Big 3 to Meet With Little Bush

[Mr.Krinkle]

BY JUSTIN HYDE, DET. FREE PRESS WASHINGTON BUREAU

Link-

On table: Health care, trade Sought: Help, not a bailout

WASHINGTON -

The meeting should "enhance the president's understanding of the importance of the domestic auto industry to the economic health of the United States," General Motors Vice Chairman Bob Lutz said in a recent interview, emphasizing the word "domestic."

Foreign automakers that build cars in the United States help the economy, "but it's not the same as a fully integrated American auto company that retains the intellectual property in the United States, has primarily American shareholders," he said, so "the wealth gets reinvested in the U.S."

Ford Chief Executive Alan Mulally said Friday of the meeting with Bush: "What I'm looking forward to is just sharing with him the state of our industry and also talking about competitiveness going forward."

All sides expect no firm commitments from the scheduled 45-minute session in the Roosevelt Room, which will include Treasury Secretary Henry Paulson and Al Hubbard, director of the National Economic Council.

.com.

Edited November 14, 2006 by Mr.Krinkle

[Mr.Krinkle]

http://www.detnews.com/apps/pbcs.dll/artic...0360/1020/rss09

WASHINGTON -- Key members of Michigan's congressional delegation urged the Big Three automakers to forcefully lay out their concerns to President Bush at the White House today.

The automakers' top lobbyists spent about an hour with Michigan lawmakers on the eve of the long-awaited meeting between Bush and the CEOs of General Motors Corp., Ford Motor Co. and DaimlerChrysler AG's Chrysler Group.

The Democrats -- who will take over the House and Senate in January -- made the case for "fair treatment" and a "level playing field."

Five million who bought our cars last year think they're relevant," GM's sales chief Mark LaNeve told The Detroit News in May. "Twenty million owners that we have just in our database probably think they're pretty relevant. The 1.1 million (GM) jobs are also voters and probably think it's pretty relevant."

U.S. Rep. John Dingell, D-Dearborn, said he wants to see a "change of attitude by the administration" seeking "fair treatment for Americans." The Big Three need to be "firm, forceful, strong and vigorous in their presentation," he said.

"There have been no steps taken by this administration to support manufacturing.

their competitors are not companies overseas. Their competitors are countries overseas," Carl Levin said.

With GM and Ford closing plants in many states and cutting thousands of jobs, the political influence of the Big Three is likely to wane.

Ford and GM have said they plan to cut 74,000 jobs and close more than two dozen plants. GM's former parts unit Delphi Corp. is in the middle of eliminating 23,000 jobs and closing 21 of 29 U.S. facilities as part of its bankruptcy reorganization.

wagoner actually mentioned some proof of it--first face but anyway. mullaly sees it too.

Fair trade and currency. The Big Three have suggested that South Korea, China and Japan depress the value of their currencies, making Asian automakers' products cheaper here. That's a claim the Japanese automakers deny.

U.S. Sen. Carl Levin of Detroit accused Bush of neglect toward manufacturers' problems, citing the loss of 3 million manufacturing jobs since 2000. "The auto leaders need to speak truth to power,"

Edited November 14, 2006 by Mr.Krinkle

[Mr.Krinkle]

http://www.bloomberg.com/apps/news?pid=con...id=ayYtn3cAgl64

I caught the interview after the meeting and it seemed to me from the way they LaSorda, Wagoner, Mullaly, were answering that Bush didnt care all that much.

They seemed to be most concerned with the issue of the yen and i think that was the impasse. of the meeting.

They stressed it was an open dialaogue and Wagoner made sure to let everyone know that Bush was "well briefed" on the issues (but that he has no clue what it means or even a remotely personal interest.--no, he didnt say that exactly)

[CARBIZ]

Democracies react far too slowly to threats from without and from within. At what point will policy makers wake up to the threat of all the job losses? First, we were told that blue collar jobs would give over to white collar service jobs and we swallowed that one. Then the white collar jobs were "outsourced" or sent over seas, too.

I think Wagoner and the gang realize that it is too late to get any help from their own government. Japan Inc. learned their lessons well from the near death experience of Chrysler 25 years ago when the UAW was able to whip up sympathy and create a public backlash. Much has been learned since then.

After many years of lobbying, posturing and strategic spending, Japan Inc has now convinced many of us that they are as American as Chevrolet and apple pie.

I just don't get it. I am all for Free Trade, but this is a joke. Toyota can borrow from the central bank in Japan at ZERO PERCENT, paid for the hapless middle class over there. They can hide behind national healthcare and an artifically low currency, yet Washington thinks Detroit has brought this on itself?

Free Trade means open borders. That means American companies should be able to set up shop any where in Japan, just as they can here. That is not the case.

We are auctioning off our retirement and one day soon the shots will be called in Tokyo or Beijing, not in Washington.

[Variance]

We are auctioning off our retirement and one day soon the shots will be called in Tokyo or Beijing, not in Washington.

215793[/snapback]

That's being a bit extreme, no?

[razoredge]

Gee, I dont know ? To a large degree that is already happening.

Good post carbiz, but myself.........I say screw "free trade" it has only helped other countries mass populations and hurt ours. After all, that is the purpose of having a government "to serve and protect". Where in the hell did free trade serve and protect the majority of the American population ?

[CARBIZ]

Is it? America thought she was strong enough to drag Europe and Japan into the 20th century - and 60 years ago America was strong enough.

But that was then when internal forces tended to pull the same way. Now, with internal forces pulling in all different directions, outside forces (Japan Inc., Korea, etc.) are realizing how to use democracy's weaknesses against it.

The UAW may try to steal the limelight with respect to lost (or shifting) jobs from Detroit to Japan Inc, but the real threat is with the patents and loss of intellectual property/technology.

Does America have the sheer bulk to heft both China and India, plus Mexico and others into the 21st century? I think not. The middle class in America is starting to groan under the weight of it. When the bill from Iraq comes to be paid, things could get ugly.

Washington is in no mood to anger trading partners when it really doesn't have many options left to it. Foreign governments are financing the war in Iraq, as long as they keep buying T-bills.

The future is technology. We live in an age of science and technology, yet many of us can't program a VCR (or DVD recorder.) If we lose the technology to foreign interests because we are too lazy or complacent to support our local business, then shame on us.

Try and buy an American made DVD, plasma TV or radio. Once, they were merely manufactured over there. Now, they are designed and researched over there. If not for the American military propping up many of the high technology areas of the economy here, we would be losing even more of the high end jobs.

I read somewhere a few years back that the Pentagon was worried about all flat screen technology being lost - where would they get their touch screens for the fighter jets?

I have made this point before: manufacturing is the backbone of any industrial economy. In the next global war - where will America get its tanks and weapons from, if most of the plants here are owned by off-shore companies?

[Mr.Krinkle]

That's being a bit extreme, no?

If trade policies or unfair business practices create an unfair business playing ground, and an administration makes no attempt to even out the competetive disadvantage thats been handed to you from the git go then youre gonna be screwed.

The Japanese make more money selling less cars because they are not experiencing the same economic conditions. They get the extra chang from the lucrative currency and trade rates and in turn invest and prepare the nest egg. All the while Detroits busy checking the cushions in the corporate lounges couch.

If it continues and the lost profit (profit irregularitues/discrepanciesbecause less is being spent to gain more) will continue to inhibit and jeopardize the future cycles of product. Its not only produt, greed and incompetency thats at fault.

so basically what this means is that if nothing is done to help solve any of the 2 or 3 real remaining fundamental issues is that the only chevy youll see in the future will be spelled with an "r."

their competitors are not companies overseas. Their competitors are countries overseas,"

An horribly bleak forecast. But sadly hard to argue at this point.

Is it?  America thought she was strong enough to drag Europe and Japan into the 20th century - and 60 years ago America was strong enough.

  But that was then when internal forces tended to pull the same way.  Now, with internal forces pulling in all different directions, outside forces (Japan Inc., Korea, etc.) are realizing how to use democracy's weaknesses against it.

  The UAW may try to steal the limelight with respect to lost (or shifting) jobs from Detroit to Japan Inc, but the real threat is with the patents and loss of intellectual property/technology.

  Does America have the sheer bulk to heft both China and India, plus Mexico and others into the 21st century?  I think not.  The middle class in America is starting to groan under the weight of it.  When the bill from Iraq comes to be paid, things could get ugly.

  Washington is in no mood to anger trading partners when it really doesn't have many options left to it.  Foreign governments are financing the war in Iraq, as long as they keep buying T-bills.

  The future is technology.  We live in an age of science and technology, yet many of us can't program a VCR (or DVD recorder.)  If we lose the technology to foreign interests because we are too lazy or complacent to support our local business, then shame on us.

  Try and buy an American made DVD, plasma TV or radio.  Once, they were merely manufactured over there.  Now, they are designed and researched over there.   If not for the American military propping up many of the high technology areas of the economy here, we would be losing even more of the high end jobs.

  I read somewhere a few years back that the Pentagon was worried about all flat screen technology being lost - where would they get their touch screens for the fighter jets?

I have made this point before: manufacturing is the backbone of any industrial economy.  In the next global war - where will America get its tanks and weapons from, if most of the plants here are owned by off-shore companies?

215840[/snapback]

Edited November 15, 2006 by Mr.Krinkle

[razoredge]

I understand and agree with what you are saying........but ! We will still always have this increasing population that is not up for technology jobs, we are not going to have an entire population of engineers, technicians, and architects. Besides how many positions are there really? Unfortunantly (so it seems ? ) we still have the full spectrum of humans, much unchanged since the beginning of history.

Somehow placeing the "unwanted" in trailor parks or deep inside the inner urban areas and throwing welfare checks at them doesnt seem like the answer in this here "evolved, modern, compassionate, tolerant, bleeding heart so long as I cant see it from my house - - Society "....... all the while complaining about how "that area has gone all to hell"

Ah gee.........I wonder why ?

We need to realize we need a society that places white collar and blue collar people back together. Working together for a common goal and that is the best country for all to raise their children in. Not a country full of white collar workers trying to figure out how to perform politically correct genecide on the laboring work force.

[mustang84]

Democracies react far too slowly to threats from without and from within.  At what point will policy makers wake up to the threat of all the job losses?  First, we were told that blue collar jobs would give over to white collar service jobs and we swallowed that one.  Then the white collar jobs were "outsourced" or sent over seas, too.

  I think Wagoner and the gang realize that it is too late to get any help from their own government.  Japan Inc. learned their lessons well from the near death experience of Chrysler 25 years ago when the UAW was able to whip up sympathy and create a public backlash.  Much has been learned since then.

  After many years of lobbying, posturing and strategic spending, Japan Inc has now convinced many of us that they are as American as Chevrolet and apple pie.

  I just don't get it.  I am all for Free Trade, but this is a joke.  Toyota can borrow from the central bank in Japan at ZERO PERCENT, paid for the hapless middle class over there.  They can hide behind national healthcare and an artifically low currency, yet Washington thinks Detroit has brought this on itself?

  Free Trade means open borders.  That means American companies should be able to set up shop any where in Japan, just as they can here.  That is not the case.

  We are auctioning off our retirement and one day soon the shots will be called in Tokyo or Beijing, not in Washington.

215793[/snapback]

Good post. In my Chinese architecture history class, my professor (who grew up in China but escaped after the Communist revolution and came to the US) has been teaching us how China fell into decline and believes that they are now emerging and will be the next world superpower within 25 years. Chinese civilization declined in the 18th century due to complacency and unwillingness to compete...and the US is doing the same thing today. We are complacent as a country, our debt is being bought up by foreign companies, we're outsourcing jobs, money is being spent in the wrong places, our infrastructure continues to rot, the education system is falling behind the rest of the world...and the general public doesn't even blink an eye.

He says it is up to our generation to keep the US from becoming another failed civilization like 18th century China...pretty strong words, but I think there is some truth to them.

[bowtie_dude]

Gee, I dont know ? To a large degree that is already happening.

Good post carbiz, but myself.........I say screw "free trade" it has only helped other countries mass populations and hurt ours. After all, that is the purpose of having a government "to serve and protect". Where in the hell did free trade serve and protect the majority of the American population ?

215832[/snapback]

Cheaper goods, off the top of my head.

[Mr.Krinkle]

I understand and agree with what you are saying........but ! We will still always have this increasing population that is not up for technology jobs, we are not going to have an entire population of engineers, technicians, and architects. Besides how many positions are there really? Unfortunantly (so it seems ? ) we still have the full spectrum of humans, much unchanged since the beginning of history.

Somehow placeing the "unwanted" in trailor parks or deep inside the inner urban areas and throwing welfare checks at them doesnt seem like the answer in this here "evolved, modern, compassionate, tolerant, bleeding heart so long as I cant see it from my house - - Society ".......   all the while complaining about how "that area has gone all to hell"

Ah gee.........I wonder why ?

We need to realize we need a society that places white collar and blue collar people back together. Working together for a common goal and that is the best country for all to raise their children in. Not a country full of white collar workers trying to figure out how to perform politically correct genecide on the laboring work force.

215876[/snapback]

If everything gets outsourced you become completely reliant upon outside help.

In a way we as a country are willingly accepting this because no effort is being made to prevent it from happening. In fact we practically promote it.

If you can go to a Walmart for instance and spend half of what you normally do on something -- why shouldnt you? Its more money in your own pocket. Policies that enable lower prices from outside countries leaves a domestic company with with no real motivation or even opportunity to remain competetive and profitable. Theres too much incentive not too. Its not UNICEF.

The atmosphere now is such that its o.k. to support this.

The problem is it will one day bite us on the ass. What if t.v. manufacturers decided to jack up the price 10 fold, they could because wheres the competetion? Sure someone would pick up the slack... but when. and dont tell me people would stop buying t.v.'s. for example. jobs are heedlessly sent away from this country not because no one will do them but because they will do them cheaper from somewhere else.

Same goes for cars. Its a technology and a neccessity and it serves the best interests of everyone involved. Why the indifference or disinterestdness exists is beyond me.

Carbiz brings up a lot of good points and reasons why as a country we have to be self sustaining in many regards.

$h!, we have enough food to feed the world--and we practically do. Why it stops there again is beyond me.

Edited November 15, 2006 by Mr.Krinkle

[regfootball]

yeah, we'll go in the tank, but as long as our people have the desire to remain on top, i think SOMEDAY the wake up bell will sound. the big problem is we need to change our business culture. so many deify our groosly overpaid executives. maybe what we need to do is burn them at the stake.

We're all so fking jacked because Bill Ford had the balls to bring in Alan Mullally to run his company because he himself failed at it. Now we find out the massive incompetence they have at running an organization. Well, why don't we just clean house of all the overpaid nimrods and birng in some people who want to get to work and get something done right. And they would probably do it for less.

I heard that Ann Fields was bitching about Ford the way it was run now that she's gone. Did she ever stop to think maybe she was a BIG PART OF THE PROBLEM? Maybe she should give half her pay back.

Edited November 15, 2006 by regfootball

[Mr.Krinkle]

SOMEDAY the wake up bell will sound.

it should be going off now.

Is it? America thought she was strong enough to drag Europe and Japan into the 20th century - and 60 years ago America was strong enough.

But that was when internal forces tended to pull the same way. Now, with internal forces pulling in all different directions, outside forces (Japan Inc., Korea, etc.) are realizing how to use democracy's weaknesses' against it.

The UAW may try to steal the limelight with respect to lost (or shifting) jobs from Detroit to Japan Inc, but the real threat is with the patents and loss of intellectual property/technology.

Does America have the sheer bulk to heft both China and India, plus Mexico and others into the 21st century? I think not. The middle class in America is starting to groan under the weight of it. When the bill from Iraq comes to be paid things could get ugly.

Washington is in no mood to anger trading partners when it really doesn't have many options left to it. Foreign governments are financing the war in Iraq, as long as they keep buying T-bills.

The future is technology. We live in an age of science and technology, yet many of us can't program a VCR (or DVD recorder.)

If we lose the technology to foreign interests because we are too lazy or complacent to support our local business then shame on us.

Try and buy an American made DVD, plasma TV, or radio. Once, they were merely manufactured over there. Now, they are designed and researched over there. If not for the American military propping up many of the high technology areas of the economy here we would be losing even more of the high end jobs.

I read somewhere a few years back that the Pentagon was worried about all flat screen technology being lost - where would they get their touch screens for the fighter jets?

I have made this point before: Manufacturing is the backbone of any industrial economy. In the next global war where will America get its tanks and weapons from, if most of the plants are owned by off-shore companies?

Because I think its important the follow up joint statement:

Edited November 15, 2006 by Mr.Krinkle

[Mr.Krinkle]

Because I think its important the follow up joint statement:

Today, 04:20 PM

WASHINGTON, DC - We appreciate the President meeting with us today on issues that we believe are not only critical to the domestic auto industry, but also affect overall American manufacturing competitiveness.

We had a candid and productive discussion on such specific issues as energy security, the affordability and quality of health care, the trade imbalance caused by an artificially weak yen, and the rising costs of vehicle production materials.

http://media.gm.com/servlet/GatewayServlet...=74&docid=30349

....Overall, we were pleased with the exchange we had with the President and came away with a clear impression that he understands how vital these issues are to the American economy and our ability to compete successfully in the global marketplace. We welcome the opportunity to work with him, his Administration, and the Congress in a bipartisan manner and to move forward on solutions to these issues while continuing to do our part to ensure America's long-standing leadership in manufacturing and innovation.

[the_yellow_dart]

I understand and agree with what you are saying........but ! We will still always have this increasing population that is not up for technology jobs, we are not going to have an entire population of engineers, technicians, and architects. Besides how many positions are there really? Unfortunantly (so it seems ? ) we still have the full spectrum of humans, much unchanged since the beginning of history.

Somehow placeing the "unwanted" in trailor parks or deep inside the inner urban areas and throwing welfare checks at them doesnt seem like the answer in this here "evolved, modern, compassionate, tolerant, bleeding heart so long as I cant see it from my house - - Society ".......   all the while complaining about how "that area has gone all to hell"

Ah gee.........I wonder why ?

We need to realize we need a society that places white collar and blue collar people back together. Working together for a common goal and that is the best country for all to raise their children in. Not a country full of white collar workers trying to figure out how to perform politically correct genecide on the laboring work force.

215876[/snapback]

This is not always true. You just have to find the right blue collar jobs. I went to 4 years of engineering school, and got a good job at a Toronto software development company, with comparable salaries to competitors. My friend from back home took a crane operating course for 6 months (paid for by the company), and is now a crane operator. He makes more than I do. So, why did I pay that $24,000 worth of tuition anyways??

[razoredge]

This is not always true. You just have to find the right blue collar jobs. I went to 4 years of engineering school, and got a good job at a Toronto software development company, with comparable salaries to competitors. My friend from back home took a crane operating course for 6 months (paid for by the company), and is now a crane operator. He makes more than I do. So, why did I pay that $24,000 worth of tuition anyways??

216216[/snapback]

Not everybody can be a crane operator, there is only so many of those jobs too.

That is the highest rate operators job and few can pass the test, either you have it or you dont, it only takes 6 months to weed out the crowd. Those that dont show potential, time is not wasted on. I know guys that are qualified and wont get back in a crane. Turned and walked away, I was in route myself, and walked away but thats me and my reasons. What I can tell you is you have the lives of hundreds of men in your hands, and long dedicated work days. Dont sneeze, dont cough, dont get sick, dont blink, dont have to go paa paa. As a crane operator he is at the head of his field, where are you ? I assume you have room for growth to be the "big operator" in your field ? Long term you will be far better off, you'll see.

You did not pay $24,000 on tuition so you could be worth more than somebody else at your will. You payed it so you could be worth more than what you were. You payed it so you could pursue a career of your choise with options. From that point on your income will follow suit with what you are capable of. If it doesnt work out, quit and go to crane school :AH-HA_wink:

Construction usually does pay good money, But that comes at a cost, the long term of which far excedes a 4 year ed. Usually its about not haveing a life. Usually about 12 hour days. Sometimes a 2hr drive chasing the work (4 total 12+4 = 16 24-16 = ?). Sometimes spending the week away from home. Loosing your wife and family. I have been struggling within the construction industry for roughly 6 years and let me tell you .........I HATE IT !. Its like a prison sentence, like a rat in a cage, like being owned, being someone elses bitch. The pay check doesnt come close to buying your life back. Some guys love it.

[razoredge]

Because I think its important the follow up joint statement:

Today, 04:20 PM

WASHINGTON, DC - We appreciate the President meeting with us today on issues that we believe are not only critical to the domestic auto industry, but also affect overall American manufacturing competitiveness.

We had a candid and productive discussion on such specific issues as energy security, the affordability and quality of health care, the trade imbalance caused by an artificially weak yen, and the rising costs of vehicle production materials.

http://media.gm.com/servlet/GatewayServlet...=74&docid=30349

....Overall, we were pleased with the exchange we had with the President and came away with a clear impression that he understands how vital these issues are to the American economy and our ability to compete successfully in the global marketplace. We welcome the opportunity to work with him, his Administration, and the Congress in a bipartisan manner and to move forward on solutions to these issues while continuing to do our part to ensure America's long-standing leadership in manufacturing and innovation.

216208[/snapback]

SO in summary........they had one great big.............yes man, meeting and now we will be back to business as usual.........which is ........what again ?

forgive me but I feel the need to add one of these

[haypops]

If too political, then I apologize and ask the moderator to remove.

Ernie

-----------------------------------------------------

The Wall Street Journal

November 15, 2006 Wednesday

Pg. A18

American Workers Have a Chance To Be Heard

By Jim Webb

The most important -- and unfortunately the least

debated -- issue

in politics today is our society's steady drift toward

a class-based

system, the likes of which we have not seen since the

19th century.

America's top tier has grown infinitely richer and

more removed over

the past 25 years. It is not unfair to say that they

are literally

living in a different country. Few among them send

their children to

public schools; fewer still send their loved ones to

fight our wars.

They own most of our stocks, making the stock market

an unreliable

indicator of the economic health of working people.

The top 1% now

takes in an astounding 16% of national income, up from

8% in 1980.

The tax codes protect them, just as they protect

corporate America,

through a vast system of loopholes.

Incestuous corporate boards regularly approve

compensation packages

for chief executives and others that are out of

logic's range. As

this newspaper has reported, the average CEO of a

sizeable

corporation makes more than $10 million a year, while

the minimum

wage for workers amounts to about $10,000 a year, and

has not been

raised in nearly a decade. When I graduated from

college in the

1960s, the average CEO made 20 times what the average

worker made.

Today, that CEO makes 400 times as much.

In the age of globalization and outsourcing, and with

a vast

underground labor pool from illegal immigration, the

average

American worker is seeing a different life and a

troubling future.

Trickle-down economics didn't happen. Despite the

vaunted all-time

highs of the stock market, wages and salaries are at

all-time lows

as a percentage of the national wealth. At the same

time, medical

costs have risen 73% in the last six years alone. Half

of that

increase comes from wage-earners' pockets rather than

from

insurance, and 47 million Americans have no medical

insurance at

all.

Manufacturing jobs are disappearing. Many earned

pension programs

have collapsed in the wake of corporate

"reorganization." And

workers' ability to negotiate their futures has been

eviscerated by

the twin threats of modern corporate America: If they

complain too

loudly, their jobs might either be outsourced overseas

or given to

illegal immigrants.

This ever-widening divide is too often ignored or

downplayed by its

beneficiaries. A sense of entitlement has set in among

elites,

bordering on hubris. When I raised this issue with

corporate leaders

during the recent political campaign, I was met

repeatedly with

denials, and, from some, an overt lack of concern for

those who are

falling behind. A troubling arrogance is in the air

among the

nation's most fortunate. Some shrug off large-scale

economic and

social dislocations as the inevitable byproducts of

the "rough road

of capitalism." Others claim that it's the fault of

the worker or

the public education system, that the average American

is simply not

up to the international challenge, that our education

system fails

us, or that our workers have become spoiled by old

notions of

corporate paternalism.

Still others have gone so far as to argue that these

divisions are

the natural results of a competitive society.

Furthermore, an

unspoken insinuation seems to be inundating our

national debate:

Certain immigrant groups have the "right genetics" and

thus are

natural entrants to the "overclass," while others, as

well as those

who come from stock that has been here for 200 years

and have not

made it to the top, simply don't possess the necessary

attributes.

Most Americans reject such notions. But the true

challenge is for

everyone to understand that the current economic

divisions in

society are harmful to our future. It should be the

first order of

business for the new Congress to begin addressing

these divisions,

and to work to bring true fairness back to economic

life. Workers

already understand this, as they see stagnant wages

and disappearing

jobs.

America's elites need to understand this reality in

terms of their

own self-interest. A recent survey in the Economist

warned that

globalization was affecting the U.S. differently than

other "First

World" nations, and that white-collar jobs were in as

much danger as

the blue-collar positions which have thus far been

ravaged by

outsourcing and illegal immigration. That survey then

warned

that "unless a solution is found to sluggish real

wages and rising

inequality, there is a serious risk of a protectionist

backlash" in

America that would take us away from what they view to

be

the "biggest economic stimulus in world history."

More troubling is this: If it remains unchecked, this

bifurcation of

opportunities and advantages along class lines has the

potential to

bring a period of political unrest. Up to now, most

American workers

have simply been worried about their job prospects.

Once they

understand that there are (and were) clear

alternatives to the

policies that have dislocated careers and altered

futures, they will

demand more accountability from the leaders who have

failed to

protect their interests. The "Wal-Marting" of cheap

consumer

products brought in from places like China, and the

easy money from

low-interest home mortgage refinancing, have softened

the blows in

recent years. But the balance point is tipping in both

cases, away

from the consumer and away from our national interest.

The politics of the Karl Rove era were designed to

distract and

divide the very people who would ordinarily be

rebelling against the

deterioration of their way of life. Working Americans

have been

repeatedly seduced at the polls by emotional issues

such as the

predictable mantra of "God, guns, gays, abortion and

the flag" while

their way of life shifted ineluctably beneath their

feet. But this

election cycle showed an electorate that intends to

hold government

leaders accountable for allowing every American a fair

opportunity

to succeed.

With this new Congress, and heading into an important

presidential

election in 2008, American workers have a chance to be

heard in ways

that have eluded them for more than a decade. Nothing

is more

important for the health of our society than to grant

them the

validity of their concerns. And our government leaders

have no

greater duty than to confront the growing unfairness

in this age of

globalization.

[ellives]

I think this is one of the reasons he was able to get elected. Good for him. Let's see if the Dems can get something done in 2 years.

If too political, then I apologize and ask the moderator to remove.

Ernie

-----------------------------------------------------

The Wall Street Journal

November 15, 2006 Wednesday

Pg. A18

American Workers Have a Chance To Be Heard

By Jim Webb

The most important -- and unfortunately the least

debated -- issue

in politics today is our society's steady drift toward

a class-based

system, the likes of which we have not seen since the

19th century.

America's top tier has grown infinitely richer and

more removed over

the past 25 years. It is not unfair to say that they

are literally

living in a different country. Few among them send

their children to

public schools; fewer still send their loved ones to

fight our wars.

They own most of our stocks, making the stock market

an unreliable

indicator of the economic health of working people.

The top 1% now

takes in an astounding 16% of national income, up from

8% in 1980.

The tax codes protect them, just as they protect

corporate America,

through a vast system of loopholes.

Incestuous corporate boards regularly approve

compensation packages

for chief executives and others that are out of

logic's range. As

this newspaper has reported, the average CEO of a

sizeable

corporation makes more than $10 million a year, while

the minimum

wage for workers amounts to about $10,000 a year, and

has not been

raised in nearly a decade. When I graduated from

college in the

1960s, the average CEO made 20 times what the average

worker made.

Today, that CEO makes 400 times as much.

In the age of globalization and outsourcing, and with

a vast

underground labor pool from illegal immigration, the

average

American worker is seeing a different life and a

troubling future.

Trickle-down economics didn't happen. Despite the

vaunted all-time

highs of the stock market, wages and salaries are at

all-time lows

as a percentage of the national wealth. At the same

time, medical

costs have risen 73% in the last six years alone. Half

of that

increase comes from wage-earners' pockets rather than

from

insurance, and 47 million Americans have no medical

insurance at

all.

Manufacturing jobs are disappearing. Many earned

pension programs

have collapsed in the wake of corporate

"reorganization." And

workers' ability to negotiate their futures has been

eviscerated by

the twin threats of modern corporate America: If they

complain too

loudly, their jobs might either be outsourced overseas

or given to

illegal immigrants.

This ever-widening divide is too often ignored or

downplayed by its

beneficiaries. A sense of entitlement has set in among

elites,

bordering on hubris. When I raised this issue with

corporate leaders

during the recent political campaign, I was met

repeatedly with

denials, and, from some, an overt lack of concern for

those who are

falling behind. A troubling arrogance is in the air

among the

nation's most fortunate. Some shrug off large-scale

economic and

social dislocations as the inevitable byproducts of

the "rough road

of capitalism." Others claim that it's the fault of

the worker or

the public education system, that the average American

is simply not

up to the international challenge, that our education

system fails

us, or that our workers have become spoiled by old

notions of

corporate paternalism.

Still others have gone so far as to argue that these

divisions are

the natural results of a competitive society.

Furthermore, an

unspoken insinuation seems to be inundating our

national debate:

Certain immigrant groups have the "right genetics" and

thus are

natural entrants to the "overclass," while others, as

well as those

who come from stock that has been here for 200 years

and have not

made it to the top, simply don't possess the necessary

attributes.

Most Americans reject such notions. But the true

challenge is for

everyone to understand that the current economic

divisions in

society are harmful to our future. It should be the

first order of

business for the new Congress to begin addressing

these divisions,

and to work to bring true fairness back to economic

life. Workers

already understand this, as they see stagnant wages

and disappearing

jobs.

America's elites need to understand this reality in

terms of their

own self-interest. A recent survey in the Economist

warned that

globalization was affecting the U.S. differently than

other "First

World" nations, and that white-collar jobs were in as

much danger as

the blue-collar positions which have thus far been

ravaged by

outsourcing and illegal immigration. That survey then

warned

that "unless a solution is found to sluggish real

wages and rising

inequality, there is a serious risk of a protectionist

backlash" in

America that would take us away from what they view to

be

the "biggest economic stimulus in world history."

More troubling is this: If it remains unchecked, this

bifurcation of

opportunities and advantages along class lines has the

potential to

bring a period of political unrest. Up to now, most

American workers

have simply been worried about their job prospects.

Once they

understand that there are (and were) clear

alternatives to the

policies that have dislocated careers and altered

futures, they will

demand more accountability from the leaders who have

failed to

protect their interests. The "Wal-Marting" of cheap

consumer

products brought in from places like China, and the

easy money from

low-interest home mortgage refinancing, have softened

the blows in

recent years. But the balance point is tipping in both

cases, away

from the consumer and away from our national interest.

The politics of the Karl Rove era were designed to

distract and

divide the very people who would ordinarily be

rebelling against the

deterioration of their way of life. Working Americans

have been

repeatedly seduced at the polls by emotional issues

such as the

predictable mantra of "God, guns, gays, abortion and

the flag" while

their way of life shifted ineluctably beneath their

feet. But this

election cycle showed an electorate that intends to

hold government

leaders accountable for allowing every American a fair

opportunity

to succeed.

With this new Congress, and heading into an important

presidential

election in 2008, American workers have a chance to be

heard in ways

that have eluded them for more than a decade. Nothing

is more

important for the health of our society than to grant

them the

validity of their concerns. And our government leaders

have no

greater duty than to confront the growing unfairness

in this age of

globalization.

216303[/snapback]

[razoredge]

Thanks Haypops

It good to read someone doing a better job at saying what I try to explain. that guy put it together pretty good and brought all the factors into it.

Sad thing is it will always be business as usual. This started many administrations ago, both Demo and Repo, neither give a crap, the current agenda is what suits their own and their families futures and desires. Our country is run by exec's... who would expect them to put their brother exec's in jepordy.

Doesnt anyone remember back in the early 90's, down in Brazil they were undergoing some insane level of inflation, I cant remember the details so I wont give figures but it was crazy. Many of our "economists" and large campus economic professors were flocking down there to "learn". My uncle was one of them......from Ohio State. 60 minutes did a piece on it too.

This whole thing has been carefully orchestrated and well planed, in advance, its not something that just happened and everybody "went with it"

Sell your house, your car and all that you own and you too will think your rich. Problem is you'll have no place to live. Wasnt hard gettin rich selling off the America our post war heros built from sweat and blood. It was a piece of cake, a walk in the park.

That CEO from General Electric, cant think of his name, was one of the first to impliment this profitable "down sizeing" Did wonders for share holders. Jack ? Jack Welch ? Cnat remember

Edited November 16, 2006 by razoredge

[regfootball]

there was a family that was held hostage in a well to do suburb here recently. then, the gunman/whatever forced them into a car and to go to the bank and withdraw money to rob.

the family that was victimized, it was a CEO of a corporation.

my guess, is this is not the only incident like this that has or will happen. My bet is it increases.

and i think its a product of the widening gap. you don't condone or want to see it happen, but in some ways those 'competitive' execs might find out that open hostility and crime towards them will become an ever increasing part of the 'competitive environment'.