The most absurd thing is happening. Claiming to push exports, President Obama is planning on pushing a host of policies that are well documented to offshore outsource jobs and displace U.S. workers. On Obama's export council is Verizon, a notorious labor arbitrager. Ford, Disney, Pfizer (another notorious offshore outsourcer of advanced R&D), and Dow Chemical are also appointed.
He’ll have to push new trade agreements, higher quotas for skilled foreign workers, and tougher enforcement of intellectual-property rights.
On what planet, besides a made up one, does someone believe displacing a U.S. worker with a foreign guest worker helps U.S. workers get jobs? Of course firing Americans and replacing them with cheaper labor does not create U.S. jobs for American workers. Evidence of U.S. workforce displacement through global labor arbitrage is overwhelming. The top users of foreign guest worker visas are offshore outsourcers and even the GAO has documented the displacement and wage repression of U.S. workers.
The H-1B “has become the outsourcing visa" …"If at one point you had X amount of outsourcing, and now you have a much higher quantum of outsourcing, you need that many more visas.“ - Indian Commerce Minister Kamal Nath to International Herald Tribune
It is estimated a South Korea Free Trade agreement alone will lose 159,000 jobs. This isn't job creation for Americans, it's enabling even more labor arbitrage for corporations. As Obama pushes for Columbia and Panama trade agreements, Union members are being executed. Murder as a method to union bust is a popular method in Columbia.
Yet, right in the President's ear are multinational corporations pushing for these bad trade deals. The Wall Street Journal:
Several executives say that on trade, they'll remain skeptical until the president moves to push trade agreements with Korea, Colombia and Panama through Congress.
This is the business round table and the U.S. Chamber of Commerce's agenda. To labor arbitrage, displace U.S. workers and offshore outsource more jobs.
Meanwhile very good plans to revamp U.S. jobs are ignored. Intel Corporation founder and former CEO Andy Grove answers how America can create jobs by tax incentives, as well as a tax levy for corporations who offshore outsource jobs instead of use U.S. labor. Grove even mentions the P word, protectionism, but notes we must learn from Asia on how to rebuild U.S. manufacturing, in particular advanced technologies. Get that? It's not the United States who knows how to build up an economy these days, it's China. Andy Grove is no worker oriented touchy-feely guy. A hard nosed industrialist, Grove did manage to build up a new industry in the U.S. called computer processors.
Today, manufacturing employment in the U.S. computer industry is about 166,000, lower than it was before the first PC, the MITS Altair 2800, was assembled in 1975.
Look at how many tech manufacturing jobs have gone to China in just one company, Foxconn, in the Business week graph below.
Here are Dr. Grove's proposals:
The first task is to rebuild our industrial commons. We should develop a system of financial incentives: Levy an extra tax on the product of offshored labor. (If the result is a trade war, treat it like other wars—fight to win.) Keep that money separate. Deposit it in the coffers of what we might call the Scaling Bank of the U.S. and make these sums available to companies that will scale their American operations. Such a system would be a daily reminder that while pursuing our company goals, all of us in business have a responsibility to maintain the industrial base on which we depend and the society whose adaptability—and stability—we may have taken for granted.
Is Andy Grove being called into the White House as a business adviser? No.
Yet the Business Roundtable, with a pure corporate agenda that has nothing to do with creation of U.S. jobs, sure gets a seat at Obama's table. Here are some of their complaints. Notice the foreign tax credit, which gives multinational corporations a nice profit to offshore outsource your job. Notice another agenda item is to union bust.
Does the below complaint list look like any plan to scale up U.S. domestic production? Of course not.
- FCC controls on broadband Internet
- EPA regulation of greenhouse gases
- Increased taxes on foreign earnings
- Shareholder rights to nominate directors
- New requirements on derivatives trading
- End to secret ballots in union elections
- Expanded damages for pay discrimination
- Uncertainty over new healthcare rules
- Restrictions on drilling
Meanwhile shippers are refusing U.S. exports Why? They are too low cost. In other words, we're shipping trash while imports are high value products, which pay shippers more.
The situation has gotten so bad that the Federal Maritime Commission has initiated a "fact finding investigation" to determine why shipping companies are canceling shipments or refusing to carry American exports.
"My fellow Commissioners and I have personally met with and expressed our concerns with Mr. Young Min Kim, the CEO of Hanjin Shipping and new chairman of the Transpacific Stabilization Agreement, as well as executives of other carriers," Federal Maritime Commission (FMC) chairman Richard Lidinsky told a House of Representatives hearing in March. "I have communicated to Mr. Kim a number of grievances we have heard from shippers." Heading up the investigation is FMC commissioner Rebecca Dye, who said: "If a U.S. exporter has goods to sell overseas, that exporter must be able to get them delivered."
The Alliance for American manufacturing also had a host of good plans to revamp U.S. manufacturing. They too were ignored.
We also have corporations sitting on hordes of cash, refusing to reinvest in the United States.
Despite the overwhelming evidence China is a currency manipulator in order to capture U.S. advanced technology sectors and other manufacturing, the Obama administration refuses to do anything about it.
It's no wonder we have people asking if Obama is Bush's third term, for once again we are getting agendas touted that do exactly opposite of what is claimed. In this case, more job destruction. Unemployment is at a critical tipping point and is a national emergency. Instead of creating jobs, it appears this administration is planning on destroying more jobs, per multinational corporate demands.