2012 Elections
The factory jobs aren’t coming back
Romney, Santorum and Obama all vow to fight for U.S. manufacturing. It's not just a lost cause; it's the wrong one
Rick Santorum, Mitt Romney and President Barack Obama (Credit: AP) Suddenly, manufacturing is back – at least on the election trail. But don’t be fooled. The real issue isn’t how to get manufacturing back. It’s how to get good jobs and good wages back. They aren’t at all the same thing.
Republicans have become born-again champions of American manufacturing. This may have something to do with crucial primaries occurring next week in Michigan and the following week in Ohio, both of them former arsenals of American manufacturing.
Mitt Romney says he’ll “work to bring manufacturing back” to America by being tough on China, which he describes as “stealing jobs” by keeping value of its currency artificially low and thereby making its exports cheaper.
Rick Santorum promises to “fight for American manufacturing” by eliminating corporate income taxes on manufacturers and allowing corporations to bring their foreign profits back to American tax free as long as they use the money to build new factories.
President Obama has also been pushing a manufacturing agenda. Last month the president unveiled a six-point plan to eliminate tax incentives for companies to move offshore and create new lures for them to bring jobs home. “Our goal,” he says, is to “create opportunities for hard-working Americans to start making stuff again.”
Meanwhile, American consumers’ pent-up demand for appliances, cars and trucks have created a small boomlet in American manufacturing – setting off a wave of hope, mixed with nostalgic patriotism, that American manufacturing could be coming back. Clint Eastwood’s Super Bowl “Halftime in America” hit the mood exactly.
But American manufacturing won’t be coming back. Although 404,000 manufacturing jobs have been added since January 2010, that still leaves us with 5.5 million fewer factory jobs today than in July 2000 – and 12 million fewer than in 1990. The long-term trend is fewer and fewer factory jobs.
Even if we didn’t have to compete with lower-wage workers overseas, we’d still have fewer factory jobs because the old assembly line has been replaced by numerically-controlled machine tools and robotics. Manufacturing is going high-tech.
Bringing back American manufacturing isn’t the real challenge, anyway. It’s creating good jobs for the majority of Americans who lack four-year college degrees.
Manufacturing used to supply lots of these kind of jobs, but that was only because factory workers were represented by unions powerful enough to get high wages.
That’s no longer the case. Even the once-mighty United Auto Workers has been forced to accept pay packages for new hires at the Big Three that provide half what new hires got a decade ago. At $14 an hour, new auto workers earn about the same as most of America’s service-sector workers.
GM just announced record profits but its new workers won’t be getting much of a share.
In the 1950s, more than a third of American workers were represented by a union. Now, fewer than 7 percent of private-sector workers have a union behind them. If there’s a single reason why the median wage has dropped dramatically for non-college workers over the past three and a half decades, it’s the decline of unions.
How do the candidates stand on unions? Mitt Romney has done nothing but bash them. He vows to pass so-called “right to work” legislation barring job requirements of union membership and payment of union dues. “I’ve taken on union bosses before, ” he says,” and I’m happy to take them on again.” When Romney’s not blaming China for American manufacturers’ competitive problems he blames high union wages. Romney accuses the president of “stacking” the National Labor Relations Board with “union stooges.”
Rick Santorum says he’s supportive of private-sector unions. While in the Senate he voted against a national right to work law (Romney is now attacking him on this) but Santorum isn’t interested in strengthening unions, and he doesn’t like them in the public sector.
President Obama praises “unionized plants” – such as Master Lock, the Milwaukee maker of padlocks he visited last week, which brought back one hundred jobs from China. But the president has not promised that if reelected he’d push for the Employee Free Choice Act, which would make it easier for workers to organize a union. He had supported it in the 2008 election but never moved the legislation once elected.
The president has also been noticeably silent on the labor struggles that have been roiling the Midwest – from Wisconsin’s assault on the bargaining rights of public employees, through Indiana’s recently-enacted right to work law – the first in the Rust Belt.
The fact is, American corporations – both manufacturing and services – are doing wonderfully well. Their third quarter profits totaled $2 trillion. That’s 19 percent higher than the pre-recession peak five years ago.
But American workers aren’t sharing in this bounty. Although jobs are slowly returning, wages continue to drop, adjusted for inflation.
The fundamental problem isn’t the decline of American manufacturing, and reviving manufacturing won’t solve it. The problem is the declining power of American workers to share in the gains of the American economy.
Robert Reich, one of the nation’s leading experts on work and the economy, is Chancellor’s Professor of Public Policy at the Goldman School of Public Policy at the University of California at Berkeley. He has served in three national administrations, most recently as secretary of labor under President Bill Clinton. Time Magazine has named him one of the ten most effective cabinet secretaries of the last century. He has written 13 books, including his latest best-seller, “Aftershock: The Next Economy and America’s Future;” “The Work of Nations,” which has been translated into 22 languages; and his newest, an e-book, “Beyond Outrage.” His syndicated columns, television appearances, and public radio commentaries reach millions of people each week. He is also a founding editor of the American Prospect magazine, and Chairman of the citizen’s group Common Cause. His widely-read blog can be found at www.robertreich.org. More Robert Reich.
Florida purging voter rolls
Governor Rick Scott moves forward with a plan to disqualify thousands of mostly Hispanic and Democratic voters
Rick Scott (Credit: Reuters/Brendan McDermid) Hated Florida Governor Rick Scott has a great idea: A big, massive purge of the state’s voter roll right before a sure-to-be-close presidential election. The governor ordered his secretary of state to compile a list of registered voters who might not be citizens, based on an unreliable and out-of-date state motor vehicle administration database. The secretary of state made a list and then realized the list was not actually very useful or accurate. Then he resigned, and now Scott is just purging away.
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Alex Pareene writes about politics for Salon and is the author of "The Rude Guide to Mitt." Email him at apareene@salon.com and follow him on Twitter @pareene More Alex Pareene.
Mitt Romney: Politics “like a sport”
What makes Mitt tick? The nominee says he likes politics because "I can't compete in competitive sports very well"
Republican presidential candidate and former Massachusetts Governor Mitt Romney gestures as he leaves a campaign event in Hillsborough, New Hampshire May 18, 2012. (Credit: Reuters/Jessica Rinaldi) Mitt Romney may have unintentionally opened a window onto his somewhat obscured motivations for running for president in an interview with the Wall Street Journal’s Peggy Noonan today, explaining that he likes sports, but isn’t very good at them, so he does politics instead.
Asked about whether he likes “the game” of politics, the presumed GOP nominee replied, “I like competition, and I think the game [of politics] is like a sport for old guys. I mean, you know, I can’t compete in competitive sports very well, but I can compete in politics, and there’s the — what was the old ABC ‘Wide World of Sports’ slogan? ‘The thrill of victory and the agony of defeat.’ The only difference is victory is still a thrill, but I don’t feel agony in loss.”
Continue Reading CloseAlex Seitz-Wald is Salon's political reporter. Email him at aseitz-wald@salon.com, and follow him on Twitter @aseitzwald. More Alex Seitz-Wald.
Trump insinuates self into Romney campaign
How a toxic attention-seeker (not Newt) will likely end up speaking at the RNC
Businessman and real estate developer Donald Trump (L) greets Mitt Romney after endorsing his candidacy for president at the Trump Hotel in Las Vegas, Nevada February 2, 2012. (Credit: Reuters/Steve Marcus) So. Donald Trump again? Are we really doing this again? I guess we are!
There were stories, recently, in the usual places, about how Trump was being seriously considered for a major speech at the Republican Convention. I did not dwell on the story much, because I assumed that these rumors were a product of Donald Trump’s prodigious vanity and powerful imagination. Ha ha ha, sure, the Republicans will definitely want the stupid make-believe TV mogul who pretends to fire people for a living, at their big party.
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Alex Pareene writes about politics for Salon and is the author of "The Rude Guide to Mitt." Email him at apareene@salon.com and follow him on Twitter @pareene More Alex Pareene.
“Battlefield Earth”: Romney vs. the Psychlos
The GOP's standard bearer calls L. Ron Hubbard's bizarro sci-fi epic his favorite novel. Is that cause for concern?
Republican presidential candidate and former Massachusetts Governor Mitt Romney reads a book to children in Manchester(Credit: Brian Snyder / Reuters) There’s a scene near the end of “Battlefield Earth,” Scientology founder L. Ron Hubbard’s 1982 science fiction epic, that may explain a bit of why Mitt Romney has said (most recently this week) that it’s his favorite novel.
Our hero, Jonnie Goodboy Tyler, has just finished taking down the Psychlo empire, which has ruled Earth for the past millennium and has dominated most of the known 16 universes for going on 300,000 years. Now Jonnie has to negotiate with the alien powers who are jockeying to fill the power vacuum left behind, and things aren’t looking so good for the human race.
Continue Reading CloseDaniel Oppenheimer's book "Turncoats: The Journey from Left to Right and How It’s Transformed America," a political and intellectual history of six prominent American intellectuals who journeyed from the left to the right of the political spectrum, will be published by Simon and Schuster More Daniel Oppenheimer.
Will Latinos elect Obama?
Hispanic voters may not be as decisive a voting bloc as everyone assumes. Just look at the swing states
(Credit: AP/Jae C. Hong) The conventional wisdom is that the growing Latino vote is key to President Obama’s reelection prospects. By all accounts, Latinos favor the president over Mitt Romney by wider margins than they favored him over John McCain in 2008, when he won two-thirds of the Hispanic vote and captured crucial swing states with large Hispanic populations, including Colorado, Nevada and Florida. Bloomberg reported this week that lower-than-average unemployment in the key battleground states “coupled with the growth of adult minority populations in those states create a higher bar” for Romney in his quest to oust the incumbent.
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Jefferson Morley is a staff writer for Salon in Washington and author of the forthcoming book, Snow-Storm in August: Washington City, Francis Scott Key, and the Forgotten Race Riot of 1835 (Nan Talese/Doubleday). More Jefferson Morley.
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