AUG. 17, 2012 -- Joe Scarborough constantly complains on Morning Joe: "The people hate big government." Grover Norquist wants to bring the government down to size so it can be "drowned in a bathtub."
Party takes the text "
that all men are endowed by their Creator
with certain inalienable Rights" - not the government. The Declaration
of Independence was from the Crown in England, not from constitutional
government. The government of the founding fathers adopted an industrial
policy to compete in globalization with the Tariff Act of 1787 - two years
before the Constitution. Yet to discuss an industrial policy to compete
in globalization is a "no no". Just when we need government,
politicians campaign against government.
years in the U.S. Senate I watched the tide go out for the U.S. economy.
In 1968 I passed the Textile Trade Bill by 68 votes. President Lyndon
Johnson had Congressman Wilbur Mills "deep six" the bill in
the Ways and Means Committee. The House never got to vote on the bill.
Four more of my Textile Trade Bills passed both Houses of Congress only
to be vetoed - one by President Carter; two by President Reagan; one by
President George W. H. Bush. In South Carolina today we have the skills
to make "the ultimate driving machine" for BMW and Boeing's
Dreamliner. But South Carolina has 9.3% unemployment. The textile industry
has been offshored.
Post and Courier (8/16/12) headlines on the front page: "Economic
Recovery Weakest in Decades." The story continues four columns on
page 9 describing every reason for the weak recovery but doesn't mention
offshoring. The Princeton Economist Alan Blinder in 2006 estimated that
the U.S. would offshore 30-40 million jobs in ten years. Annualizing last
month's creation of 163,000 jobs, this brings home the fact that we are
losing more jobs than we are creating. "Between 2007 and 2010 (U.S.
Firms) added 200,000 U.S. jobs and 600,000 outside the U.S. the government
estimates" David Wessell, Wall Street Journal (4/18/12).
is nothing more than a trade war with production looking for a country
cheaper to produce. Today China sets the competition in globalization
with controlled trade, and Corporate America comes running - offshoring
research, innovation, technology, production, jobs, payrolls - the economy.
The U.S. Chamber of Commerce, Wall Street, the big banks, and Corporate
America campaign against the government at home but builds China's government
States can't survive globalization unless our government develops our
industrial policy to maintain a strong economy. 150 countries compete
in globalization with a Value Added Tax that's rebated on exports. The
Corporate Tax is not rebated. The President and Congress must replace
the 35% Corporate Tax with a 7% VAT. Wall Street and Corporate America
want to keep the China profits flowing so they contribute to the President
and Congress not to develop our industrial policy - not to compete in
globalization. The Olympics proved that the United States was the most
competitive nation in the world. The President and Congress compete for
contributions but not for the country.
the Corporate Tax produced revenues of $181.1 billion. A 7% VAT for 2011
would have produced revenues of $872 billion. Since the VAT has no loopholes,
we have instant tax reform. Since the VAT is self-enforcing we can cut
the size of government (IRS). This tax cut creates millions of jobs, billions
to pay for government and jumpstarts the economy. But the President and
Congress refuse to compete with a tax cut that produces instant tax reform
and cuts the size of government.
Senator Hollings of South Carolina served 38 years in the United States Senate, and for many years was Chairman of the Commerce, Space, Science & Transportation Committee. He is the author of Making Government Work (University of South Carolina Press, 2008).
© 2012, Ernest F. Hollings. All rights reserved. Contact us for republication permission.
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