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With historic unemployment, some propose reshoring incentives to help bring jobs to US

With historic unemployment, some propose reshoring incentives to help bring jobs to US
Posted at 4:16 PM, Jun 25, 2020
and last updated 2020-06-25 16:16:41-04

WASHINGTON, D.C. – Since the start of his presidency, President Donald Trump and his administration have talked about getting manufacturing companies to come back to the United States, a process known as reshoring.

Now, with unemployment at a historic high, another 1.5 million people filing jobless claims last week and still 19.5 million continued claims or people unemployed, the idea of reshoring is being revisited by Congress.

Some on Capitol Hill are proposing reshoring incentives for companies in the next stimulus package.

“There are a lot of potential ways that the administration and Congress could come up with tax subsidies and tax breaks for companies that produces here,” said Ed Yardeni, an economist and the president of Yardeni Research.

While believes there could be some jobs created by companies reshoring in the U.S., it’s hard to say how many. That’s partly because, many companies that would consider reshoring would also consider using artificial intelligence at their production plants.

“Clearly bringing back jobs would be great, but I don’t think we go back to the 70s and 80s, where we had a lot more people employed,” Yardeni added. “I would think that if you are reshoring and bring production back to the U.S., you are going to use state of the art technology to do that, so I’m not sure it is going to be a huge win-win in terms of jobs.”

Experts, including Yardeni, believe companies that would most likely consider reshoring would be those in the pharmaceutical and technology sector. Their reason for the move is likely less for job creation and more because of national security concerns.

Either way, the way to get more jobs out of reshoring may be by doing more than just incentivizing companies to come back to the U.S.

“Maybe what we need is to combine reshoring with really focusing on reeducating a lot of the labor force so that they can manage the robots, build the robots, program the robots, as opposed to doing the job the robots are doing,” said Yardeni.

Reopening Ohio
Gov. Mike DeWine and the State of Ohio have established a plan to begin reopening Ohio businesses starting May 1. Below is a timeline of the businesses allowed to reopen.

May 1: Medical care – non-essential surgeries and procedures that do not require an overnight stay will be allowed beginning May 1.
May 4: Manufacturing, distribution and construction businesses that were ordered to cease activities may reopen on May 4, as well as general office environments.
May 12: Retail establishments and facilities will be allowed to reopen on May 12.
May 15: Salons, barbershops, day spas, tanning facilities, massage parlors, tattoo parlors and piercing businesses. Restaurants will be allowed to serve patrons on outdoor patios. More details here.
May 21: Restaurants and bars will be allowed to reopen for dine-in service. Read more here. Campgrounds will be allowed to reopen. Read more here.
May 22: Horse racing will be allowed to resume, with no spectators. Casinos and Racinos are not included in the reopening. Read more here.
May 26: Gyms, fitness centers, regulated pools, recreation centers and studios will be allowed to reopen, with new requirements. Non-contact and limited-contact sports leagues, such as golf, baseball and tennis will be allowed to resume. BMVs across Ohio will reopen, but government officials encourage citizens to utilize the BMVs online services when possible. Read more here.
May 31: Day care centers will be able to reopen in Ohio. Read more about the plan to reopen day cares here. Day camps and summer camps will also be allowed to operate. Details on that here.

While these announced reopenings encompass the majority of the businesses, agencies and events closed and canceled by the state's orders, the governor has not yet made an annoucements on when K-12 schools in the state will reopen, nor when places of public amusement, such as theme parks, gambling businesses, skating rinks, movie theaters, and others will be allowed to reopen. See a full list of indoor and outdoor places that remain closed here.

Click here for more details on the state's "Responsible RestartOhio" plan.