Exporting US Jobs

The New American Magazine-JBS ^ | Sept 22, 2003 | William Norman Grigg

[GatekeeperBookman]

An engineered exodus of manufacturing and hi-tech jobs threatens to abolish the American middle class — the bulwark of a free society.

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Vol. 19, No. 19 September 22, 2003 Exporting U.S. Jobs

‘‘We were middle class," lamented former textile worker Jimmy Bennett in an interview with the Washington Post, before hastily correcting himself: "We still are." Jimmy and his wife Verleen, residents of Kannapolis, North Carolina, were among the nearly 6,500 employees of the Pillowtex towel factory laid off in early August.

Just two years ago, reported the August 9th Washington Post, the Bennetts had bought a modest $100,000 home, "confident their combined wages … would continue to support the comfortable lifestyle that had long eluded their parents." Like many of their former colleagues, the Bennetts, who both work part-time at near minimum wage, quickly sold many of their household amenities to get by on roughly half their previous take-home pay.

Thousands of other former Pillowtex workers "are fending off eviction notices, car repossessions and home foreclosures, and making difficult choices about which prescription drugs to skip and which utilities to turn off," reported the Post. "People are turning off cellphones, cutting cable TV, and pleading with creditors," added the August 5th Christian Science Monitor. "Already, 200 have had their water shut off."

The Monitor describes the Pillowtex closing as an event akin to a natural disaster. But it wasn’t a destructive caprice of nature that shut down the plant. Rather, as the paper observes, the firm was overwhelmed by "a flood of imports from China." Resulting in the largest one-day layoff in the history of North Carolina, the Pillowtex bankruptcy dramatically exemplifies the devastation being wrought throughout America’s manufacturing economy as our trade deficit with Communist China grows.

As the Monitor reports, "Manufacturing businesses, from electronics to furniture and fishing lures, are closing their doors or moving production to China.... Three members of the president’s cabinet on a cross-country jaunt to promote the Bush economic plan have gotten an earful from angry businesspeople trying to compete with Chinese imports made by workers getting 50 cents an hour."

Charles Bremer of the American Textile Manufacturers Institute points out that as textiles from Communist China and Vietnam flood the American market, "People are moving jobs faster than you can count." In 2008, all import quotas on Chinese textiles will be removed. "At that point," predicts Bremer, "the Chinese will completely dominate the market."

Ironically, at least some of the future textile imports from China will probably be produced on looms from Pillowtex’s Kannapolis facility — but those looms will be in China, operated by Chinese workers. The August 7th Charlotte Observer reported that "looms and other machinery [from Pillowtex] likely will be removed from plants, packed and shipped to manufacturers in China, Pakistan, and India...."

Manufacturing in Decline

As the erosion of America’s manufacturing base accelerates, communities across the nation are experiencing economic ruin similar to that of Kannapolis.

This summer, 10 plants operated by the Hooker Furniture Corporation were shut down. These factories were shuttered even though the company’s profits had grown in recent years "largely by outsourcing to cheaper manufacturers abroad," reported ABC News on August 14th.

"Every time we’ve asked them to step up, they’ve done it," commented Hooker CEO Paul Toms of the employees who lost their jobs. "I feel like we’ve let these folks down, and I don’t know what I’d do different.... It’s unlike anything I’ve seen in my 21 years in the industry. A lot of plants have closed, people have been sent home, and it really has come quicker than anybody expected. I think it’s hard to say, three, four, five years from now, what will this industry look like domestically."

As with the American textile industry, our furniture industry is being decimated in uneven competition with low-wage nations like Communist China. The Chinese "have millions of people that they’re trying to have employed so it’s hard to fault them," Toms opines. "But I think that at some point, this country has to think about what’s best for us.... You have industries and examples of predatory pricing. That’s the risk we run not just in furniture, but in any industry that we’re letting leave this country."

Andrew Brod is an economic analyst in Kernersville, North Carolina, where Hooker closed a plant formerly employing hundreds. He told ABC News that many American companies, rather than making capital investments in the U.S., have decided to "funnel investments abroad, many to China itself...." "Some have contracted with Chinese producers, but others have entered into joint ventures to establish new factories [and] to refurbish existing factories," Brod notes.

The closing of the Kernersville Hooker plant is already having a local economic impact. "If I don’t work, I can’t go out and spend money to shop or buy what I need, so that’s going to put somebody else in jeopardy," observed former Hooker employee Mildred Stiles. Rather than being "that trickle-down thing," she continued, "I think it’s going to be more of a pour-down.... I think it’s going to hurt everybody concerned." In some economic circles, the phenomenon she describes is called the "race to the bottom" — the sudden, rapid decline of an entire population from the middle class to near-subsistence living.

Our nation’s manufacturing sector has been the gateway to the middle class for untold millions of Americans, resulting in unprecedented national prosperity. What will America look like if manufacturing jobs continue to be outsourced to low-wage foreign competitors? Surveying Kernersville’s grim economic prospects, Brod declares: "In part, the answer to that question is, ‘What sort of America do you see now?’ It’s here already."

[GatekeeperBookman]

Hate the hatchet job they do on Mr. Bush ( to thier detriment ) but this is a nagging stroy which might best be seen.

[RLK]

It's not a hatchet job on Bush. It's reality.

[GatekeeperBookman]

Perhaps you perceive that as true-but I read the magazine & see gratuitous, mindless insult where there should be reasoned argument. They have sharpened their focus & cleared the conspiracy cob webs, but their single minded attack, relentless hatred displayed with obvious attempt at insult, is just absurd. They only need raise fact-that would be it's own argument. They harm themselves & cloud the issues with this assualt.

[Voltage]

I guess whipping businesses until they pack up and leave wasn't such a good idea after all!

[RaceBannon]

http://www.freerepublic.com/focus/f-news/980791/posts
Exporting U.S. Jobs

[GatekeeperBookman]

Many who are respected, argue this is a false problem-but many also loose their jobs, their professions & all they ever hoped to be. Hard times. Illegals drive down wages & work is exported to where labor is either cheap or gov sponsored ( like slave labor in china ).

[GatekeeperBookman]

My apologies-I usually search. Wonder if there shall ever be a mechanism to automatically refer one to the first or earlier posting when attempting to post??

[A. Pole]

"looms and other machinery [from Pillowtex] likely will be removed from plants, packed and shipped to manufacturers in China, Pakistan, and India...."

When the Soviet troops entered Germany in 1945, they moved the machines, tools and whole factories to the Soviet Union. Well, Germans lost the war.

[afz400]

"looms and other machinery [from Pillowtex] likely will be removed from plants, packed and shipped to manufacturers in China, Pakistan, and India...."
It seems as if we have quite a few businessmen who are traitors like Pillowtex owners - selling out their own countrymen for a few dollars. And I thought Clinton was the problem. Bush is just as culpable in his silence as Clinton was in his actions.

[calchey]

What is reality is the buying public that choose the lower priced item which comes from China and elsewhere. The American people are the ones who are not supporting American made products. Why? Haven't we been told to always buy American made first. I do when I can find them and many would say I can't find them cause the jobs have gone overseas. Why have the jobs gone and are going? Well, we didn't choose to buy American when we had the chance. Why didn't we buy American again. Eventually, I am sorry to say, that the high cost of manufacturing prevented the company from being able to compete and since MAKING MONEY for the owners and stockholders has to be the bottom line they end up having to make decisions in the best interest of the company. Are some of the companies greedy and don't care about the workers. YES and they should be singled out and boycotted. I am not defending companies, but I do see why some have to eventually move, leave or reorganize to make a profit. They are not in the business of just creating jobs. Somewhere down the line, profits have to be made. If we want to keep jobs, then we have to not gripe and complain if we have to pay more for American made than China made. This is an enormous problem and again I hate to hear of any company leaving and rejoice when I see new companies opening, but facts are facts and money is money.

[A. Pole]

Why have the jobs gone and are going? Well, we didn't choose to buy American when we had the chance.

This cannot be done by the individuals. Some will sacrifice and pay higher price for American goods but other will be rewarded for the opposite attitude. American companies will be penalized for hiring Americans and driven out of business.

The only way is to bring back what was established by the Founding Fathers and what is suggested by the Constitution - the foreign sales tax ie tariffs. The fair (adjusted for the difference in wages and cost of living) tariffs will level the playing field and allow for the truly free trade.

[Voltage]

calchey...you are among those that choose to buy products not made in the USA. For example your computer. I doubt you can find a single component in it made in the USA. Doesn't it really irk you to even use it?

I guess not!

[Kay Soze]

Keep on going to Walmart.

Sam Walton is the Manchurian candidate.

[GatekeeperBookman]

This is our delima-he is the only President we have & the presumed future choices look worse. Far worse. and, he still looks better than the last.

[RLK]

Bush is just as culpable in his silence as Clinton was in his actions.

------------------------

That sums it up. All that is required for evil to triumph is good men do nothing. In this case, say nothing. The only person or thing I have heard Bush criticize was Saddam Hussein from the safety of a ten year momentum of criticism he could agree with requiring no risk or effort. Other than that, he caves in or shows no initiative.

[calchey]

You presume a lot to know my buying habits. I repeat, I seek out American made products when I can find them for the product I am looking for. My computer is made by me with parts I picked out and the best I could afford to pay for. I may be wrong, but as of several years ago, Super Micro motherboards were the only ones being manufactured in the US. They may not be anymore. Does it irk me to use this wonderful machine for communicating with people like you, nope. I love it. It's all about the best bang for the buck, whether it jobs or parts for a computer. If it irks you, and it seems that it does, to use a computer, then quit. As long as we, the buying public, like those cheap parts then companies are going to go where its cheap to make them. If we decide we want to pay more for home grown American made products, then the companies will come back and give us what we want. Till then, I, like you, can gripe and complain all day about Bush loosing jobs and it won't do a bit of good cept put another politican in office who promises everything for the working man, and delivers nothing. Put your money where your mouth is and buy American when you can, then you will get the American jobs back.

[Walkin Man]

Bush is just as culpable in his silence as Clinton was in his actions.

[Clintonfatigued]

What can be done to change this? Can businessses who contract labor overseas not receive tax cuts? Or is it hopeless?

[Clintonfatigued]

Maybe, if "Made In USA" tags were prominently displayed on items, it would help some. But products labeled "Made In USA" aren't always made entirely in America.

[Voltage]

What I know is that your computer is built entirely from imported components. And it doesn't bother me in the least. And I guess it doesn't bother you either, so what's the point in complaining about it?