A letter to President Bush regarding the Economy

Harpseal | June 15, 2003 | Harpseal

[harpseal]

Dear President Bush,

Sir, I am writing today about what I and some others see as some significant problems with our current international trade policies. Specifically, our research has shown that the United States Government has agencies and policies in place that provide direct support to competitors of the USA. Specifically I am referring to The Overseas Private Investment Corporation as the first of these agencies. I realize this agency was created and expanded before your administration but it is a problem and it should be addressed by your administration. Policies in place that may harm American permanent residents include the H1B and L1 visa programs. As one of your supporters in the 2000 elections I appreciate many of the policies you have advocated over your term so far. I would hope that you are elected to a second term but I am concerned the economy may provide you with problems over the coming months until November 2004.

As I am sure you are aware unemployment in the USA is still rising despite the emaciated version of your tax cut that was passed and this continued rise in unemployment and underemployment may well threaten any economic recovery. A part of the reason that companies are not hiring is the effect of imports on the American economy. The Overseas Private Investment Corporation is an agency of the United States Government that provides American Corporations loans and political risk insurance for investing in nations other than the USA. Sir, this is not Free Trade or anything even close. This is government subsidy to the low cost labor of China, India, and other so called developing nations who are in direct competition with American workers for jobs. There is a correlation between productivity and capital investment. Simply eliminating this organization and its programs would help to stimulate investment in new plant and equipment in the USA since there would no longer be a subsidy to investing offshore.

Sir, another problem is the abuse of our immigration law that allows foreign guest workers who are willing to work for less than American workers in technical professional areas. I am referring to the H1B and L1 visa programs. The H1B program is supposed to provide temporary guest workers to help alleviate short term shortages within the American labor supply. Instead it has become a permanent short circuit around our regular immigration laws. As a result American engineers and IT people are out of work in record numbers. Sir, these people are American citizens and they vote. They need their government to enforce the laws for their protection. Curtailing the abuses of these programs will be a winning political issue because it is the right thing to do.

Sir the political implications of not doing anything about these programs are clear. A Democrat will run on the economy promising a government jobs program which will do little to help the economy really but may get enough votes to threaten your re-election. By taking a stand on these programs you will attract much of the traditional Democrat supporters in the next election. Your stand against government handouts will appeal to your base while driving a wedge between Liberals and the union member Democrats and independents. Thank you for your consideration

Respectfully yours,

[Lazamataz]

Amazinghow most conservatives are free market advocates until their job gets exported.

This ain't free market. The Overseas Private Investment Corporation, a gov't bureau, actively -- quoting them here -- "helps U.S. businesses invest overseas".

Read: The government of the United States is fostering the exportation of jobs from America. That ain't in my definition of "free market".

They say they are self-supporting. Well, that doesn't make their harmful mission less harmful. This agency needs killed.

[Lazamataz]

The IT industry is migrating to a centralized, remote managed environment, where all IT resources must produce an acceptable return on investment (ROI), and make a substantial contribution to the client’s competitive edge. Our clients can no longer afford to pay for mismanaged, unproductive IT solutions. The former IT skillsets that guaranteed long-term employment have become outdated as the complexity of IT deployments has diminished. I have been employed as an IT professional since 1992 and this trend was beginning to emerge even then.

IT Skillsets always require ugrading and old skillsets always become outdated. I agree there is an increased pressure for ROI, but I believe it is counterproductive to expect increased ROI from people who live a half a world away.

I absolutely disagree that complexity of IT has decreased -- at least on the programming/analyst side of the equation.

[Tokhtamish]

This has nothing in the least to do with "environmental laws" or "government regulation". It is two things.

1. Labor costs. Wages are so much lower in China and India that workers in the industrialized West doing the same jobs cannot possibly compete.

2. State policy. China and India aspire to be greater powers. Building up their IT industry and manufacturing bases will no more be left to the vagaries of the free market than would a 1900-1940 major power have left its steel and oil industries to the vagaries of the free market. They are protected and subsidized by the state. The Chinese military controls an entire industrial empire financed by Chinese bank loans that never have to be paid back. So it is moronic to talk about free trade competition with state supported enterprises that do not have to pay back their creditors.

Harpseal, I think GWB is far, far too complacent about his reelection chances. We need to puncture that complacency of he is in for a nasty surprise if Gephardt or Lieberman is the candidate.

[A. Pole]

I also understand OPIC operates at a profit, it's risk insurance has not cost the US taxpayers (remember OPIC operates at a net profit),

I am healthy, can you insure me? You pay my medical bills when I get sick (remember I did not get sick so far).

How many businesses would "export" jobs to the unstable countries if taxpayers did not guarantee their safety?

[harpseal]

Thanks

[harpseal]

Like you I think Menken's words have summed up the situation. I have been amused in many ways at the accusations against me thatI am a sociailist for wanting to get the government out of subsidizing the outsourcing of our economic base to foreign nations. This letter was an attempt to do something more than research and moan about what is being done to the republic. I am realist enough to know that it may be an exercise in futility.

I have freely given permission for anyone to use any part of my letter in whole or in part as their own. It is not just about IT it is about manufacturing, engineering, healthcare financial services and just about every productive activity Americans do.

What i see happening is more and more the Corporate statists wish to insure a new fuedalism where they control everything and everyone. Their demand to expand is insatiable. Yes, it is related to the unconstitutional gun laws because armed sewrfs might rise up against being serfs. My apologies for not getting back sooner to you but I needed sleep last night.

[harpseal]

I actually believe that if we had a free market the USA would be at full emplyment and its economy growing at a very good rate. However, what we have now bears no resemblence to a free market.

[harpseal]

Harpseal, I think GWB is far, far too complacent about his reelection chances. We need to puncture that complacency of he is in for a nasty surprise if Gephardt or Lieberman is the candidate.

Maybe just maybe a flood of letters on these issues will get his attention.

[A. Pole]

export of jobs to their country will not diminish

Is it what Adam Smith had in mind? Export of jobs to increase imports?

[harpseal]

How many businesses would "export" jobs to the unstable countries if taxpayers did not guarantee their safety?As I understand it the premiums paid are invested in projects to be insured thus if the project goes South the loan will probably not be repaid due to the offshore subsidaryu having the obligation and the taxpayers will have to pay off the whole bill.

[harpseal]

First, I do not disagree with what you posted and hopefully in the future some carefully crafted policy can more fully address these issues.

This letter as I stated is a very small first step towards saving the American Economy. it is about two issues immigration law cheats and the subsidized outflow of capitalinvestment to destroy American industry.

If these low wages really offered a good return on investment why do they need a subsidy to magnify the outflow of capitaland demand for labor. I agree there are many things beyond this that need to be fixed but this is where I happened to start. Surely others can start the balls rolling on their priorities. Maybe by cooperating we can get something done.

[Noumenon]

What some of us are calling corporatism - the collusion of very big business, finance and government - is nothing more than soft-core fascism.There's a little something there for leftist scum like Inslee and the power-hungry on both sides of the aisle. All Democrats and most Republicans have lined up squarely on the side of modern feudalism.

[harpseal]

the collusion of very big business, finance and government - is nothing more than soft-core fascism.

Which translates to no big rallies and terror insiring uniforms for everyone yet. Maybe they will go with plainclothes einsaztgruppen.

[lelio]

You might want to also send this letter to the democratic presidential frontrunner (is is Dean this week?). They're desperate for an issue to bring up, and this would resonate with a lot of the nation.
I'm afraid that if you just send this to Bush it'll get dumped in the trashbin as you're not a major dollar contributor. But if the other side gets ahold of this issue, the current administration would have to take a stance on it. And I'll sure like the Pubs to take care of this versus the Dems.

[A. Pole]

You might want to also send this letter to the democratic presidential frontrunner (is is Dean this week?). They're desperate for an issue to bring up, and this would resonate with a lot of the nation. I'm afraid that if you just send this to Bush it'll get dumped in the trashbin as you're not a major dollar contributor. But if the other side gets ahold of this issue, the current administration would have to take a stance on it. And I'll sure like the Pubs to take care of this versus the Dems.

This might a good idea.

[A. Pole]

You might want to also send this letter to the democratic presidential frontrunner (is is Dean this week?). They're desperate for an issue to bring up, and this would resonate with a lot of the nation. I'm afraid that if you just send this to Bush it'll get dumped in the trashbin as you're not a major dollar contributor. But if the other side gets ahold of this issue, the current administration would have to take a stance on it. And I'll sure like the Pubs to take care of this versus the Dems.

This might a good idea.

[harpseal]

Well I did cc: the DNC and Gephardt and Kerry plus I gave it to a member of my extended family who will pass it on to at least one Dem Senator and probably a whole lot more. plus I have submitted same to a number of publications. I have no idea if it will be printed.

[harpseal]

Perhaps it may be said that corporate socialism as we are beginning to see it is a coalition of corporate power and governmental power that promotes the ascension of corporate rights and privileges, such that corporate right to maximize corporate profit takes precedence over explicit and implicit rights of american citizens.

I personally think this describes the situation quite well. however it is an internationist socialism as opposed to a nationalistic socialism. One of its tenets is that states are subsercvient of the coroprations and the means of force to exercise the coporate will, Its exact nature will be defined later on an ad hoc basis by those in power. Further, since it is a very loose association of corporate interests that align together on as issues that each coporate decision making team concludes are in their immediate interest alliances among teh powerful are always undergoing dynamic change. This lack of a formalized unity among those who are exercising power may actualy be its weakness as well as a strength.

[A. Pole]

Well I did cc: the DNC and Gephardt and Kerry plus I gave it to a member of my extended family who will pass it on to at least one Dem Senator and probably a whole lot more. plus I have submitted same to a number of publications. I have no idea if it will be printed.

Have a look at American Prospect. They try to figure out the new ways for Democrats. For example see this article:
"Seven decades after the Great Depression, Democrats have their work cut out for them."

One quote:
Even after all we've learned, the Democrats' own romance with the free market is not entirely over. The financial rewards to be reaped by cultivating business donors still retain their allure, as the opposition of some Democratic leaders to treating stock options as expenses makes clear."