New trade agreement may hurt U.S. jobs, not help
by Anthony Mason, CBSNews -- August 6, 2011
[...]
That reality is not lost on the more than 300 people who work here. They work fast; 220 pieces move through 33 pairs of hands with efficiency. It takes 19 seconds to stitch and inspect each piece - less time to glue the soles. The results are significant.
In 2004, it took 8 days to finish a pair of performance shoes. Today, this group finishes in less than 3 hours
"The quicker we make the shoes, the cheaper it is," says Sarah Clark-Therrien, New Balance employee.
Despite their efforts, a new threat has emerged. It's a trade agreement being pushed by the Obama administration called "The Transpacific Partnership," which would open eight developing markets - Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam - to U.S. goods.
The goal of the agreement is to create jobs here, but it also removes a steep import tax on Vietnamese-made sneakers, which could actually threaten jobs at this plant.
"If this tariff were lifted, it's not gonna help our business out," says New Balance Plant Manager Welch.
The bottom line is that, no matter how efficient, Americans are 10 times more costly than Vietnamese workers, making the costs per shoe much lower.
"This trade agreement makes me and the staff nervous because it's gonna reduce our competitiveness in making shoes domestically," Welch says.
[...]
New Balance is the last major brand to produce athletic shoes in the U.S.
http://www.cbsnews.com/...
This is how jobs are Lost in America, one Company at a time, one Product at a time, one equalizing Tariff at a time.
People wonder where the American Jobs have gone. It not a mystery, you just have to look around you, and hear the stories of your friends and neighbors.
The Free Market and Free Trade Agreements dictate work goes where the Profit is, not necessarily where the Workers are ... Tell me why America worships these broken systems again?
Just because they have the word "Free" in their Names?
Pssst! That only means 'Free' to the Multi-National Corporations. Workers still have to pay Big Time; as well as any dedicated Corporate Patriots still daring to keep their operations here at home. Like New Balance is trying to do, trying to do the right thing for Americans. And they are Paying for it. In Profits, In Market share.
I bet they could use a little help from Congress, to help level that playing field. There are reasons why foreign workers are paid less than American Workers -- generally
their Costs of Living are much less. And SO Foreign Workers are easily exploited by Multi-National Corporations, who like to operate far from the rules and regulations of the Labor Relations Board, as pragmatically possible. Minimum Wage hah! Who needs that in Timbuktu? Where those with the Gold -- Make the Rules ...
Where are the Dems in this Battle for American Worker survival? In this Battle of the survival of the American Economic well-being vs the Corporate Profit well-being?
They used to be all over it. Not so long ago -- they even had clever-named Bills winding their way through Congress, designed to give American Workers a fighting chance.
Bills, that most of the American People, probably never even heard about.
S. 3977 Patriot Employers Bill -- Providing a Tax Cut to our Best Companies
durbin.senate.gov -- September 28, 2006
[...]
This legislation, which I am introducing today [Dick Durbin] along with Senators Obama and Brown, would provide a tax credit to reward the companies that treat American workers best. Companies that provide American jobs, pay decent wages; provide good benefits, and support their employees when they are called to active duty should enjoy more favorable tax treatment than companies that are unwilling to make the same commitment to American workers. The Patriot Employers tax credit would put the tax code on the side of those deserving companies by acknowledging their commitments.
The Patriot Employers legislation would provide a tax credit equal to 1 percent of taxable income to employers that meet the following criteria:
First, invest in American jobs, by maintaining or increasing the number of full-time workers in America relative to the number of full-time workers outside of America, by maintaining their corporate headquarters in America if the company has ever been headquartered in America, and by maintaining neutrality in union organizing drives.
Second, pay decent wages, by paying each worker an hourly wage that would ensure that a full-time worker would earn enough to keep a family of three out of poverty, at least $7.80 per hour.
[...]
And whatever happened to that Playing Field Leveling Bill?
S. 3977 thomas.loc.gov
Latest Major Action: 9/28/2006 Referred to Senate committee.
Status: Read twice and referred to the Committee on Finance.
Ahh yes, it went to a GOP led Finance Committee -- the place where all Good bills go to die. Usually with little to no fanfare. Chalk another one up for the Corporations.
What about more recent Legislation geared to keeping {returning} American Jobs to America?
Well there's this one. It has all sorts of Corporate enticements, to keep their Money and their Operations, in the USA -- without nearly the sting of actually helping workers. I guess it's just a sign of times. A sign of how far we've fallen, as a gainfully employed country.
Repatriation Tax Rate of 25% Planned by Nevada Democrat Berkley
by Steven Sloan, Bloomberg.com -- Jul 25, 2011
[...]
Representative Shelley Berkley, a Nevada Democrat, is the latest lawmaker to consider legislation allowing multinational companies to send offshore profits to the U.S. at a reduced tax rate. Her proposal, which was confirmed yesterday by Berkley’s communications director, David Cherry, would allow companies to return profits to the U.S. at a 25 percent tax rate, 10 percentage points below the maximum statutory rate.
Berkley’s openness is a sign of further thawing in Democratic opposition to a repatriation holiday, which they have argued would be a giveaway to companies that wouldn’t have to use the money to create jobs. As recently as 2009, 48 members of the Senate Democratic caucus opposed a proposed repatriation holiday.
[...]
"Incentivize" Jobs
The legislation would “incentivize the creation of new jobs at home by directly linking the rate at which these earnings are taxed with the expansion of a company’s payroll,” according to a summary of the bill that Berkley’s office has circulated. “Even a portion of this money returning to the United States will result in a sizable boost to our economy.”
Personally I'd like to see a Steep Tax on the Jobs Exporters. For every Dollar a Multi-National gains by sending an American Job overseas, they have to pay 90 cents of that Dollar to the IRS.
Half of that -- goes to dedicated Works program like the Infrastructure Bank, that Schumer and others are proposing.
Of course this would mean Putting American Workers first, and putting the Free Market principle of worker exploitation on the back burner. Which of course means it's probably not likely to happen, any time soon.
You see we're in a War. An Economic War. A chase for extreme Wealth War.
A Jingoism Ideology War. It's the American way. Slash and Burn. Discover and Exploit. Make a quick 100 Million Bucks -- and Buy an Island, and Retire. That's the NEW American Dream, that we've been sold. That we been told. You too can Be A Millionaire.
(So Don't Tax them. Not Now. Not ever.)
I know this is more Progressive whining Principle-taking. I know there are forces out there, more powerful than anything we can imagine. Military Superpowers tend to leave those money-drains, in their wake. I get it. But that Does.Not.Make.It -- Inequity, Right. Or smart.
BUT Still we got to show up for the Game -- No matter how out-matched we might be by the Opposing Team.
We got to suit up and get out on that Playing Field, even if the Wall Street Bookies are only giving our side 3 to 1 odds -- they say American Workers haven't got a chance of prevailing. But we've faced longer odds before.
BUT first you got to show up. Like they been doing in Wisconsin. First you got to realize this is War. The war for the American way of life. The War to leave our children a better world, than our parents left us.
Wouldn't it make a statement if President Obama, found 'those shoes' he was talking about -- put them on, and showed up in Madison, to take a stand against a Citizens United Corporate Take-over of a State. In our Country. It's not the only one. Koch Industries has Money to Burn. They aren't the only ones.
The Displaced Union Workers of Wisconsin are taking a stand. They are suiting up. They are showing up to play. Wouldn't be something if the President showed up too. As his distant rhetoric ... once said he'd do.
Of course that would mean President Barack Obama, would have to choose a side. Would have fill out his March Madness Bracket -- for this ongoing playoff between American Workers and the Cheap Labor overseas.
A battle that effects much, much more than a few weekends in March. It effects the Future of America.
But whether it's Sports, Politics, or the War being wage on the American Workforce
-- First you have to Pick which Side your on. The Red-Shirts or the Blue-Shirts?
Then you have to actually Show Up. And fight like hell.
That is how Champions are Made. ... Once made right here in America, everyday. Like those very productive, hard workers at New Balance. But for how much longer?
How much longer will America be the Home for such Workers? The Home of a once vibrant American Dream? A land full of Hope.
It looks like only the Free Market will tell ... and lately she's not been giving us very good Odds.
Those stoic Market Forces are giving us, the American Workers, far less than Half-a-Loaf, as per the standard arrangement. A company still has to make a Profit, don't they?
Deserted Islands -- aren't as cheap as they used to be ...