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have to compete with lower-wage workers overseas, we’d still have fewer factory jobs because the old assembly line has been replaced by numerically-controlled machine tools and robotics.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.
Obama: Born in Kenya? (No)
Updated: Right-wing hacks are again insisting that the president was born overseas, but say they aren't birthers
President Obama (Credit: AP/Pablo Martinez Monsivais) [Correction Appended] One of the Breitbart dopes has a SCOOP: Some sort of ancient press release says Barack Obama was born … in Kenya. IMPEACH. Retroactively install John McCain, we have so much Iran bombing to make up for.
This particular dope — Ben Shapiro, former boy-pundit Joel Pollak, some guy — says he is totally not a birther, at all, whatever gave you that idea, but it is very important that this forgotten old publicity pamphlet from a literary agent for a book project that never happened be unearthed and heavily hyped now, because the president was not properly “vetted” in 2008. (The idea that the president is a secret radical whose secret radicalism was not properly explored by the mainstream media is a stupid conspiracy theory that is almost as ridiculous as birtherism, by the way. We have proof that the president is not a secret radical leftist, and it is “his entire political career including his first term as president of the United States.”)
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.
Obama’s broken immigration promise
ICE said it would target dangerous immigrants, but it's actually deporting a higher percentage of non-criminals
A man in Ciudad Juarez, Mexico, stands next to the border fence as two U.S. law enforcement officers look on from the U.S. side of the fence. (Credit: AP/Raymundo Ruiz) The Obama administration claims that it is deporting record numbers of illegal immigrants while focusing on those with criminal records. But new data from Immigration and Customs Enforcement shows that the number of deportation orders has declined dramatically since last summer and non-criminals comprise a growing percentage of those expelled from the country.
That wasn’t supposed to happen under a policy of “prosecutorial discretion” announced by ICE director John Morton last June. The goal of the policy, announced with much fanfare in the Spanish language media, was to spare “longtime lawful residents” from deportation and to focus on criminals.
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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.
Colorado congressman: “Obama’s not an American”
A congressman renews the GOP's big lie, and reveals the party's true ideal: Male, rich, straight, white
Mike Coffman (Credit: AP/Ed Andrieski) Twenty-four hour news cycles are messy and chaotic, almost never fully summarizing the zeitgeist of the moment. But today is one of those rare days where the news cycle perfectly embodies the tectonic shifts in American politics — and the friction that comes from such shifts.
In the last day, we’ve learned that America has reached a demographic tipping point. For the first time in history, there are more minority births than white births in the United States, meaning we’re closer than ever to becoming a majority minority nation.
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David Sirota is a best-selling author of the new book "Back to Our Future: How the 1980s Explain the World We Live In Now." He hosts the morning show on AM760 in Colorado. E-mail him at ds@davidsirota.com, follow him on Twitter @davidsirota or visit his website at www.davidsirota.com. More David Sirota.
More Rev. Wright hate porn!
"The Defeat of Barack Hussein Obama" was designed to turn on one wealthy right-winger – and even he rejected it
Jeremiah Wright (Credit: AP/J. Scott Applewhite) On the one hand, it’s almost funny. Fred Davis, the man who created hilariously bad ads for losing 2010 Republicans — Carly Fiorina’s “Demon Sheep” and Christine O’Donnell’s “I am not a witch” — now wants cranky conservative billionaire Joe Ricketts to spend $10 million on an advertising campaign to take down Barack Obama. He’s teamed up with Whit Ayers, one of his collaborators on Jon Huntsman’s spectacularly terrible presidential run. Halfway through their description of “the Ricketts plan,” they describe themselves as “pirates.” Ay, matey, but are they after Obama’s booty – or Ricketts’?
Continue Reading CloseJoan Walsh is Salon's editor at large. More Joan Walsh.
Jon Huntsman for New York City mayor?
Yes, please. It would be very funny to see him lose
Yes, Jon Huntsman should definitely run for mayor of New York, because I never tire of watching Jon Huntsman get rejected by voters. The best part of a Jon Huntsman campaign is when his well-heeled supporters very sincerely and tragically argue that the fact that no one wants to vote for Jon Huntsman is a sign that the Republic itself is in peril. They would get so sad and melodramatic when he got 10 percent of the vote.
Now, there is no evidence that Jon Huntsman is planning for run for mayor of New York City, but one of his annoying daughters tossed this one out there last night:
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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.
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