globalization in the Textile and Apparel Complex

The American Textile Industry

George Shuster, President, Cranston Print Works

Summary by Jennifer Kane

Only two speakers have presented in our seminar class, but a major question has already surfaced—“Free traders or free traitors?”  Last Wednesday, George Shuster, President of Cranston Print Works, spoke against free trade.  He feels that free trade is not a fair give and take.  In other words, our system allows imports to far exceed our exports, causing a trade deficit of $40 billion per year and loss of jobs in the United States. 

To start the seminar off, George listed four questions to discuss the deficit problem, beginning with “is it a problem?”  From our fist lecture with Art Mead, I would have answered no.  However, George Shuster made me reconsider somewhat.  (Although, I do strongly believe this debate could be everlasting!)  Losing ownership of American companies to overseas investors has been increasing dramatically over the years.  Dunkin Dounuts, Burger King and Pepsi Cola are just a few names that have traveled abroad.  How much more American can you get?  As companies go international, so do the labor intensive jobs.  If we rely increasingly on imported products, then we lose out on job opportunities for the United States citizens. So yes, obviously this is a problem. 

The next question was: “how did we get into this?”  Shuster suggested three possibilities of groups who he thinks have “hijacked” our trade policies: retailers, multinationals and importers. China just recently joined the World Trade Organization (WTO).  This will be a huge benefit for them since they can export to countries like the U.S. who just buy, buy and buy.  Other countries like Indonesia and India have an outstanding export track record to the United States while we are on the opposite side of the spectrum.  India's trade ratio with the U.S. is 120 to 1. American multinational companies move production overseas and then it eventually comes back to us at a lower cost.  At least we are deceived to think so.  This leads us to an important question, “why these groups did this to America?”  It is simply because their agenda is to make a profit.  Meanwhile, America grows deeper and deeper in debt.  The trade deficit is rapidly increasing and we as a country are tricked into suffering with an overall decrease in the job market.

The remaining question is  “how do we get out of this problem?”  George Shuster, also a trade advisor to the United States Government, suggests that the American people make noise and be educated to this happening.  A group labeled UNITE, (Union of Needletrades Industrial and Textile Employees) informs the public on unfair trade policies that have hurt manufacturing in America.

So, “free traders or free traitors?”  As I have experienced the perception of both Art Mead and George Shuster, I debate this question.  Both speakers made an impression and had valid points.  When I took a break from writing this paper, I happened to click onto Hardball with Chris Mathews.  The discussion was about the possible drilling in Alaska for oil since conflict has arisen with Saudi Arabia and the Middle East.  The U.S. does have scarce resources and we are a country who thrives on oil.  Alaska won’t be enough, especially if we do get our imported oil supply cut off.  We do need some imports.

However, we do need oil supply and we do need to reconsider taking more pride in American-made products.  A common balance would be ideal, but some situations are too unpredictable even for economists. 

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