The Devolution of the United States Manufacturing Base

[Guest LAW_*]

The President signed a package of directives that will ensure the United States' export control policies and practices support the National Security Strategy of 2006, while facilitating the United States' continued international economic and technological leadership. These new directives will advance a more efficient and transparent export licensing process and enhance dispute resolution mechanisms. They will also help ensure proper levels of control for continued U.S. economic competitiveness and innovation while protecting national security. The Directives are intended to clarify and strengthen the ability of the U.S. Government to monitor and deny U.S. controlled goods, services or technologies to a potential enemy.

 

This does no good. Foreign Banks are buying American Companies at an alarming rate. They have found a loopholes in the United States Commerce laws created by the Bush and Clinton Administrations. Foreign banks are silent partners that hold no voting rights but require fixed equity interest payments back to them every year. These foreign investors place a CEO of their own national origin to come run the business for a short period of time, so they have to pay no taxes. What the foreign investor propaganda states is that they giving in return are jobs for America and helping grow our economy.

 

We are slowly becoming a non union country. Once this occurs Americans will begin losing more benifits and our current way of life. Foreign investors will be less benevolent to our country, because they have to worry about their own people. We can see from what has been posted that many American companies have no allegiance to America. These American companies have billionare CEOs with a huge foreign labor force. Soon Americans will be working weekends to just pay thier mortgage payment.

 

In my opinion, the only way we can stop this trend and just to buy from American Businesses that have no foreign investors and have to pay American taxes. Americans need to search for and promote American Only Businesses.

[Guest gino276]

these business leaders ought to be arrested for trying to steal hard working honest people out of their hard earned money!

[Guest LEFT IN THE DUST]

Why do you waste your times with this blubberish. This proves my point.

 

At a time when advertising spending in traditional media is declining, celebrity gossip titles such as Star, Us Weekly and In Touch Weekly are growing. That helped overall newsstand sales for magazines edge 1 percent higher, to $2.39 billion, in the first half of 2007.

 

Americans are to dumb to care what is going on. I just hope you do not migrate to my country.

[Guest Jeff in Arlington]

Why do you waste your times with this blubberish. This proves my point.

 

At a time when advertising spending in traditional media is declining, celebrity gossip titles such as Star, Us Weekly and In Touch Weekly are growing. That helped overall newsstand sales for magazines edge 1 percent higher, to $2.39 billion, in the first half of 2007.

 

Americans are to dumb to care what is going on. I just hope you do not migrate to my country.

 

 

Your insults neither help people view you or your country. Our economies are intertwined. What we need to do is examine this topic and what types of system is needed to shape and sustain the ideal american citizenry of tomorrow’s globalized world

[Guest DC 4 Obama]

Obama has a plan to bring prosperity back to our country. Here is is his plan

 

Be a Tough Negotiator for Smart Trade Agreements: The process of globalization is bringing millions of people into the global economy, increasing the efficiency of resource allocation through stronger capital markets, raising productivity by putting new technologies to work, and exploiting efficiencies of integrated supply networks. But globalization also leaves some Americans behind as patterns of production change, jobs relocate, and wage pressures intensify. Barack Obama supports trade agreements that lower prices for American consumers while also opening up fair and competitive markets for the sale of American-made goods and services abroad. Obama will ensure that trade agreements include strong labor and environmental protections and that all Americans share the rewards of globalization. As president, he will lead a proactive strategy to make sure that those who lose their jobs to globalization have the tools and resources to find other work and share in the benefits of the global marketplace.

 

Promote American Businesses Abroad: Trade can create wealth and drive innovation through competition. Barack Obama supports a trade policy that ensures our goods and services are treated fairly in foreign markets. At the same time, trade policy must stay consistent with our commitment to promote improved labor and environmental practices. In its first six years, the Bush Administration has filed only 16 cases to enforce its rights under WTO agreements. This compares to 68 cases filed during the first six years of the Clinton Administration. President Bush has failed to address the fact that China has engaged in ongoing currency manipulation that undercuts US exports; that China fails to enforce US copyrights and trademarks and that some of our competitors create regulatory and tax barriers to the delivery and sale of technology goods and services abroad. Barack Obama will fight for fair treatment of our companies abroad.

 

Protect American Intellectual Property Abroad: The Motion Picture Association of America estimates that in 2005, more than nine of every 10 DVDs sold in China were illegal copies. The U.S. Trade Representative said 80 percent of all counterfeit products seized at U.S. borders still come from China. Barack Obama will work to ensure intellectual property is protected in foreign markets, and promote greater cooperation on international standards that allow our technologies to compete everywhere.

 

Improve Transition Assistance: To help all workers adapt to a rapidly changing economy, Barack Obama would update the existing system of trade adjustment assistance by extending it to service industries, creating flexible education accounts that workers could use to retrain, and providing retraining assistance for workers in sectors of the economy vulnerable to dislocation before they lose their jobs.

[Luke_Wilbur]

I thought you all would like this quote:

 

I have come to a resolution myself as I hope every good citizen will, never again to purchase any article of foreign manufacture which can be had of American make be the difference of price what it may - Thomas Jefferson

[Guest John McCain 2008]

John McCain believes that globalization is an opportunity for American workers today and in the future. Ninety-five percent of the world's customers lie outside our borders and we need to be at the table when the rules for access to those markets are written. To do so, the U.S. should engage in multilateral, regional and bilateral efforts to reduce barriers to trade, level the global playing field and build effective enforcement of global trading rules.

[BlackSun]

John McCain is not a good answer. The reason why we are having problems stem from Republicans' general rule to "let the market decide," which appeals to my libertarian leanings but can cause real problems in a monopoly-type markets. If the United States cannot enforce a fair trade market how can we expect american industry to catch up. This is an interesting and important topic. I am forwarding this to some of my friends.

[Guest Yatra]

Most people I have spoken with have yet to contemplate the emergence of a Chinese, Arab or Hindu civilization that would usurp the dominance of western cultural and economic influence.

[Guest Dave Logan]

Free trade is currently a one way street: the US remains open while our competiton keeps their markets closed. Japan won't even buy our processed lumber and orange juice! Instead, they buy the raw materials and have the production done in Japan. So you can forget about them ever buying our cars, heavy equipment or any other product that has a domestic producer. America's strength is our military, yet we give this service away for free. We will continue to lose good jobs until we enforce a free market strategy that enables equal access for our own goods and services.

[Guest TAO of Pooh]

The global spread of lower-cost computing and Internet communications is breaking down the old geographic boundaries between labor markets, thus accelerating the pressure on lowering wages and reducting jobs in both the US service and manufacturing economy.

[Guest Steve Lorrin]

WOW. You are so right. Broadband is increasingly affordable in the developing world. The broadband gap between developed and developing markets is getting smaller. The lowest speed of digital subscriber line (DSL) service available in west European and North American markets costs households 1% or less of median monthly income. In many individual markets in Latin America, central and eastern Europe, and developing Asia, similar services demand the same or a slightly higher share of household budgets. We need to start building a low cost broadband access to rural communites, so they can better participate in the world economy.

[Guest bls.gov]

Manufacturing lost 28,000 jobs in January. Over the month, small declines occurred among many durable and nondurable goods industries. Manufacturing has lost 269,000 jobs over the past 12 months.

 

Technical information:

Household data: (202) 691-6378 USDL 08-0130

http://www.bls.gov/cps/

 

Establishment data: (202) 691-6555 Transmission of material in this release

http://www.bls.gov/ces/ is embargoed until 8:30 A.M. (EST),

 

Media contact: (202) 691-5902 Friday, February 1, 2008.

[Luke_Wilbur]

Manufacturing production, which accounts for about 82 percent of all industrial output, rose 4.1 percent at an annual rate in the third quarter of 2007, following a 4.3 percent increase in the second quarter. A strong gain in the output of high-technology goods led the overall manufacturing increase. The output of high-technology goods (computers, communications equipment, and semiconductors) grew by 28.5 percent at an annual rate, up from the second quarter’s 16.6 percent pace. Production of motor vehicles and parts–which can be very volatile–was up 1.3 percent at an annual rate after growing 13.3 percent at an annual rate in the second quarter of 2007. In the 12 months through October, output of motor vehicles and parts was up 0.9 percent. Apart from automobiles, manufacturing output increased at a 4.3 percent annual rate in the third quarter of 2007.

 

http://fms.treas.gov/bulletin/index.html

[Guest Dr. J. Alva Scruggs]

It was said when moving these manufacturing jobs that America will become a service economy which will more than make up for the manufacturing jobs that are moved to third world nations to cheaper labor. The only thing that has happened with this move to cheaper labor out of American is 1. Companies are making extremely obscene margins of profit, 2. The American workers are without a living income or a job living in increasing indebtedness and 3. Labor has loss their ability to bargain for fair wages with powerful companies!

 

Dr. J. Alva Scruggs, BS, MS, MA, EdD

Look Forward to Your Comments

E-MAIL JSCRU5750 (at) AOL.COM

Website ; www.franklyspeaking.info

[Guest Craig]

I genuinely think the citizenry of this country wants the United States to compete. If only our elected leaders weren't holding us back.

[Guest Jim]

The nation has squandered its productivity, the most important achievement next to innovation. The major innovation in recent years has been in lunatic option-laden adjustable mortgages, not much to write home about to mother lately. The major productivity has been in the assistance of outsourcing of job overseas by replacing US workers with advanced equipment. The nation is witnessing the vicious backfire of decades of destructive investment in unproductive assets, wasted productivity, and innovation in devices which kill the banking system.

[Guest Hirisho]

Alibaba.com, a B2B trading website site, is a national champion in China. Yahoo is financial partner with Alibaba. Our operational headquarters is based in Hangzhou in eastern China. Alibaba.com listed on the Hong Kong Stock Exchange on November 6, 2007 and is the flagship business of the Alibaba Group. Please visit our web site

 

http://www.alibaba.com/

 

Each day this country is losing business to manufacturers abroad. Each day American manufacturing companies are going out of business. I know some businesses that have folded myself. This country cannot survive on the service sector alone.

 

Why is this happenning?

 

The labor is cheaper abroad. That was the initial reason.

 

Little environment regulations. That was another.

 

No corporate tax. That was the big one.

 

If you do not believe me take a look at:

 

http://www.made-in-china.com/

 

Made-in-China.com is developed & operated by Focus Technology Co., Ltd. Focus Technology is a pioneer and leader in the field of electronic business in China. Founded in 1996, with the mission of enabling clients to drive cost down and increase sales and profits with effective web-based solutions, Focus Technology has helped many Chinese small-and-medium-sized enterprises compete in international trade, advance into new markets and meet the needs of their clients.

 

With the continuous growth of China export trade & internet users, Focus Technology decides to launch an online trade platform, Made-in-China.com. Made-in-China.com organizes and provides the most complete, accurate and valid information of China products & China suppliers. Nowadays, Made-in-China.com has already become a leading B2B portal especially in assisting global buyers and Chinese manufacturers to make contact and conduct international trade.

 

Now look at

 

http://www.census.gov/indicator/www/ustrade.html

 

U.S. International Trade in Goods and Services Highlights

January 11, 2008

 

Goods and Services Deficit Increases in November 2007

The Nation's international deficit in goods and services increased to $63.1 billion in November from $57.8 billion (revised) in October, as imports increased more than exports.

 

The Chinese government has declared textiles and apparel to be a "pillar industry of the nation" and has spent tens of billions of dollars to create an industrial sector that no nation on earth can compete in. This government intervention takes the form of currency undervaluation, handouts from government banks (loan forgiveness), subsidized utility, land and shipping costs, export tax rebates, tax holidays, direct industrial subsidization and many more etc.

 

The intense collaboration between the Chinese government and its textile and apparel sector enables Chinese exporters to underprice its other competitors, including countries like Bangladesh and India which have lower wage rates. According to United Nations data, China exports apparel products worldwide at average prices 58 percent below those of other countries. And in countries where quotas have not been used, China has taken between 60 and 85 percent of the apparel market. See the studies and analyses listed below for more information.

 

NCTO is a part of the Global Alliance for Fair Trade in Textiles (GAFTT), a coalition of 96 trade groups from 52 countries which are committed to ensuring that fair play and free markets govern world trade in textiles and apparel. GAFTT strongly opposes the Chinese government’s effort to monopolize world textile and apparel trade. Up to 30 million jobs around the world, mostly from developing and least developed countries, could be lost if China succeeds.

 

China’s mercantilist and predatory behavior also poses real questions for U.S. policymakers. These include:

 

1 ) Is it good for this country to tolerate an enormous economic power such as China that uses its government organs to undermine what we consider free market principles?

 

2 ) It is proper to let the Chinese government wreak havoc in our markets and our workers because its government has decided that it will do whatever its takes for its exporters to win the textile and apparel game?

 

3 ) Should millions of workers around the globe - and potentially hundreds of thousands in the US - be put out of their jobs because the Chinese government makes it impossible for their companies to thrive and prosper? Should Bangladesh, Indonesia, the Philippines, Turkey, Mexico and Caribbean nations lose billions of dollars in export earnings because their governments believe in free markets and China does not?

 

The long term consequences of the emergence of CHINA Inc - this intense collaboration of government and industry - should trouble anyone that believes in the free market and also that fair competition should be the ultimate arbiter of the marketplace.

 

Manufacturers made this country strong in the 20th century. Without manufacturers we will become what we define as a Third World Nation.

[Guest Bhuwan]

If China falls then along with it the world falls is the economic reality of the 21st century.

[Guest ALWAYS RED]

John McCain believes that globalization is an opportunity for American workers today and in the future. Ninety-five percent of the world's customers lie outside our borders and we need to be at the table when the rules for access to those markets are written. To do so, the U.S. should engage in multilateral, regional and bilateral efforts to reduce barriers to trade, level the global playing field and build effective enforcement of global trading rules.

 

Competitive American Workers: John McCain understands that globalization will not automatically benefit every American. We must prepare the next generation of workers by making American education worthy of the promise we make to our children and ourselves. We must be a nation committed to competitiveness and opportunity. We must fight for the ability of all students to have access to any school of demonstrated excellence. We must place parents and children at the center of the education process, empowering parents by greatly expanding the ability of parents to choose among schools for their children.

 

http://www.johnmccain.com

[Luke_Wilbur]

Northrop-EADS said its KC-30 will create 25,000 jobs across the country.

 

Boeing stated that the KC-767 would have supported 44,000 jobs accross the country.

 

That is 19,000 Jobs lost for Americans on one decision.

 

 

Republican Senator Sam Brownback said he was "shocked at this decision and very disappointed.

 

"I'll be calling upon the Secretary of Defense for a full debriefing and expect there will be a protest of the award by Boeing.

 

"It's stunning to me that we would outsource the production of these airplanes to Europe instead of building them in America.

 

Republican Representative Todd Tiahrt said he was "deeply troubled."

 

We should have an American tanker built by an American company with American workers.

 

I cannot believe we would create French jobs in place of Kansas jobs.

 

More information

 

Boeing loses 40 billion US deal to French Airbus, 40% of Jobs to go to European Countries

[Guest Speaker Nancy Pelosi]

President Bush is tied for the worst jobs record of any President since the Great Depression, and America has lost 3.4 million manufacturing jobs since 2001

[Guest AMTDA]

President Bush is tied for the worst jobs record of any President since the Great Depression, and America has lost 3.4 million manufacturing jobs since 2001

 

You failed to mention that the President signed a bi-partisan economic stimulus package (HR 5140), worth more than $165 billion for individuals and businesses. The American Machine Tool Distributors' Association views this agreement as a significant step in supporting the manufacturing industry, specifically machine tool businesses.

 

While many reports have focused on the individual rebates offered in the plan, Bush said such a growth package must also include tax incentives for business investment.

 

The President outlined several criteria for the package to meet, including that it must be “big enough to make a difference in an economy as large and dynamic as ours,” it must be built on “broad-based tax relief,” it must take effect right away but be temporary, and it must not include any tax increases.

 

One of the elements the AMTDA was most pleased with was tax incentives for businesses, including small companies, to make new and major investments this year. This is good news for machine tool businesses.

 

Specifically, the legislation provides for 50 percent bonus depreciation for investments made during 2008. Qualifying investments include furniture and business equipment and leasehold improvements. It provides for bonus depreciation of 50 percent of the cost plus first year depreciation in year one, with the balance depreciated as would otherwise have been required. There are also some transition rules that apply to projects that are included in binding contracts for 2008and placed in service by 1/1/2010.

 

Additionally, small businesses would be allowed to write off the entire cost of new investment expenditures up to $250,000. That is almost twice the current Section 179 expensing limit, and it would apply to companies with overall investments of less than $800,000 in 2008.

 

As an example, if a company purchases a new machine tool costing $100,000, the new law would allow the company to write off 57% of the asset in the first year; the first year depreciation of $50,000 plus the 14% of the regular depreciation on the remaining $50,000 ($7,000).

 

If a small business with less than $800,000 in total equipment purchases in 2008, for example, a machine costing $400,000, the bonus depreciation works out to about $335,000. The new Section 179 deduction allows for $250,000. In addition, the new law allows for the business to take a 50% bonus depreciation on the remaining cost, which works out to $75,000. Additionally, the business gets 14% on the remaining first year cost of the equipment ($75,000) which would be $10,500.

 

For more information on these new tax incentives, contact AMTDA at 301-738-1200.

[Guest Jason]

China's government said it approved plans by Intel Corp. to build a $2.5 billion semiconductor factory in the country, a potential milestone in China's efforts to attract high-technology investment.

 

Intel hasn't confirmed or denied it is planning the facility. But such a plant, if built, could mark a substantial advance over China's current semiconductor-manufacturing capability. As a result, the issue could prompt close scrutiny under U.S. export laws and provoke criticism from opponents of sending technology or manufacturing to China.

 

http://online.wsj.com/article/SB117377461012135302.html

[Guest Black Sun]

China's government said it approved plans by Intel Corp. to build a $2.5 billion semiconductor factory in the country, a potential milestone in China's efforts to attract high-technology investment.

 

That just great. I did not know this. Its a wonder our lawmakers allow this to happen when China's People's Liberation Army (PLA) doctrine sees computer network operations as a force multiplier in any confrontation with the United States. This is a critical national security issue because America's defense-critical electronics demand "trusted and classified" microchips. If our government allows this not only will we lose a precious skilled knowledge base, America will easily be manipulated by China. They are the biggest cyberwarfare player in the world.

 

Using a simple but elegantly modified "scanner program," the PLA's Titan Rain cyberwarriors identified network vulnerabilities in scores of Pentagon systems, including the critically important computers at the U.S. Army Information Systems Engineering Command at Fort Huachuca, Arizona; Defense Information Systems Agency in Arlington, Virginia; Naval Ocean Systems Center in San Diego, California; and Army Space and Strategic Defense Command in Huntsville, Alabama. The attacks were traced to a network in China's Guangdong Province, and the software and hacking techniques, according to one expert, identified it as a professional military operation. The hackers "were in and out with no keystroke errors and left no fingerprints, and created a backdoor in less than 30 minutes.

 

In 2006, Chinese intelligence agencies covertly attacked at least four separate U.S. government computer networks.

 

Sometime in the spring of 2006, State Department computers were shut down after software "backdoors" were discovered in the department's unclassified networks. Chinese hackers were using the backdoors to siphon off sensitive data dealing with China and North Korea.[31] It was later reported that hackers had penetrated the State Department by exploiting a zero-day flaw in Microsoft software. In connection with this discovery, congressional pressure obliged the State Department to discontinue purchasing computers from Lenovo, the Chinese firm that acquired IBM's personal computer division in 2005.

 

In July 2006, overseas hackers operating from Chinese Internet servers penetrated computers in the Department of Commerce's Bureau of Industry and Security (BIS), which manages export licensing of military-use products and information. "Through established security procedures, BIS discovered a targeted effort to gain access to BIS user accounts," according to a Commerce Department spokesman, and Commerce officials admitted privately that Chinese hackers had implanted covert "rootkit" programs to mask their presence and enable them to gain privileged access to the computer system. When the damage was assessed, said one unnamed official, the agency's information security officers determined that the workstations could not be salvaged and instead spent several million dollars to build an entirely new system with "clean hardware and clean software.

 

In mid-November 2006, computer security officials determined that Chinese military hackers had penetrated the unclassified computer network at the Naval War College in Rhode Island. Retired Air Force Major General Richard Goetze, a Naval War College professor, said the Chinese "took down" the entire Naval War College computer network--an operation that prompted the U.S. Strategic Command to raise the security alert level for the Pentagon's 12,000 computer networks and 5 million computers.

 

In 2007, a new spate of media reports of very sophisticated cyberattacks against U.S. and European government targets sparked renewed interest in China's military cyberwarfare capacity. In June, 150 computers in the $1.75 billion computer network at the Department of Homeland Security (DHS)--guardian of the nation's critical cyberinfrastructure--were quietly penetrated with programs that sent an unknown quantity of information to a Chinese-language Web site. Unisys Corporation, the manager of the DHS computers, allegedly covered up the penetration for three months.

 

In June 2007, Chinese military hackers circumvented the Defense Department's Titan Rain patches, again hitting a Pentagon network in the "most successful cyber attack against the US defense department," according to the Financial Times. The newspaper cited a source who said that there was a "very high level of confidence...trending towards total certainty" that the Chinese army was behind the attack.