Make It In America

No Fluke: Republicans Support Off-Shoring Jobs

Leo Gerard — Thu, 30 Sep 2010 11:33:12 -0400

Like the clear results on a pH test strip, the vote in the U.S. Senate this week on the Creating American Jobs and Ending Off-Shoring Act showed Republicans’ true color: Red. Red for China.

Or Mexico. Or Indonesia. Or anywhere multi-national corporations get tax breaks for exporting American jobs. In this test of loyalty, every Republican in the Senate voted for corporate greed over American workers.

No fluke, this is a GOP pattern. The red party has consistently sided with giant corporations to the detriment of the American economy and American workers. In voting against health care reform, Republicans chose giant health insurance corporations over uninsured Americans. In opposing financial reform, Republicans embraced Wall Street over the taxpayers who bailed out the big banks and don’t want to do it again.

Republicans vainly attempted to rationalize those votes as opposing government regulation. There’s no regulation issue in the Creating American Jobs and Ending Off-Shoring Act.

That Act would have removed tax incentives the U.S. government gives corporations to close domestic factories, fire American workers and move production overseas. And, conversely, the Act would have instituted tax cuts for corporations that return foreign employment to U.S. soil.

Every Republican in the Senate voted against the Act. They voted to continue forcing Americans to give tax breaks to corporations that ship jobs overseas during the worst recession since the Great Depression. The GOP said it is right and proper for U.S. citizens to subsidize corporate killing of American manufacturing. And Republicans said it would be wrong to do the opposite -- to use tax breaks to encourage corporations to restore off-shored jobs to the U.S.

Democrats, whose first priority is American workers, are pushing a 17-bill Make it in America plan. The Creating American Jobs and Ending Off-Shoring Act is part of that effort to bolster domestic industry and employment.

With joblessness stuck at 9.6 percent and with the U.S. trade deficit destroying or displacing 5.6 million jobs -- 70 percent of them good-paying manufacturing jobs -- in just one year – 2007, Democrats developed this plan to preserve American industry and jobs. Recent surveys of likely voters suggest the Democrats’ Make it in American program is exactly what Americans want and believe the country needs.

In a Wall Street Journal/NBC News poll released earlier this week, 86 percent of respondents cited corporate off-shoring of American jobs as the primary cause of the country's continuing economic distress.

Similarly, a bi-partisan polling team that conducted a survey of likely voters for the Alliance for American Manufacturing in April found large majorities believe manufacturing strength is crucial to U.S. economic security and that the government should fortify American industry. These voters told the pollsters that they believe America no longer leads the world in manufacturing but could again with proper support.

That can-do-it attitude is realistic. Already some manufacturers are on-shoring. General Electric is moving production of its energy-efficient water heaters from China to the United States. Caterpillar and NCR, a technology company, are doing the same. A survey in June found 21 percent of North American manufacturers brought production into or closer to the United States in the previous three months and another 38 percent planned to research such a move.

Manufacturers gave USA Today numerous reasons for this repatriation. Chinese wages and shipping costs have risen. They cited poor quality foreign manufactured goods; theft of intellectual property; long product delivery times interfering with response to consumer demand, and benefits from providing engineers easy access to assembly lines.

The trade publication, Supply Chain Digest, quoted two experts in an August story about the on-shoring trend:

“George Stalk, a consultant at Boston Consulting Group, has led research efforts showing the inventory benefits for high margin, fashion-oriented goods from bringing production at least back to North America almost always trump the value of lower manufacturing costs in Asia. Those benefits come from both not losing sales from being out of stock and not getting stuck with obsolete inventory that a company can’t sell or must mark down dramatically.”

And, the story quoted Jeremy Leonard, a consultant for Manufacturers Alliance/MAPI:

“A lot of companies who have gone there to take advantage of cheap labor are starting to tell us that if you (calculate) total cost and don't just look at wages, it's actually not worth it."

Democrats sought to nurture and expand the repatriation trend. But like numerous Make it in America bills passed by the U.S. House, the Creating American Jobs and Ending Off-Shoring Act died at the hands of Senate Republicans. Democrats had the majority with 53 votes for the measure, but Republicans, as they have all year, blocked passage by using a filibuster to require a super-majority of 60.

The next test for Republicans will occur Nov. 2. In the mid-term election, Americans red-in-the-face angry at the GOP for extending tax breaks to corporations for expatriating American jobs have the opportunity to show Republican politicians what it feels like to lose a job.

Bravo To Congress' Making It In America Push -- What It Still Needs

Dave Johnson — Wed, 28 Jul 2010 15:04:04 -0400

House leaders deserve praise for fighting for working people by launching a "Make It In America" initiative which they officially unveiled today. The country still badly needs an immediate job-creation effort, but this is a very important longer-term initiative for reviving America's manufacturing base and restoring our competitiveness in the world economy. Good work!

Manufacturing is the core of our country's income. Making things that we sell is how we earn money to buy things that others make. This is why it is so important to restore America's manufacturing base and the infrastructure that supports it. People want to go into a store and have a choice to buy things that are made here.

This week these important bills made it to the House floor: (click through for details)

National Manufacturing Strategy Act

Clean Energy Technology Manufacturing and Export Assistance Act

End the Trade Deficit Act

As the Congress rolls out this initiative here are important components it should include:

Buy American

Public money should be going to our people. This is what other countries, like China, are doing with domestic preferences and "indigenous innovation" policies.

Pass "Made in America" policies in every phase of any manufacturing plan, boosting domestic content requirements in federal procurement, (state and local government should do the same with their procurement policies).

Trade policies

(Is "trade" even the right word for making the same things in other countries that we used to make here.)

We are doing very little to combat the mercantilist nations, in particular China and Germany. China manipulates its currency and will not match its exports with imports. Germany is limiting domestic consumption -- the resulting trade surplus is out of balance.

End tax incentives to move production overseas; create incentives to keep production at home. Current laws allow corporations to defer taxes on income earned overseas, which almost forces companies to develop schemes to make goods outside the country.

Require tariffs on goods from countries that manipulate currency, to overcome the pricing advantage this creates.

What about a "democracy tariff?" This is a tariff on imports to counter the advantages that come from moving factories to countries where the people don't have the power or opportunity to insist on fair wages and worker and environmental protections.

Encourage the "Green Economy"

Stimulate American manufacture of wind turbines, solar panels, biofuels, etc. This creates jobs and makes us competitive in the new green economy that will replace the carbon economy.

Create a domestic non-carbon energy market with a strong Renewable Energy Standard (RES) and a direct carbon tax (since the Senate has blocked cap-and-trade).

Use government procurement to help trigger this market. Phase in purchases of non-carbon energy, creating a strong market, triggering increased investment. Procurement should require American-made components. For example, wind-power purchases should require American-made turbines are used.

Infrastructure

Our roads, bridges, rail, water and electrical systems, etc. are the backbone of a competitive economy. The infrastructure enables business to thrive. If it is not kept in good working order and up-to-date (and it has not been), businesses do not thrive (and they aren't).

We need the Congress to create a National Infrastructure Investment Bank, capitalized with public money to lure private capital for investment in rebuilding key components of America's infrastructure. Stop the obstruction - we need this!

Rebuild existing, crumbling infrastructure. This "spending" investment earns the money back many times over.

Pass the surface transportation reauthorization bill. This will boost American industry as while creating jobs, saving energy and incentivizing green development.

Build new infrastructure-for-the-future like high-speed internet and high-speed rail and a national electric "smart grid".

Require companies to make the infrastructure components in America.

This is a brief outline of some of the needed components in a Make It In America strategy. These are things that Congress can do. Congress must not back away from bold reforms in the face of resistance from the right-wing monopolist business lobbyists, who speak for the job exporters, and their "free-trade ideologue" allies.