Busted

In remarks accompanying the release of the 2004 Economic Report of the President, Mankiw said that the transfer of U.S. white-collar service jobs overseas is just the latest manifestation of the gains from trade that economists have talked about for decades. He made clear his belief that this was a good thing, and his remarks were basically identical to words contained in the text of President Bushs Economic Report, which said When a good or service is produced more cheaply abroad, it makes more sense to import it than to make or provide it domestically.

Mankiws remarks touched off a firestormamong Republican leaders. Speaker of the U.S. House of Representatives Dennis Hastert (R-IL) hastily issued a statement stressing his disagreement with Mankiws remarks. Rep. Donald Manzullo (R-IL) called for Mankiws firing (or should we say downsizing?). Perhaps he was influenced by what he saw happening in his home base in Rockford, Illinois, where Motorola closed a plant that employed 1,000 and invested $1.9 million in a new facility in China. The White House made its position perfectly clear, by doing three things in three days: 1) scrambling to distance themselves from their own adviser and their own words; 2) saying jobs do matter and that the presidents policies will create them, and 3) backtracking on those claims by admitting that maybe the job creation picture isnt so rosy after all.

The policymakers are busted. The large and powerful corporations, the economists who provide the rationale for their actions and the politicians of both parties who support them believe what Mankiw articulated. If factory work can be done cheaper in Mexico or Vietnam, they ship off the jobs. If call centers can be operated at lower cost in India or the Philippines, theyll do it. If architectural plans or even X-rays can be analyzed by lower paid professionals in China, whats not for them to like? And if you object or raise concerns, then you are a protectionist.

Most real people who work for a living think that job creation and protectionyes, Ill use the word protectionof jobs and industries is a good thing. You dont have to be a raving leftist to understand the anger felt by loyal, patriotic working families who lived by the rules, worked hard and held up their end of the bargain. Mainstream working people have the common sense to want the dignity and opportunity that work brings. And they dont like it when greed overrides every other value in these countries we hold dear.

The simple truth is we got into our current economic crisisthe jobless recovery contradictionbecause the power structure betrayed working Americans. We let them negotiate foreign trade agreements with no way to stop the race to find the worlds lowest manufacturing wages, where bottom-feeding sharks like Wal-Mart could amass billions in profits by exporting our jobs and exploiting workers on all continents. They would even go to Antarctica if they could ever figure a way to get penguins to operate a drill press. This is what brought us to our current ridiculous status of being dependent on overseas manufacture of equipment indispensable to our national security.

For 30 years people like those in the White House told manufacturing workers not to worry because well retrain you. Now its their turn. We have to retrain them to understand that the implementation of policies by corporations and government that give away jobs to developing nations while leaving domestic workers to fend for themselves is insane and a betrayal of our national principles. With a little retraining during Election Year 2004, Ill bet elected officials of both parties can begin to comprehend it.

The issue of jobs is front and center this year. Its our job to keep it there. 

Edwin D. Hill

International President

  Presidents Message

March 2004 IBEW Journal