Last night the C-Span viewers were treated to a
rerun of the John Snow, Treasury Secretary; Don
Evans, Commerce Secretary; and Elaine Chao, Labor
Secretary bus tour to promote President Bush's
‘Jobs and Growth Economic Plan’. It was a treat
indeed because C-Span rarely provides programs
that are pure entertainment. There were so many
fun moments that I could write pages, but I
won't. I'll just stick to the highlights.
It is helpful to know that manufacturing
represents only about 13% of our economy and we
are losing more of it every year. Some economists
estimate that there will be no manufacturing in
the US by 2015 if the current rates of exodus
continue.
First stop on the trip for Larry, Curly and Moe
was in Wauwatosa, WI. Why there? That is where
the Harley-Davidson Company is located.
Harley-Davidson is one of the few - maybe the only
at this point - All American companies with an All
American loyal customer base. Harley is unique
among the manufacturers today. If they had gone
to just about any other manufacturing company in
the US, they would have had to answer questions
like, Why is this factory being closed and sent to
Mexico or China? Where am I supposed to get a job
now?
The trio really only answered questions at the
Harley plant. The rest of the trip was basically
the arrivals and departures. One reporter asked
John Snow if this wasn't just a 'feel good' trip.
No, he insisted, it was a 'Dialogue Tour'. That's
funny, there were no stops at an unemployment
office to dialogue with the jobless. There were
jobless demonstrators conveniently located across
the street that REALLY wanted some dialogue but
all they got was the image of the backsides of the
stooges as they were running away.
Harley was prepared for the visit. Their
employees and suppliers were there to ask
questions - and they were good questions.
To Elaine Chao - regarding the new overtime
rules. The Harley employee: the overtime rules
cause the employer to hire more employees rather
than over working the employees they have. The
comp time rules work at the employer's
discretion. So how are your proposed rule changes
going to help workers? Her response - Oh - these
rules are simply status changes and ONLY affect
white collar workers. They are intended to
'protect' low wage workers. [Since when did white
collar workers become low wage workers?]. I found
it very interesting that her example of a low wage
worker was somebody making $8,000 a year. I
calculated this out and a person would have to be
making an hourly wage of about $4.15 an hour to
have an annual income of $8,000. Did Secretary
Chao slip up and reveal the next 'worker
protection' proposal? A drop in the minimum wage
to put more people to work?
To Don Evans - This question was asked by a Harley
supplier. He states that trading for US
manufacturers is unfair. Our markets are totally
open, but the markets of all other countries that
we trade with have trade barriers that protect
their markets. The response by Don Evans was
classic. "We are beginning to start to look at
monitoring the situation".
To Snow - This question was asked by another
Harley supplier. Large OEM (original equipment
manufacturers) are pressuring the small ones to
move offshore (to China). He told Snow, "we need
fair trade - not free trade". Snow's response was
rather confusing - but he said that China is using
the currency that they have from the trade surplus
(about $130 billion dollars a year) to buy US
securities rather than on domestic spending for
the people of China. This sounds to me like China
has basically bought our large manufacturers and
they are trying to either get the small
manufacturers to move voluntarily or they will put
them out of business. I could be wrong on that,
that is just my understanding - but it does seem
to fit what is occurring.
Next question - This question was asked by another
Harley supplier. I think that Don Evans responded
to it, but I I'm not sure. The supplier states
that we have a $500 billion trade deficit, $130
billion of that to China. Our exports to China
are only raw materials. China does not buy any
'value added' goods - meaning manufactured goods.
How is this helping jobs and growth? Good
question I'd say. The answer that I have in my
notes is that the tax cut will stimulate the
economy - when people spend, it ripples through
the economy. Hmmm… in my simplistic little way of
thinking, I don't see any new jobs there. I see an
exacerbation of the problem, but no new jobs. Don
Evans wrapped up this discussion by saying, “the
President is 'very concerned about jobs'. He
wants to make sure that everybody that wants a job
can have a job”. I had to leave the room at this
point due to overwhelming nausea.
To Elaine Chao - from another Harley employee. He
said that he is doing ok because he is working,
but a lot of his friends have been layed off and
don't have jobs. His questions - What kind of jobs
are you creating? Her response - something about
the military return to work laws - totally a non
sequitur. Then she said "the question really
should be, how do we find them? [indeed]. Then
she said that last year 49 million people lost
their jobs but 50 million people found jobs. This
response was extremely interesting but it would
take some major research to adequately cover it.
At that point, with a kind of panicky look on her
face, she says "aren't we about done here -
shouldn't we be wrapping up now?" It was too
funny. Unspoken, "Help me for God's sake... I
have no answer for this question - GET ME OUTTA
HERE".
Just a couple more highlights: They talked to
people on the manufacturing floors. These people
according to Don Evans were really happy. They
just wanted to thank the President for their tax
cuts. Why wouldn't they be happy? They have a
job.
According to John Snow, joblessness is due to
productivity. Hmmm.. we are so productive that
manufacturers are moving to Mexico and China to
escape from all that productivity. Does anybody
see a disconnect here?
According to Elaine Chao - We have a skills gap in
this country. Hmmmm again I say. Our country
spends BILLIONS of dollars on training and
education. In what area do we have a skills gap?
Oh yeah, I know. Living in poverty. That's what
we need to learn - how to live in poverty because
the Congress and the President are allowing the
job market for American Citizens to be destroyed.
In the process, they are destroying the tax base.
They are supposed to be Americans working for the
American People - but I sure as hell don't see any
signs of that.
When they got to Wausau, they visited Culver's
Frozen Custard Restaurant. This is where the
stooges got to informally mingle with the serfs.
Elaine Chao held center stage at this 'event'.
She sat at a table with an average American
family. My heart was warmed. Then it got
interesting. I know we've all had this experience
in which we've just met somebody and they segway
into a topic area that sets off the alarms - Uh
Oh, this person is a salesman and they aren't just
making small talk. Those alarms were set off when
Elaine Chao asked if anybody had seen the movie
"Sea Biscuit". This movie is about a nearly broke
millionaire, an old broken down nag and an
overweight, blind jockey. Together they overcome
all the odds to win the Triple Crown. This is a
rather transparent metaphor for the US economy.
It's funny because just the other day, a couple of
us on the forum were talking about the
government's use of propaganda films in times of
trouble. They are used to focus the mindset of
people in such a way that they don't realize they
are being manipulated. Sea Biscuit is a prime
example of that type of film.
The fraud of this trip is that they went to
manufacturing plants. Most manufacturing left
this country long ago. What remains are just
remnants of our once great industrial base. The
biggest part of our economy is in the services
sector. Each month 10’s of thousands of white
collar jobs are leaving the country through
outsourcing. This throws white collar workers out
of their jobs.
Instead of stemming the tide of the job losses and
corresponding losses to the tax base, the
President and Congress are opening the doors of
the US to foreign workers to come in and take the
remaining jobs. This of course, drives wages
down. Allowing unlimited importation of foreign
labor puts American Workers out of business in the
same way that American manufacturers have been put
out of business by unlimited importation of cheap
goods.
After viewing the spectacle of this trip, I’ve
come to believe that the tax cut was merely a way
to buy time until the next election. After the
next election, the economic house of cards that
has been built will crumble and the truth will be
exposed to the American People. Their country has
been sold out from under them. They are no longer
the Captains of their Ship and the Masters of
Their Destiny.