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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsMurdering manufacturing ‘strictly business’
http://www.thestand.org/2016/02/murdering-u-s-manufacturing-strictly-business/In the week before Valentines Day, United Technologies expressed its love for its devoted Indiana employees, workers whose labor had kept the corporation profitable, by informing 2,100 of them at two facilities that it was shipping their factories, their jobs, their communities resources to Mexico.carrier-exports-jobs-free-trade_frontA few workers shouted obscenities at the corporate official. Some walked out. Others openly wept as United Technologies shattered their hopes, their dreams, their means to pay middle-class mortgages.
Three days later, 1,336 workers at Philadelphias largest remaining manufacturer, Cardone, learned that company planned to throw them out too and build brake calipers in Mexico instead.
Two weeks earlier, a Grand Rapids, Mich., company called Dematic did the same thing to its 300 workers.
No surprise. In the first decade of this century, America lost 56,190 factories, 15 a day.Republican presidential candidates talk incessantly of building a physical wall to keep impoverished Mexican immigrants out of America. What they fail to offer is an economic barrier to prevent the likes of United Technologies and Cardone and Dematic from impoverishing American workers by exporting their jobs to Mexico.
Ilsa
(61,695 posts)on the radio for years. It's part of the plan to destroy the middle class and promote the rich getting richer.
CBGLuthier
(12,723 posts)Do you feel their pain?
pampango
(24,692 posts)does not seem to have slowed them down one bit. I doubt that killing NAFTA would have slowed Mexico down either since it is a whole lot closer to us than China is.
Ed Suspicious
(8,879 posts)This is a result of corporate influence on trade policy. This corporate influence directly led to the diminished power of organized labor. Nearly all trade policy is set to benefit corporations with just enough help for the people to quell the riots. The less power we have as workers, the more brutal the trade policies will become.
Dustlawyer
(10,495 posts)OWS scared them, caught them off guard, so they bulked up the cops. They made plans to stop any political demonstrations, even peaceful ones!
pampango
(24,692 posts)5 chapters on trade, tariffs, etc.) and more about non-trade issues. (Tariffs are already quite low anyway.) It deals with labor and environmental standards but not in a way that is adequately enforceable - 'national sovereignty' is a tough concept to square with international enforcement of such standards.
Certainly true. However trade (even 'free trade' is you count the WTO-governed trade) does not diminish the power of labor as evidenced in many progressive countries that trade much more than we do, yet have much stronger unions. The 'diminished power of organized labor' is more of a self-inflicted wound with Taft-Hartley and its 'right-to-work' provisions that liberal countries do not impose on their workers.
As true now as it was in the 1920's when republicans delivered high tariffs to their corporate backers who wanted to eliminate foreign competition in the US market. FDR and Truman eventually reversed that but the belief in the 'magic' of tariffs never seems to die, as the Donald proves again in 2016.
Agreed. That may be why the best trade policy (FDR's ITO) was proposed in the mid-1940's when labor was very strong.
Punx
(446 posts)Which essentially lowered duties and tariffs on Chinese goods.
Originally granted around 1980, it was renewed in 1994 and again in 1996 by the Clinton administration. And made permanent by the Bush administration in late 2001.
https://library.cqpress.com/cqalmanac/document.php?id=cqal96-1092700
http://tech.mit.edu/V114/N27/china.27w.html
All in all, a "Fools Errand" in my opinion.
pampango
(24,692 posts)Conditions
These changes were difficult steps for China and conflicted with its prior economic strategy. Accession meant that China would engage in global competition according to rules that it did not make. China's admission was "an enormous multilateral achievement" that marked a clear commitment towards multilateralism.
When China joined the WTO, it agreed to considerably harsher conditions than other developing countries. After China joined the World Trade Organization (WTO), the service sector was considerably liberalized and foreign investment was allowed; restrictions on retail, wholesale and distribution ended. Banking, financial services, insurance and telecommunications were also opened up to foreign investment. Furthermore, China had to deal with certain concerns linked to transparency and intellectual property that the accession to WTO underlined.
https://en.wikipedia.org/wiki/China_and_the_World_Trade_Organization
Keeping the biggest country in the world out of the WTO, even when it agreed to the rules of the organization, kind of defeats the purpose of having an international organization to govern trade unless one thinks it would function better for us if it were restricted to rich, developed countries.
Even if the world had not let China into the WTO, the rise of its economy and trade may have not been diminished. Russia did not join the WTO until 2012 and our trade balance percentages deteriorated more with it (while outside the WTO) from 2001 to 2012 than it did with China (inside the WTO). Who knows what China's economy and trade would have done if it was kept outside the WTO, but it not a forgone conclusion that it would be as poor as it was under Mao when it was a non-factor in the world economy.
tk2kewl
(18,133 posts)I ran a software development team for a subsidiary of Wells Fargo. We were based in NYC. Just a week after 9/11 I was told to we would be off shoring our work to an Indian firm that the CTO had a stake in and that my guys would be out of a job. I bought them some time and then we all left.
whereisjustice
(2,941 posts)and raking in the cash from Wall Street. Yeah, its fair to call it blood money given the devastation to communities and families, health problems, blight, poverty, etc.
We have two political parties that are strip mining the middle class to line their own pockets.
Cobalt Violet
(9,905 posts)Did even see it coming. I'm glad to see the people finally trying to hold them accountable. I was discouraged that it didn't happen 30 years ago but it looks like it had to take down the entire middle class to get the ball rolling. It's going to be a long, hard fight but it's going to happen.
Trust Buster
(7,299 posts)Third World labor ?
Ed Suspicious
(8,879 posts)"free trade" is dealt with by our government in a far more humane way. We aren't slaves to some unstoppable invisible hand. We allow our government to create the rules for trade. We can demand they do a better job at it.
freebrew
(1,917 posts)The company that fired me was getting $$$ for training 'new' employees, $$$ for holding meetings to discuss
such things as safety, sexual harassment and any and everything HR could find(there seemed to be a LOT) that
the company could get $$$ for doing. It cuts production and makes the workers look bad, so 'they' can justify outsourcing.
pampango
(24,692 posts)One: we unilaterally impose tariffs on countries with poor people ("cheap Third World labor" . That's what republicans did for 12 years before FDR eventually switched us to the 'multilateral agreement approach'. Trump says he will do it against Mexico and China to begin with. There would probably be more added to that list as time went on. That would also have the effect of getting us out of NAFTA and the WTO.
Two: we negotiate liberal multilateral agreements that prioritize and enforce high labor and environmental standards and business regulation (as FDR tried this with the ITO - rejected by republicans - and the EU implements today). Low-wage countries would still have some advantage but less so with strong unions and strict environmental standards and their advantage would diminish over time with their economic gains being shared with workers rather than skimmed off by their elites keeping their workers poor indefinitely.
The unilateral approach is 'easier'. The US is strong enough that no one can stop us from doing it if we want to. Politically, it is 'easier' since it has bipartisan support - thanks to Trump and the tea party. The results may be unpredictable - hopefully better than the last time it was tried in the 1920's - but it would not be unusual for people to believe that "it will be different this time".
Fuddnik
(8,846 posts)Nuclear submarines, fighter jets, ......
Tell them they lose those contracts if they offshore jobs. Trash the free trade agreements, and institute PUNITIVE tariffs on goods manufactured by offshored companies, and add protective tariffs on imports.
Ed Suspicious
(8,879 posts)American workers so the decision makers can make more money hiring cheaper workers in a largely unregulated country. These decision makers are saying directly that the goods work done together to make the company great takes a back seat to the decision maker's greed. We aren't just shipping jobs over seas, we are firing the very people who built the company, robbing them of not just their livelihood, but often their dignity and their sense of identity. What a brutal fucking practice this is.
Trust Buster
(7,299 posts)Restricting trade and strong language won't prohibit an American Corporations from outsourcing jobs to cheap Third World labor markets.
freebrew
(1,917 posts)enough to make up for the difference in cost into a fund for the displaced workers.
Recursion
(56,582 posts)I don't see how that would discourage a manufacturer
daleo
(21,317 posts)That's what tariffs do.
Recursion
(56,582 posts)Take away the price advantage and they still have a cost advantage because the customer, rather than them, pays the tariff. They don't need to increase sales; even just lowering input costs is an advantage to them at the same price level.
daleo
(21,317 posts)Then the price of the U.S. product will be the same as for the imported product. Thus, the imported product company will have no competitive advantage in the marketplace for that particular good. If there is no final price advantage, the company then has no reason to offshore production. Indeed, the complications of offshoring would become disadvantages.
Recursion
(56,582 posts)Right, let's take that as the simplest case (obviously things can get more complicated)..
Thus, the imported product company will have no competitive advantage in the marketplace for that particular good. If there is no final price advantage, the company then has no reason to offshore production.
Wrong.
Let's take a shirt that for simplicity's sake takes $5 in labor to make and sells for $7.
If the company moves production to Bangladesh, it now takes $2 in labor to make, and without the tariffs sells for $4.
Put in the tariffs, and it takes $2 in labor to make, has a $3 tariff, and so still sells for $7.
Now, look at those numbers: you can make $2 off of $5 in the US, or $2 off of $2 in Bangladesh.
The incentive is still there, the consumer just pays more for shirts.
freebrew
(1,917 posts)they would have to pay the outside mfgr for the goods, and basically pay the old workers
the difference.
Would never happen, but I could dream...
It's what I would do, but that's just me.
erlewyne
(1,115 posts)The oldest graduates from HS in a coupla months.
They have a bleak future.
Bernie won't be enough, but he is our only chance.
He will need our help in the future.
PotatoChip
(3,186 posts)any and all TIFs they (very likely) have been given over the years.
Cleita
(75,480 posts)For too long, we were expected to step back and allow business to do what it will at our expense and for their profit. Time to change the narrative, IMHO.
TexasMommaWithAHat
(3,212 posts)Too easy to misunderstand, I suppose.
Octafish
(55,745 posts)Here in Detroit, where unions and the middle class both got really big, we understand how important these things called "manufacturing jobs" are. It's how the economy got healthy and the nation strong so we could beat the Depression and the fascists and the commies. While we fought over who got what piece of the action, we never thought the owners would sell us out, though.
It is murder.