NCPA - National Center for Policy Analysis

Stemming Manufacturing Job Loss

September 9, 2003

Arguments blaming China for job losses in American manufacturing are unpersuasive and divert attention from policies that would actually help U.S. workers, says former presidential adviser Glenn Hubbard, now at Columbia University.

Instead, Hubbard recommends the following:

  • Enact the President's proposal for Personal Re-employment Accounts, which would provide substantial funds to unemployed workers to defray costs of training or finding a new job.
  • Use tax subsidies to encourage private health insurance -- a pilot for which was enacted in the recent Trade Adjustment Assistance Act -- offers support for individuals adversely affected by trade dislocations.
  • Repeal the steel tariffs -- which the administration can do after the upcoming International Trade Commission review next month -- which would provide a boost (three manufacturing jobs were lost for each one protected in the steel industry).

While these steps are not as powerful as the positive effects of tax cuts in the pipeline, says Hubbard, they are constructive.

Source: Glenn Hubbard, "Don't Blame the Yaun," Wall Street Journal, September 9, 2003.

For text (WSJ subscription required),,SB106306709558475700,00.html


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