Death of Manufacturing

The American Conservative ^ | 8/23/03 | nonglobalist

[harpseal]

The plan


In no particular order of importance.

1. Get rid of government subsidies for offshore investment of US companies. OPIC is the first such program which should go but support of World Bank programs that subsidize the outflow of Capital would be another.

2. Use tariffs on those nations which are engaged in unfair trade practices such as currency manipulation (China and India for example), those nations which refuse to open their markets to US products (China for example with its 50% tariffs on US consumer goods and non tariff barriers), those nations that subsidize competition to American Industry (airbus for example) and those nations which have slave conditions for their workers.

3. Use tariffs and other means to prevent the relocation of jobs offshore that are essential to the national defense. If necessary take control of the company seeking to export vital technology or industry by means of eminent domain (No I do not like this last option and I will only defend its use as an absolute last resort like say in the case of rare earth magnets essential to smart bomb technology). Provide a hardened, widely distributed infrastructure to supply all that is needed for our military units and civil defense that can be continued to be deployed in the event of any military attack.

4. An immediate end to guest worker programs. If people wish to come to the USA to work and make a life let them immigrate according to the rules.

5 Provide economic development zones where the corporate income tax is zero for operations within these zones. In order to operate in this zone a company must agree to only purchase American components if available and employ only American citizens or legal immigrants in these operations. These economic development zones shall be eventually be expanded to include every bit of every state once the benefits are shown I would like them to be totally implemented immediately but I realize4 that may be overreaching.

6. Scale back unnecessary regulation including the tort system. Institute a cap on punitive damages, limits on class action suits, and limits on liability to the actual percentage of liability with no plaintiff able to collect if said plaintiff was involved in the commission of a felony at the time of the alleged tort or was more than 49% negligent in the alleged tort. Note that the loser in a frivolous lawsuit shall pay the attorney fees of the winner. There are many other regulatory structures that also need to be included that need to be included such as repealing the Family leave mandate, getting rid of OSHA etc.

7. Increase the domestic content in purchases by the Department of defense and give absolute preference in non-domestic content to proven allies of the USA over say the French or Germans. The only reason any content for DOD purchase may come from non US allies is that content is not available elsewhere and is essential.

8. Do not allow expense involved in moving operations overseas to be included in business expenses under the IRS code.

9. Prosecute for perjury anyone who has made a false statement in order to employ an H1B or L1 visa worker. I will be lenient on the actual perjurer if he/she was ordered to make this false statement and he/she provides testimony to aid in the conviction of the person ordering the perjury. Just because a person is a CEO does not give them a pass on criminal behavior.

10. Prosecute anyone who orders the transfer of vital defense technology or funds a R&D project that could be of use to our military overseas except to strong allies of the USA. Make the necessary enhancements to our espionage laws so that continued support or funding of any R&D in a nation whose government has threatened the USA is guilty of espionage. The UK and Australia come to mind as meeting these criteria for being eligible for transfer of technology first. There will be other nations and a gradation of what can be transferred to which specific nation. Under no circumstances may technology be transferred to any nation whose government has threatened the USA within five years without a complete change of government or specific exemption from Congress and the administration.

11. Deport all illegal aliens immediately and take measures that prevent the entry of any more illegal aliens. Fine all companies knowingly employing illegal aliens Criminal sanctions should be imposed on anyone helping an illegal alien stay in the USA in violation of our laws.

12. Decrease the punishing levels of taxation on companies and eliminate the double taxation on corporate dividends. See effects of item 5 for how minimal this will be if item 5 covers the entire USA. Eliminate all IRS provisions that inhibit free use of independent contractors by businesses for example section 1706.

13. Eliminate the minimum wage so that the worker can be paid based on productivity. Overtime compensation will remain the same but instead of 150% of the "wage" the worker would receive 150% of the production pay. If one through 13 are enacted # 14 becomes an irrelevancy as no one will be working for that low a wage.

Now since I started posting this plan another idea has come up that in my opinion is a very good policy that stands on its own. Now I give credit to Jim Gibson and Freeper Ed_in_NJ for coming up with the idea, separately to the best of my knowledge. However I can be corrected on that. The tariff phrasing is from Jim Gibson.

“I suggest that the US Customs Department charge a $1,000-per-container inspection fee on every container entering the United States. This fee would be used to completely fund the cost of inspections. If we assumed that a four-man team could fully inspect two containers a day or about 500 per year, it would require 48,000 inspectors. Allowing for at least 2,000 support personnel, we would need at least 50,000 workers. Because these workers would require high intelligence and skill levels they should earn at least $30 per hour. At 40-hour weeks plus benefits, I estimate the cost per worker to be over $75,000 per year, all paid by the foreign manufacturers. Even so, this would still leave over $2.25 billion to cover all other costs. Any revenue not used would be used to compensate American workers displaced by foreign imports. “

I urge and encourage everyone who agrees with this plan and or the terror tariff idea to communicate this to every politician you can think of.

[harpseal]

I've heard of voodoo economics, but this is the first time I've ever encounterd cargo-cult autarky economics.

Just look at those who say low tariffs are good for us and you will clearly get an example of some of the most illogical twisted thinking onteh planet that is unless of course one is a Marxist.

[searchandrecovery]

...when China fishes the nationalization of the rights to the technology transfered to them by some of these automobile makers will they demand a lsicese fee for the use of that technology?

And will they impose the metric system on the U.S.? (If so, I'm going to have to start studying now.)

[LibKill]

I've been saying this for some years. We can't get rich selling burgers and information and cheap chinese goods to each other.

We need industry. Smokestacks = wealth.

[harpseal]

First, you should have included Bon Mots in your correction of destination.

Clearly I agree with this statement Anyone who cannot fathom the de-construction of this country as a result of these disastrous policies suffers from ultra severe rectal-crainial inversion.

However, some might consider this as not merely a statemnet of opinion but personal abuse and a favorite tactic on many of teh apologists for the everybody ahead of america crowd or the "Libertarians" who refuse to look at the realities of the world is to post a number of offensive and irrelevant comments that do not add any facts or logic to teh dbate athen when tehy get what is IMHO an appropriate flame or flames in response thry go to teh admin moderator to claim abuse that they actualy started. Thus we have the kinder gentler harpseal who will show patience and tolerance of insult to try to explain the facts to the ignorant and bring light to those who worship darkness. I have decided not to simply answer insult with insult while such allows me to vent my anger against those who start I have decided even those who post the most insulting comments will be allowed to continue and I shall try to convince them that they to shoudl take a stand that will help America fix its structural problems.

[harpseal]

According to Pat, when Dell Computer imports parts for assembly in the U.S., that's bad.

According to Pat, when GM exports parts for assembly in Mexico, that's bad.

I wish he'd make up his mind.

Actually a correct summation of Pat's points would be when dell assembles imported parts in the uSA that is bad compared to assembling parts made in teh uSA in the USA. When GM exports parts mostly from Vountries other than the USA to Mexico for assembly there and later sale in the USA that is worse.

At least that is the clear implication from what is written.

[harpseal]

And will they impose the metric system on the U.S.? (If so, I'm going to have to start studying now.)

Well on this question I have no idea but since i am familiar with sciientific measurement learning the metric system is the least of my worries. I have no desire to be a slave even a better treated slave becuase I can understand metric measurements.

[1rudeboy]

U.S. exports to Mexico are up, but it is not finished goods we send south but parts to be assembled . . . . [emphasis added]

Your interpretation is incorrect.

[magellan]

These parts are supplied from Japan, Taiwan, and China."

This is rarely true in the modern auto industry. Automobiles are manufactured, not assembled. They are not like Dell PCs.

The major parts suppliers must be close to the final manufacturing plant, especially with Japanese maufacturers, because of their use of just-in-time, zero inventory manufacturing.

In and around Tuscaloosa Alabama, home of the Mercedes M3 SUV plant, there are numerous supplier companies. The same is happening in Montgomery Alabama, home of the new Hyundai plant. Numerous Hyundai suppliers are building plants in the Montgomery area.

Obviously some things will be shipped in, however, labor continues to represents the largest cost component of most large machines. In fact, that is why Nissan, Toyota, Honda, BMW and Mercedes came to the US. Our labor is cheaper than Japanese or German labor, and the quality of our workforce is just as good (especially when the UAW is not involved).

[harpseal]

Clearly anyone who has also studied teh actuialities of GM offshoring wees my interpretation as correct as imprting parts for export is not a good Idea but be that as it may it can not be argued that Pat view export of parts from teh USA to a Mexican operation as not as good as assembling them in the USA.

Now it does no good to misreprent his arguments the way tyou IMHO attempted. If you have any thing enlightening to add I am always ready for such enlightenment.

[1rudeboy]

I misrepresent nothing. It is you who refuse to "wee."

[ex-snook]

"We need industry. Smokestacks = wealth. "

Good one. The industrial engine drove the USA to today's wealth. The Bush operated mouse engine (invented by the Gingrich-Gore "Third Wave Information Age") has driven 3+ million jobs out of the economy.

[LibKill]

We may disagree on causes, but the fact is that we need industry. Smoke-belching, high-pollution, industry.

[1rudeboy]

U.S. exports to Mexico are up, but it is not finished goods we send south but parts to be assembled—and factories and jobs as owners shutter plants north of the Rio Grande in search of wages that are 10 to 20 percent of what they have to pay in the United States.

There is no way to translate or diagram the above sentence in such a fashion that allows you to "summate" that Pat is speaking of foreign parts being shipped to foreign assemblers.
"Misrepresent," indeed. [scoff]

[spoiler2]

bttt

[JesseHousman]

Already posted here:

http://www.freerepublic.com/focus/f-news/964920/posts

[Screaming_Gerbil]

...Detroit of 1960 was a nice place. The post-deindustrialization Detroit of today is not. In fact, none of the cities of the Northeast have recovered from deindustrialization. When the factory closed, the supply chain of firms that fed it collapsed...

...And you ignore a key result of the destruction of those low-semi skilled stable jobs. A huge and growing underclass as it is impossible to work your way out of the ghetto...

Thank you for posting that. I grew up in Detroit. Same problem with Flint. (And I'm sure with many other cities).

You are correct about the large and growing underclass.

The loss of these industrial jobs has ment that people in our country with a moderate education don't have a chance of making enough to support a family.

When it's just people who don't want to work and just want to get high and party are the ones left out, no big loss.

But when you have to have an advanced degree or some set of unique technical skills in order to support a family, that's going to leave a lot of average Americans unable to properly raise a family.

That forces the rest of us to pay the costs of these broken families - in social services, welfare, police, the criminal justice system, etc.

We are being forced to sacifice our families and lifestyle (which includes our traditions and freedoms) so that other countries, whose people are not nearly as free as us, will benefit.

I don't think that "Free Trade" with a government that treats it's citizens like China does is a good deal. At least make them adhere to some standards of how they treat their workers / citizens.

[Screaming_Gerbil]

Good Plan. Well thought out. I've seen you post it before, and it makes good sense every time I see it.

Think they'll ever do anything like it?

(Short of the point when everyone who is not one of the wealthy elite, or employed by the govenment, has been downsized / outsourced out of work)...

[Ronly Bonly Jones]

You have obviously never been to Detroit. The Detroit of 1960 still exists; it just moved north 15 miles or so, to the burbs. Just because the core city rotted under a racist Marxist mayor doesn't mean that the city died or that the industry left; it simply moved, and, scattered among 20 or so suburbs, it supports twice the people it did in 1960.

[Great_Dame]

Toyota, Nissan, Honda, BMW, and Mercedes, building car manufacturing plants in America to take advantage of ... U.S.!

Please don't confuse manufacturing with assembly. The majority of the plants you cite are for assemble only, all the parts are manufactured in countries with much, much lower manufacturing costs (read wages) than the good ole USA. The jobs we "gain" here exist because it allows some Americans to think they are buying an American made product and for the companies to take advantage of tax releif packages for establishing a US "manufacturing" plant.