Category Archives: Labor

Where will our jobs come from?

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As economists talk about the prospects for an economic recovery, they often mention that it may well be a “jobless recovery.”  Is anyone really surprised by that?  After all, in the interest of “globalization” we’ve exported most of our jobs to other nations.

When large corporations began selling the notion of globalization in the 1980s, they promised American workers access to new markets for American-made products in places like China and India.  The reality is much different.  Once so-called Fair Trade rules were established, American corporations began relocating manufacturing to nations with cheaper labor.  One American manufacturing industry after another was closed…steel, textiles, shoes, electronics, furniture, tools…the list is extensive.

Soon after, much of our agricultural production was exported to Mexico, Central and South America. 

We were told that none of this would harm the U.S.  In fact, the corporations and politicians said that this would benefit Americans with more diverse and lower-priced products.  Moreover, we could easily replace “dirty” low-paying manufacturing jobs with “cleaner” technology, service and information jobs. 

The next step was to move corporate call centers to Mexico, India and the Philippines.  (After all, that kind of work is much too mundane and boring for American workers.)   

Next, the corporations began hiring illegal immigrants for restaurant, landscaping, meat processing and construction jobs.  We were told that these were jobs Americans citizens were unwilling to do.  (The corporations neglected to mention that the real reason American citizens didn’t want these jobs were reduced salaries and benefits.)

More recently, corporations have exported the creation of software to India.  At the same time, they’ve requested special green cards for Indian engineers.  The corporations claim that too few Americans are as well-educated and trained. 

Even our military has gotten into the act by hiring mercenaries from other nations to provide security for American diplomats in Iraq and Afghanistan.

Is it any wonder that our health care system now represents 1/6th of our economy?  And we’re already hiring nurses and doctors from other nations to meet “shortages”.

So what will unemployed American citizens do?  The most promising opportunity is for the invention and manufacture of so-called green products such as wind turbines, photovoltaic solar panels and higher mileage vehicles…if politicians and corporations don’t export these jobs first.

Taking back our country.

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No, I didn’t suddenly become a pitchfork wielding right-wing lunatic.  I don’t own a handgun or an assault rifle.  And I have no doubts that President Obama was born in Hawaii.  But I do believe our nation is in jeopardy. 

However, we don’t need violence to address the issues.  All we need is legislation.  And it’s not even new legislation.  Just return the U.S. to the tax structure and regulations that existed in the U.S. prior to Ronald Reagan. 

Want to prevent another financial crash like the one that happened in 2008?  Simply eliminate the Gramm-Leach-Bliley Act of 1994.  That legislation, sponsored by a Republican-controlled Congress and signed into law by President Clinton, permitted bank holding companies to co-mingle financial institutions of deposit, investment and insurance which contributed to the collapse of our financial system last year.  You might also fire those in the Federal Reserve who failed to exercise the oversight that’s already within its power.

Want to eliminate the predatory tactics of the banks which issue credit cards?  Simply nationalize usury laws which limit interest rates in many states.  These laws were allowed to be circumvented in the 1980s by large bank holding companies. 

Want to reduce our national debt?  Simply return the highest marginal income tax to pre-Bush rates.   

Want to rebuild the nation’s failing infrastructure?  Return the highest marginal income tax to Eisenhower administration rates of the 1950s.  After all, that was the last era when our nation made significant investments in infrastructure.

Want to bring back manufacturing jobs and diminish unemployment?  Undo the relaxation of tariff laws that enabled “globalization” by our large corporations.  In reality, “globalization” is just another term for exporting jobs, undermining worker benefits and wages, increasing profits and avoiding corporate taxes.  (How many U.S. corporations have created a mailing address in the Bahamas or the Caymans to avoid U.S. taxes?)

Want to calm the angry rhetoric on radio and TV?  Reinstate the Fairness Doctrine which existed prior to 1987.  That doctrine, enforced by the FCC, required the holders of broadcast licenses to present controversial issues of public importance, and to do so in a manner that was honest, equitable and balanced.  (Wouldn’t you like to see Rush Limbaugh, Glenn Beck, Fox News Network and Focus on the Family try to justify their existence under those rules?)The point is most of the problems in this country aren’t new.  We’ve addressed them all before.  We can do it again.

The other side of Reaganomics:

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In a previous post, I stated my belief that Reaganomics was an utter failure.  That’s not entirely true.  It was a huge success for the wealthy.  It also successfully eroded the power of organized labor. 

When Reagan fired the striking air traffic controllers who were members of PATCO, I believe he inspired his followers to launch an attack on all labor unions.  Since that time, there has been a steady outsourcing of American manufacturing jobs to places like China, India, Indonesia and Mexico.   This has forced unions to make concessions with regard to wages and benefits.  The recent troubles of GM and Chrysler are good cases in point. 

During the debate over auto industry bail-outs, the discussion seemed to revolve around the wages and benefits of United Auto Workers.  Never mind the decades of questionable decisions by the company executives, along with their inflated salaries.  In the minds of many, the real problem is that UAW workers were paid more than their counterparts at Honda, Toyota, Nissan and other import brands.  The claims were that while the workers for foreign brands were paid approximately $45/hr, UAW workers were paid $70/hr or more.  Outrageous!  Right? 

Well, hold on a moment.  My UAW friends tell me that the figure of $70/hr not only included wages and benefits such as health care.  It also included the cost of benefits for recent retirees, plus all costs associated with workers – overtime costs, Social Security, Medicare, etc.  It even includes the cost of tools used by the workers!  Take away all of those costs and the actual average hourly wage was $29.78. 

But it’s not just lower wages the Reaganites are after.   What they really want to do is to rid corporations of the obligation for health and retirement benefits.  And what better way to accomplish than to crush organized labor? 

It took a couple of wars, the Great Depression and many bloody management/labor clashes for conditions to improve for American workers.  I fear that Reaganomics combined with globalization and the greed of CEOs may be leading us back to labor conditions similar to those under the robber Barons of the early 1900s when work was more like servitude.