Up in Smoke
Altria (MO) announced it was going to close a cigarette manufacturing plant in North Carolina and about 2,500 jobs will likely be up in smoke. Will protectionists who complain about the loss of manufacturing jobs have anything to say? We hear about the need for quotas and tariffs or Yuan and Yen currency appreciation to save auto jobs or textile jobs or whatever industry group can be swayed by the incorrect promise that protectionism will keep them employed or create new opportunities. So I wonder if there will be any sympathy for tobacco employees? Typically the group that is most active in protectionism is also critical of tobacco companies and their political influence. I am concerned about all manufacturing job loss in the US, not just industries that fit a political agenda. And yet, I am supportive of the business decisions for Phillip Morris to segregate their domestic and international production. As for the concept of reduced smoking and a healthier America - that would be great. I worry about the North Carolina tobacco workers as I suspect that replacement jobs may not be so plentiful and the wage/benefits packages might be tough to beat. We lose manufacturing jobs in this country for many reasons and protectionist policies do not solve any of them. The political abuse of economic loss to win votes can only be fought by pointing out the hypocrisy inherent in these efforts. If Smith & Wesson (SWHC) or Sturm Ruger (RGR) cut a bunch of jobs like Altria, would the politicians have the courage to support them? Manufacturing job loss is not a political opportunity whether the industry supports the party or conflicts with the platform.

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