JAN. 28, 2014 -- On Morning Joe (1/28/14) it was all about raising the minimum wage. The President and Congress keep attacking the result instead of the cause. We believe the economists wag about the "worst recession." The recession has been over three and a half years. The trouble with the economy is that it is being offshored - research, technology, production, jobs.
economist Alan Blinder estimated in December 2006 that the U.S. would
offshore in the next ten years 30-40 million jobs. The economy suffers
not from a lack of consumer demand; its lack of consumer money. We are
offshoring payrolls. Washington acts like we're not supposed to compete
in globalization; that we must pursue the Council on Foreign Relations
and Trilateral Commission's policy of free trade. The competition in globalization
is closed markets (Japan and China), and Corporate America rushes to get
in to the soon to be world's largest market - China. The problem is to
limit the flow of Corporate America's offshoring enough to maintain a
strong economy. We can't continue as a world power unless we produce steel,
motor vehicles, machine tools, computers, etc - a strong economy.
Wall Street Journal (1/27/13)
headlines: "Steel Imports into the U.S. Surge". Highlighting
a weak economy, the article states: "There's no major source of steel
on the east coast anymore between Baltimore and New England." After
World War II, we closed production causing shortages in the Korean War.
President Truman called for the Defense Production Act of 1950, guaranteeing
the nation the materiel necessary for our security. Today the Defense
Production Act is ignored. Recently President Obama was begging Russia
for helicopters for Afghanistan. The New York Times (12/20/13)
reported on various countries furnishing the U.S. military with uniforms
and clothing. Now, BusinessWeek (2/2/14) headlines: "Factory
jobs are gone. Get over it." Corporate America is so intent on keeping
the China profits flowing that it opposes the President and Congress developing
a strong economy. A strong economy is not only needed for our defense
but for foreign policy.
Square in 1989, the U.S. obtained a Resolution in the United Nations to
investigate human rights in China. China went to its economic friends
in Africa and the Pacific and there has never been a hearing on the Resolution.
When Japan seized China's ship captain, China withheld rare earth supplies
from Japan. Japan promptly returned the ship captain. Today, nuclear weaponry
has equalized military power. In foreign affairs "it's the economy,
economy forbids increasing the national debt. The U.S. paid for all its
wars, depressions, recessions and it took over 200 years to reach a national
debt of $1 trillion in 1981. Now, the President and Congress act like
there is no need to pay for government - there is no need for a strong
economy. Given a balanced budget in 2001, Democrats and Republicans refused
to pay for wars, tax cuts, prescription drugs, stimulation, bailouts,
etc. and in thirteen years have increased the national debt $11.5 trillion.
Every Governor hustles for industrial investment but Washington acts like it's a given that the United States can't compete in globalization. The President and Congress neglect their duty of making it attractive for Corporate America to invest and produce in the United States.
The President and Congress must act like Governors:
what I hope to hear from President Obama's State of the Union.
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).
© 2014, Ernest F. Hollings. All rights reserved. Contact us for republication permission.
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