In Columbus Ohio, a 5-year-old girl jumped onto Santa’s lap last month and asked if he could give her dad a job as an elf.
Mike Smith, who works the Santa station at the Polaris Fashion Place in Columbus, asked why, the Wall Street Journal reported. The little girl in the Dora-the-Explorer sweat shirt responded:
“Because my daddy’s out of work, and we’re about to lose our house.”
Happy Holidays America.
The gift this country needs most this holiday season is an economy built on a solid foundation, one that will provide middle class, family-supporting jobs now and into the future.
That present would not be another version of Monopoly for Wall Street wannabees. It would not be Barbie-goes-to-the-mall-credit-cards for youngsters in families already maxed out on their plastic and their mortgages.
The metaphorical gift our economy could really use is an Erector set – a strong steel construction kit from which the intrepid manufacture airplanes, automobiles, robots on motorized tracks, backhoes, helicopters, skyscrapers, cranes, even working Ferris wheels.
That’s because, most of all, this economy needs manufacturing. Enthralled by the glitz, glamour and bogus bonuses of Wall Street, we’ve allowed multinationals to export our grit and grimy factories overseas. Factories that made clothing, sports shoes, large appliances, tire, glass and so much more in big and small U.S. towns and transferred to China and Indonesia and India, lured not just by cheap labor, but also by lavish government subsidies and absent environmental regulations.
Manufacturing, the basis of any strong economy, has continuously declined as a percentage of the U.S. gross domestic product since its World War II peak, when it was 28.3 percent. Its new low is less than half of that — 12 percent.
Here’s the most obvious difference between an economy based on manufacturing and one based on Wall Street: You can hold the handlebars of Harley-Davidson in your hands, but just try grasping a derivative.
The paper traders on Wall Street bundle mortgages into exotic financial instruments called derivatives, sell those, buy pseudo-insurance to secure them, then engage in legal betting on whether the “instruments” will soar or fail. This kind of activity caused the financial collapse in 2008. Frankly, beyond being incredibly risky, these transactions don’t create true wealth; they just generate big bonuses.
In manufacturing, an entrepreneur takes raw material and adds energy, ingenuity, tools and labor to create a product – like steel. That has real value and can be sold on the market to someone who needs it to combine with other materials to make finished merchandise like motorcycles or refrigerators. And those manufactured items are durable and valuable.
In the process of manufacturing, many people are employed – to get the raw materials, whether it’s limestone or iron or trees, to transport it to a factory, to generate electricity to run the factory, to transform the raw material at the factory, to deliver the product to the buyer, to pave the roads and build the bridges and repair the railroads necessary for all that transportation, to design the highways and factories and overpasses, to feed all the workers lunch.
Tragically, the Great Recession caused by Wall Street has hit manufacturing hard. While unemployment is at a 25-year high of 10 percent, the unemployment in manufacturing has run a couple of percentage points higher than that. More than 2.1 million manufacturing workers have been thrown out of their jobs since the recession began in December 2007.
These workers are the parents of children in Dora-the-Explorer sweat shirts who are asking Santa for elf jobs.
These are the workers who have cut back on doctor visits or medical treatments – although almost half are suffering from depression or anxiety, a New York Times/CBS poll of unemployed adults showed.
These are the workers who told the pollsters that the frustration and stress of unemployment has provoked conflicts and arguments with family and friends.
These are the workers who have lost their homes or have been threatened with eviction or foreclosure, who have difficulty paying bills and have resorted to borrowing money from friends and relatives. These are the workers profiled by Anne Hull of the Washington Post in a story that began by describing desperate laid off Warren, Ohio residents in a pawn shop:
“At campaign time, they are celebrated as the people who built America. Now they just want to know how much they can get for a wedding band.”
These are workers selling their precious keepsakes to survive 15 percent unemployment in an area along the Mahoning River that once was the world’s fifth-largest steel producer – until it lost 50,000 of those family-supporting manufacturing jobs and another 11,500 middle-class jobs at the Lordstown General Motors plant all in a decade.
These workers could be holding good, steady factory jobs if the United States had implemented a manufacturing strategy, the way China, Japan, Germany, even The Netherlands did long ago.
Just last week, the Obama administration offered a gift to all those who believe in manufacturing. It is that strategy for America. Its formal name is the White House Plan to Revitalize American Manufacturing.
For that five year old girl in the Dora the Explorer sweat shirt. For her furloughed father and her family. For the future of this country, let’s give ourselves the gift of a future constructed on a solid economic foundation. Let’s implement that plan to revitalize American manufacturing immediately. Millions of unemployed workers can’t wait.



61 Comments







Absolutely agree, Leo, thanks for being here.
Thank you, Mr. Gerard: I hope people are listening.
I would say the gift America needs most is a conscience. Here is a clip of Charles Payne saying that he is concerned that the 85% of Americans with health insurance will be inconvenienced when all of these new people get access to a doctor.
http://progressnotcongress.org/?p=3442
Well, that’s not going to happen. The Rs and the Ds are in a race to the finish to outsource all decent U.S. jobs.
What eCAHNomics said. Twice.
I often point out how, when my family moved from Wilkes Barre to Baltimore, we were raised in the heart of a working class community.
But back then my working class father had a job at Martin Marietta [Lockheed/Martin today]. He and many of our neighbors also had access to good jobs in the shipyards and the steel mills and auto plants. As did I after I graduated. Living wages and unions do wonders for instilling the motivation needed to raise a family with an eye towards the future.
Today of course many shake their heads and wonder plaintively: Why in the world are things so much more precarious!!!
Maybe because all those good jobs have long been shipped overseas and now living on the edge is the new norm.
Why do people just accept this? Why aren’t they trying to change it?
The thing called NAFTA thanks to Bill Clinton.Stepting on the middle class for short term ganes. Now do you thank that a start up pay will be anywhere close to the wages and benifits that the people had in the 1970 to 1985. Been going down hill to fatten the walets of the leaders of the baby boomers that the fat cats bought. Thay told the rest of us we should be happy there in charge.What are these same people telling us about health insurance now?
This brings up an interesting question: to where will the government mail out all the health insurance subsidy checks when so many won’t have an address? And where will they keep their mandatory policies? In the trunk of the car? And if they can’t make their payments because their income only covers the cost of eating, what happens to them then?
Are there no prisons? Are there no workhouses?
“Many can’t go there, and many would rather die.”
Maybe that whole death panel thing traces back farther than I had realized. /s
I read yesterday that the 501(c)(3) foundation that is paying for the Memorial for those lost on 9/11 at the WTC will NOT be purchasing granite from New Hampshire and NOT give the contract to a North Carolina firm that had bid on the contract.
Instead, it will go to an Italian concern.
I understand that price is a factor; I understand global trading and the need for it.
What I don’t understand is why Americans aren’t willing to pay more even if it’s just to help keep Americans working.
While I’m on the topic, what I also don’t understand is why billions aren’t being put into manufacturing renewable energy products like solar panels and wind turbines?
Clearly we can’t make it in steel. We couldn’t begin to catch up with the Chinese. I doubt American car manufacturers will be able to catch Japan and Korea. But those countries have yet to enter the “renewables” field. Is there anything to stop this administration from making it a good deal for venture capitalists to get into these new and emerging technologies?
All the money wasted on the bank bailout? All the money soon to be wasted on forcing us to buy crappy health insurance? All the money spent on the wars? We can’t do everything at once. We can’t afford to do everything we want to do.
Apparently wars banks and insurance companies rate more than green jobs.
I read that one of ower goverment hand out for wind turbines 80% went to China for the wind turbines,20% forAmericans to put them togeather.Thank you Obama
Link? China builds low cost wind turbines Danish, German, Spanish heck the Indian ones are rumored to be better. I think Obama is paying back some of that debt we owe China.
It’s everything Redwing Boots I thought thay were American made looking for a new pair there made in China. Only 3 american owned tire co. when I tryed to find where there tire plants were no one can tell me.
REDWINGS ARE MADE IN CHINA??”???
What happend to the ‘stimulus’? You never really hear anything about it..
Yup, for about the past decade. Sad, isn’t it?
But you can still buy jeans that are made in America: http://www.gussetclothing.com/
Bought a Radio Flyer wagon last year – made in !@#$%^&* China!!!
So any plans for accomplishing this because Obama does not seem to be listening to us right now.
Details will it provide what Lefty economists think are enough jobs to get the economy going? Will it provide green jobs? A plan without details is like wax fruit.
Sure we need a plan, but we also need a plan for pushing that plan through Congress.
Unless there is serious mobilization on this issue, anything that comes out of Congress will be just another half-measure that shovels money in the wrong direction.
We did mobilize on healthcare we went to Town Halls despite threats of guns. We compromised like grown ups and were betrayed.
Any plans we make better include crushing a few snakes first before we commit to support anything.
I want Rahm fired and not allowed anywhere near Washington as lobbyists as a show of good faith first!
Then I want Joe to retire for health reasons.
My point was more directed more towards Leo Gerard, the union movement, and any Democratic allies they (or we) might have. Policy papers and high level meetings are all fine and good, but if they do not work with activists in a sustained and organized fashion, they will not be able to achieve much of anything.
It sure would be nice if the Army was forced to hire Americans for all of its subcontracting and rebuild Iraq and Afghanistan jobs. Sure we Americans cost more but then again given the level of work not done rebuilding Iraq and Afghanistan over the last 8 years in the long run it would have been cheaper to pay American workers.
Any move to get Obama to hire American workers?
Gee, I just love to log on for the first time this afternoon and read More Of The Obvious.
Trying for Nobel Prizes, anyone?
I got the part that a lot sucks.
I just want to learn what’s moving us forward.
Even if we got America back to manufacturing, there’s only so much stuff that can be absorbed. Just like we have too many houses now, we have too many things. There are only so many refrigerators and motorcycles a household needs or wants or can afford.
Right, but there is a lot more to manufacturing than stupid geegaw consumer stuff.
There’s a mid-manufacturing cycle too, for other factories that make things. Like robotic parts. Then there’s the whole field for green tech. We should actually make and export that stuff to the world.
Would be good for everyone.
There are plenty of “things” that are necessary just to live. Think what it would be like if there were no Wal Marts. No chain fast food joints. Universal health care. We could go to a new form of business. Local.
That is what we used to have before DC sold us out to corporations. Cuts down on gasoline for those enormous trucks all over the highway.The US is not the largest exporter of food anymore.
Our food comes from all over the world. If you have ever had a garden, and know what fresh food tastes like. …you can understand that after a few thousand miles food just isn’t fresh. Food value does not last long. Our current way of life ..laws only benefitting corporations is insane.
Recycling is a manufacturing industry.
Green jobs are very much in the ‘manufacturing’ sector.
BTW: I think that few Americans really understand that manufacturing creates far more jobs per dollar than CDO’s create; we’re still at Phase I of the Learning Curve in connecting those key dots.
We need manufacturing jobs, because they create other jobs.
And ‘housing’ shouldn’t mean subdivisions; many new materials could be created for good housing. For instance: even a Starbuck’s looks good built green. And all the materials in a building like this are manufactured by someone.
If the Fed is willing to loan billions to the banks to keep them afloat why not loan start up money to employee owned companies to manufacture basic necessities like clothing and shoes. We can build on that with other commodities we now import.
Because China already sells us that stuff and we need them to keep buying our National debt so we can fight more stupid war?
But Yes I am with you i would like to see some hemp clothing get some support in this country.
You’re acing naive.
You’re heart’s in the right place. But, …
Nothing ventured, nothing gained.
Whatever. Venture forth.
We could build super fast trains passenger and freight. We could make every car a GM Volt. This would provide jobs and cut back on what we spend on oil.
But will the WH push for any plan after the healthcare failure I’m not sure we can count on the WH getting anything done.
I think the time of relying on the WH to do anything meaningful for anybody but the ruling elite is over. This is one of those things where the people have to take the bull by the horns. We can force Congress into this shift. We can make this a campaign issue and we should, right along with single payer. The far right likes to use wedge issues, we can turn health care and manufacturing into reality based wedge issues.
I’m not looking for “investors” to jump start manufacturing. While Adam Smith may talk about “the invisible hand” of self interest I think we’ve had enough of that type of self-interest. Employee owned firms and state legislation to change “right to work” to “right to organize.”
Agreed why not give bankrupt firms to the employees for a song?
As long as they’re manufacturing firms.
If President Obama would stop genuflecting to Wall Street, the GOP, and moles like Lieberman and Nelson, he could have put millions back to work months ago on programs patterned after the New Deal. But he seems completely captive to corporate masters. Perhaps he never intended to help Main Street at all? Even such simple measures as firing all those corrupt, Democrat-persecuting US Atoorneys appointed toward the end of the Bush reign, which he could have done in a single day with an executive order, even such simple steps he has not taken.
President Obama needs to be challenged from the left, by someone with guts and brains who will fight fearlessly for working Americans. Wake up, Mister President’ or let someone else do the job! I’m talking about Congressman Alan Grayson. We should draft Representative Grayson to run against President Obama in 2012. Evert Cilliers at 3 Quarks Daily makes the case better than I can.
After Allen Grason started his rage about Healthcare got a lot of donations.Then he started telling us this health insurance give away was good for America while stepting on the middle class.How long you think it will be before your next raise if you have a job. Lisen to all of what Allen Grason has said closely.
Thanks, Leo. We need jobs so bad here (SE Ohio).
Given that another banking collapse is likely since the banks have not changed the stuff they are doing that caused the first one. Given that another banking collapse is likely to happen soon because the financial system is still shaky and anything could set it off.
Do we have any plans about what to do if the US defaults on its debt or drops the value of the dollar 30% in 6 months?
Michael Whitney is upstairs!
Nurses Union: Senate Bill Isn’t Real Health Reform
Who wants to work in a factory? Nobody. Nobody that is that wants any social status at all. Who wants to manage for a manufacturing company? Nobody. Nobody who wants to get into a company that has real prospects for growth and will give you social and professional status. Who wants to be an executive of a manufacturing company? Nobody as a first choice that’s for sure.
Manufacturing is low social status and even more importantly is long past the era where those businesses are highly capitalized. In other words where the big money is made.
If you are a factory worker than there is almost zero chance that the issues discussed here will be agreed with by anyone and most won’t even understand them.
Manufacturing and making money at it is exceedingly difficult anywhere. It is hard work not so much of the physical variety. Firstly for floor workers it is repetitive. For everyone else it is exceedingly difficult to bring all the elements together to make a quality product. Made tripply so because all the workers are in a sense depressed. Depressed because they are not respected. If you are in manufacturing in America you get no respect.
The 10% of the unemployed.Gave a good and stable life style 1960′s 1970′s and 1980′s.
working to build fuel efficient cars would definately be a step up from my current job as a grocery store cashier, or my last stupid job at hardees or the stupid job I had before that wipin butts at the old person’s home. It would pay better too. You act like todays jobs are high status.
Yes, as if pollutants never find their way through ocean currents, air currents, or other means of dispersal. What short-sighted idiocy!
Great post.
I can appreciate the sentiment here, but I am still having a very hard time understanding for calls to re-industrialization, without the presence of a series of broad new industrial markets. We’d literally be just making crap for the sake of making it. It’s essentially a kind of quasi-Keynesian supply-side economics. “If you make it, they will buy it.”
At the same time that you make an apt criticism about the productive value of financial services, et al. There’s an implicit notion that there’s intrinsic utility in just refining raw materials into random junk. We’re not facing a scarcity of stuff, we’re facing a scarcity of effort required to make it, and since our compensation schemes are all predicated on that “effort”, a decline in output effort (despite a possible correlated uptick in overall production) is a decline in compensation, and eventually a decline in demand.
I think the problems might be a lot more fundamental, and may hinge on conditions of vast discrepancy in the requirements of a healthy macro economy compared to a functional micro economy. This diary is a piece of the thought experiment I’ve been having on this front: Reevaluating Unemployment: Is Progress Destabilizing our Economy?
It didn’t gather a lot of commentary, but I would be keenly interested in your thoughts.
The Fed’s inflationary monetary policy over decades basically gutted the manufacturing base of the country. Capital investment for manufacture requires long term commitment that’s no longer possible under this continuing regime. The investment horizon has shorten over the period in question to the point that there’s no incentive to produce things to the extent it was done in the early part of the last century.
If you look at the dow 30 today and compare it with the dow in the earlier period, the replacement of manufacture by retail establishments is rather stunning as well as telling.
I have to say reading these comments makes me feel a little bit better tonight. Most of the people I know (unlike the folks here) think it’s better to make money by trading in monetary instruments of various types.
I am generally pissed off because of the decline of the manufacturing sectors in America and have been living in revolt against foreign goods- very hard to do.
Many people don’t understand that we are a great nation because of what we were , not what we are. Because of what we could do 20 years ago, not what we do now.
America is declining at such a fast rate, it seems to me that we are going to become unrecoverable soon if we don’t turn from these ways – sort of like global warming – we will tip the balance to the point of no return.
Hell, even the food we produced in such abundance is now being imported from South and Central America.
Everything we were is fast slipping away.
I think Rep. Grayson might be a good idea.!
A new president and new Democratic party would be my dream.
It’s like Thom Hartmann said the other day, and probably a hundred times before that: since Reagan we’ve gone, in America, from a manufacturing economy to a finance economy. Problem is, a finance economy is not an economy. Making things is how a country prospers.
And, I’ll say it again: Draft Grayson in 2012! Give the Democratic Party a spine transplant. Imagine all they could have accomplished this year if only they all had his courage!
Listen to everything Allen Grason says on healthcare he weak. We do need soneone witha strong spine not a loud mouth.Cant trust him.Really doesn’t look like we been able to trust any law maker for a long time.anyone but the stadious quo.We’ve gone for the hi IQ and got low intelance
This just makes no sense to me. It’s infuriating. Why can’t American workers manufacture the products we use here in America? It’s just common sense. You don’t even hear people saying “Buy American” anymore, because we don’t make anything. We’ve lost so many manufacturing jobs here where I live in the past 10-15 years – Caterpillar, Pfaltzgraff, Danskin, Thonet Furniture, Cole Steel and many more – all gone. Over the past year or so there was talk about Harley-Davidson possibly moving their plant to another state. After a recent union contract vote in which Harley basically got everything they wanted, they announced they were staying, but the operation would be streamlined and @ 800 jobs would be lost. What can workers do when companies say give us whatever we want or we’ll ship your jobs to China or Mexico, and sometimes even after giving them everything year after year they still ship the jobs overseas. I despise these so-called American companies and the politicians who enable them and the criminals on Wall Street. They don’t give a shit about their workers or this country. Isn’t it time for the middle class to fight back?
This is a problem with our trade agreements, they almost unanimously include vast liberalization of capital flows between markets, but the restrictions on labor mobility (immigration) stay fully in tact.
This creates a problem of equilibrium that can’t be balanced, because people can’t chase the capital. The capital chases a captive market of people.
It was a small personal victory when I got Jagdish Bhagwati to admit, in a Q&A session, to this acute source of problems that tends to be overlooked in his normal advocacy of globalization.
Another way to put it is that capital has already transcended the nationstate paradigm for social organization, and has moved on to a stateless condition; but people are still woefully trapped in a method of social organization that has been rendered anachronistic.
The biggest problem I see is that we (as citizens — “want it all”) products that are made in this country that can be sold at a resonable price. This is not the situation in the real world that we now live in — TOO MUCH GOVERNMENT REGULATION AND RED TAPE — want to get a business started with a great product idea … endless EPA, OSHA, etc, etc. requirements make it impossible for the “MADE IN THE USA” products to compete in a global economy. Whittle these agencies down along with their endless and mindless regulations and maybe we can start being a manufacturing country again.
The Dora the Explorer sweatshirt was made in China though.
The problem we all have in industrialised countries is that we do not expect corporations to have any other aim but to make money, and sadly, most of us have been led to believe that the purpose of our “careers” is to make money so we can acquire “stuff”. From China.
Thanks for the wonderfull post, Leo.
I know I’m late to this thread but I hope you see this.
For 32 years I have been a machinist. It is clear from the comments that the vast majority have no clue whatsoever about the desperate need to have and maintain a strong manufacturing base. It is imperative for a strong national security. It is critical to every American’s daily life.
When asked what a machinist does I tell people; reach out and touch something. If what you have touched is not living or growing out of the ground, there was a machinist involved at some point. It does not mater what it is. From ceral box to lamp shade. From cell phone to sneakers. From the knob on your doors to vacuum cleaner you run multiple times a week. Machinist. Drive a car? Machinists. Lots of em. Mow your grass? Machinists. Cook a meal? Machinists. You starting to get the picture?
Manufacturing jobs had provided a sure path to comfortable middle class retirment for millions of high school graduates for decades. Solid paying jobs with excellent benefits. 30 years of all out war on the middle have destroyed this once mighty economic engine and our economy in the process.
What a great post. No one wants to be working class in our country. It has become a derogatory term. And unfortunately, I believe, we’ve raised a couple of generations of young people who don’t understand that building things is an honorable and productive way to make a living. Nearly every action our government has taken in the last 30 years regarding manufacturing has been a kick in the teeth to the working class; so why on earth would anyone aspire to be a part of that working class? The other morning I was brushing my teeth and happened to notice that my toothpaste (Colgate) was made in Switzerland. Yeah – those people – the ones who are rampant capitalists and yet still have a pretty excellent healthcare system and not a lot of poverty. Apparently, it is more cost effective for Colgate to make my toothpaste in Switzerland than in the U.S. And yes, I know Colgate has facilities in the U.S., but seriously, we can’t make toothpaste here? Our government chose the enrichment of multinational corporations over the rights and lives of its own citizens. We are now just a conduit to transfer money into the coffers of the corporations.
We need to make high value-added stuff like Germany does, not just plastic crap like China.