THE 4TH OF JULY IN SAMARRA, IRAQ


Just a Company of American paratroopers, a guitar plugged
into the outpost's PA system, and a whole lot of demolitions.

Responsibility Politics

By Pejman Yousefzadeh Posted in | | | Comments (22) / Email this page » / Leave a comment »

Two public officials made strong statements in favor of free trade and free markets today. One will never face an election again, but his support and his stance against trade demagoguery is most welcome:

President Bush chastised lawmakers on Tuesday for letting international trade deals falter in Congress and criticized Democratic presidential contenders for wanting to scrap or amend the vast North American free-trade zone.

At the close of a two-day summit, Bush, along with Mexican President Felipe Calderon and Canadian Prime Minister Stephen Harper, stood solidly behind the North American Free Trade Agreement. Under NAFTA, trade between the U.S., Canada and Mexico has swelled from roughly $290 billion in 1994 to an estimated $1 trillion by the end of this year.

"Now is not the time to renegotiate NAFTA or walk away from NAFTA," Bush said. "Now is the time to make it work better for all our people. And now is the time to reduce trade barriers worldwide."

The summit was overshadowed by Tuesday's Pennsylvania Democratic presidential primary race between Sens. Hillary Rodham Clinton and Barack Obama, who have threatened to pull the U.S. out of NAFTA or renegotiate it to push for more protections for workers and the environment.

With fears about job security already being fanned by downturns in the economy, trade has become a key issue of the presidential election. Bush argued that NAFTA has fostered prosperity in all three countries and that Clinton and Obama are wrongly using anti-trade messages to lure working class voters. Free-trade opponents say expanded international trade helps businesses, but threatens U.S. jobs and keeps wages from growing.

Bush warned that without NAFTA, migratory pressure from Mexico would be worse.

"If you do away with NAFTA, there's going to be a lot of Mexicans, more Mexicans out of work," Bush said. "It will make it harder on the border.

"So people who say, `Let's get rid of NAFTA' because of a throwaway political line, must understand this has been good for America and it's also been good for Mexico and Canada."

Read on . . .

As the President pointed out, the real danger is not pointed to NAFTA as much as it is to future free trade deals. Again, the export market is one of the few bright spots for the American economy. If we decide to shut down on free trade, even that support mechanism will fall away and if you think that current economic conditions are forbidding, you ain't seen nothing yet.

There is another public official whose comments concerning trade ought to be noticed. Unlike President Bush, he does face an election. The ultimate one, in fact. And his comments on this issue are tremendously welcome and courageous:

John McCain came to the Rust Belt on Tuesday to promote worker re-training for the new economy and to denounce "the siren song" of protectionism.

"The answer is education and training," McCain said in front of a rusted, empty steel-fabricating factory here.

Youngstown is the latest stop on McCain's tour this week of what his campaign portrays as "forgotten" places -- communities struggling with changes in the global economy.

[. . .]

A man who identified himself as a former AFL-CIO official challenged McCain over the North American Free Trade Agreement with Mexico and Canada.

McCain said that, violations aside, the problem is not free trade, but rather "our inability to adjust to a new world economy." He said the future does not belong to the "old industries," but rather "the information technology revolution."

Tying the area's struggles to his own early struggles in this presidential race, McCain said, "Sometimes you get a second chance and opportunity turns back your way. And when it does, we are stronger and readier because of all that we had to overcome."

That's responsibility politics. Hopefully, it will win an election and if it does, we have a better chance at fashioning the prosperity we dream of and deserve.

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support.

He does not seek to avoid that which is difficult or challenging.

Most politicians disappoint us when they act out of a cynical calculation than out of principle. McCain is different in that he is quite principle, which makes the disappointments even harder to handle.

Anyway, I just wanted to say kudos to the Mac, and yes, I smell what's cooking for dinner.

The problem is by Aetius728

that in places like Ohio and here in western PA, support of free trade is a seriously damaging political position. Unless of course, one understands economics and is articulate enough to convince people of its benefits, and I don't think McCain is.

an articulate spokesman for capitalism.

Of course, neither was Bush You notice how President Bush tries to sell us on free trade---he focuses on how it helps Mexico instead of on how it helps the US.

I just wanted to say something nice about McCain since I am almost always on the side of saying something critical.

McCain is right to make the point, and I'm not criticizing him. Many intelligent people who have written about this have said the same thing, but if you think about it, that's because there really isn't any other answer.

The problem is that education and training aren't going to work. If you've ever met your standard unionized Rust-Belt manufacturing type of guy, you know that they're not really retrainable. Yes, that's a sweeping generalization. And yes, you'll have a very hard time refuting it.

We can fix education in a variety of ways, first and foremost of which is to eliminate the self-esteem and girl-exalting culture of public schools. And just as important, parents need to start teaching children that they have to really learn things.

But even if we fix education (which isn't bloody likely on a large scale), that effort will bear fruit a generation from now. The immediate problem remains, and it's a brutal one.

Part of it is that a lot of men just like doing things with their hands. We like machinery. We like jackhammers, welding, molten steel, dynamite. We like doing manly things and working hard. And then we like sitting around drinking beer in the American Legion hall talking with other men about our tough jobs.

I don't think that Joe Lunch Bucket is not retrainable. You could teach him IT or accounting, and he's smart enough to learn it. But he'd hate it. And you won't be good at something you don't like doing. Offer him a choice between working in a dirty, dangerous steel mill or working in a call center for the same pay, and I'll wager Joe takes the steel mill. Not because he's afraid of change or because the unions have brainwashed him, but because Joe knows he'd probably be ready to swallow the barrel of his gun after a few years in a call center.

So part of it is education. But a big part is manufacturing modernization, allowing heavy industry to remain competitive through robotics and advanced engineering. Companies like Caterpillar have thrived by going cutting edge, and provided plenty of good jobs for hard working men who at heart are still 4 year old boys driving big, noisy, yellow tonka trucks around the lot.

Not sure what the role of government is in all of this. Maybe it's just to get the hell out of the way.

"If all men were just, there would be no need of valor."
- Agesilaus

I think you nailed it by JSobieski

if you mean that many are attitudenally untrainable. There is little sense of individual responsibility to make yourself valuable to employers. Thus the complaint is about high paying jobs being replaced with low paying jobs. When you point out examples of new high paying jobs, or of entrepeneurs, their faces literally go blank and its as if they didn't hear you.

at least a man who thinks and acts like a man, in much of the modern workplace and the man's level of education and training isn't really the issue. Other than in the true skill trades, work is so highly incrementalized that a monkey could do it - or a robot, and the only reason a human might be preferred is that the capital cost is less for the human. In information, government and at any level of an industry where the product is process, the workplace, like the schools, is almost completely feminized. If you can't work well with and for women or can't supervise women, you're going to at best be very uncomfortable.

Despite the feminists best endeavors, men and women really are different; they approach problem solving differently, they make decisions differently, they approach their coworkers and subordinates differently. Especially, men and women deal with correction and criticism differently. Most men adopt a "do something even if it's wrong" attitude towards problem solving. Women go through all sorts of process and talking before even making a decision to decide something and half a meeting will be spent on just making sure everyone feels good about having the meeting and assuming a decision does get made, then there'll be endless discussion about whether the decision is the right one and how everyone feels about it. (The Democrats really have this figured out as a political strategy for reaching women and the castrati.) Some men just put their heads down and figure that crap is the price you pay for having the job and some run screaming from the room. There may be some, but I've never been in a mixed gender workplace that didn't divide straight along the girls and boys line but always with a boy or two that got along better with the girls and vice versa, so you had to use them as go-betweens but always be careful that they weren't using that status to cause trouble. Gay or effeminate guys, especially gay guys, were always handy in that role, but they can also out do the women at being intriguers.

For supervisors, correction, criticism, and discipline is a literal minefield. Men generally will either accept supervision and criticism or tell you to ****off and quit. Women on the other hand will either smile sweetly and ignore you, cry, or flirt; the "horizontal career move" instinct is still very powerful in lots of women. That isn't true of all women in the workplace, some, maybe most, "man up" and deal constructively with criticism, but enough don't to make it a real problem.

Other than "bright" young lads right out of college, most men will take the "it's your nickel" attitude about how the workplace runs or about changes in process or policy. There will sometimes be intriguers who'll backbite and sabotage, but in the main, men will either do what they're told or quit. If women don't like you or what your doing, they seek allies and before long you have some or even all of your workforce firmly committed to passive agression, all the while smiling sweetly and bringing food to work for everyone.

I spent the last decade or so of my career supervising a workforce that was usually about half men and half women and to make it more interesting about half lawyers. If I was physically there, I could keep them all in the traces. If I went out of town or on leave, I could count on coming back to a state of war. If I left one of the women in charge, the men would be in revolt and vice versa. It was so bad and so insoluable that I just quit leaving anyone in charge, delegating only signatory authority, and kept my cell on, and even who got the signatory authority would breed resentment.

In government, and in my observation in academia as well, there is a class of bureaucratic eunuchs who have learned to prosper in a "gender diverse" workplace, but to most men, the bureaucratic eunuch is a thoroughly destestable creature who on good days is referred to as a "weenie" or some such term of endearment. And when it comes to intrigue, the eunuch in todays workforce in every way lives up to the legacy established by his forebears in Turkish bordellos; if he comes up in an avuncular way and puts his arm around your shoulder, literally or figuratively, he isn't showing affection; he's feeling for the soft spot.

I got through a career without getting sued or charged with discrimination or harassment, though I got my share of formal grievances, but so long as I continue working, I don't want to ever have another subordinate, and especially not a female subordinate.

In Vino Veritas

them. Part of the problem was that these rust belt states made a Faustian bargain: The manufacturers of a few key industries wanted a monopoly on the labor pool (go back to Henry Ford), and were willing to give concessions to organized labor; in return labor delivered votes to influence government policies in favor of the industry; government favored those industries in policy at the exclusion of other business.

Everything was good as long as markets were increasing - but as soon as they turned down, labor was out of work, and due to those monopolies, their were no other opportunities waiting. i find it ironic that when Northrup EADS won the contract for the tanker, they passed up MI, OH, NY, PA and other rust belt states with a manufacturing past, and a manufacturing workforce, for farm country.

One of the sectors of the economy in Ca. that is growing right now is Aerospace manufacturing (think Dreamliner and A-380), yet for some reason, the rust belt states can not get a piece of that.

I think for these areas, they can still rely on manufacturing, but it will not be the heavy, highly unionized manufacturing of the past.

It takes huge capital inputs as well. If you discount for the source, EADS senior management for months now have been saying that because of the over-strong euro, they are trying to transform their production capacity so that its costs are measured in dollars.

But why turn to open farmland rather than the Great Lakes region? Because they will have to build their own new capital stock, and train new workers on their own. They (and companies in other industries, like automobile final assembly) have decided that they'll come out ahead if they do it in the south. Much of the existing capital stock of the North and Northeast is outdated, and would need major upgrades before anyone can do anything with it. That becomes more true with each passing day.

It's the oddest thing. Two years ago, I figured that the age of manufacturing was over, and that most of the world's tradable value would take the form of information (including information inputs to value chains).

Now I'm completely of a different mind. What changed was that the emerging world (not just Asia but also the Middle East) has embarked on a construction and infrastructure buildout that is far bigger and faster than anything else before it in history.

There is a large but overlooked potential for American manufacturing, which is the most efficient in the world, to make a big comeback. But not the way the politicians are approaching the policy decisions.

bitter, clinging to our religion and guns.
Yet he is voting anti-trade, and clinging to his religion of hate. Who knows about his gun taste? But many dhimmies like to have their people carrying guns even to protect them, even as they seek to take guns from those pesky people in flyover country.
And it is McCain who had resisted security for weeks and weeks, not BHO.

No, honestly, I do.

Not in THAT way, of course. And not in the Obamaniac swooning way either.

More in the way I love my tough old uncle, who served in the Army during Korea and then built a successful manufacturing company. My uncle is a bit odd sometimes and he's certainly not the slickest, smoothest guy in any room. Nor is he the smartest. But by God he's a tough old bird, old school through and through. He's seen it all and he's not going to back down and he's not going to sugar coat anything. He's going to look you in the eye and tell you what's what, and I love him for it. I'm 44 and I want to be like him when I grow up and become a real man.

That's how I feel about McCain. I love the guy.

"If all men were just, there would be no need of valor."
- Agesilaus

While I have my differences with some of McCain's policies I sure do respect and admire him. What's more, I trust him. He's no wimp and not about to surrender to PC. He knows what he believes and believes what he knows and he's not afraid to spell it out for you. Take him or leave him-what you see is what you get. Period. And I like that.

If you're in Michigan (as it seems from your prior post), I'll bet he's a tier-one or tier-two provider to the auto industry.

How's his business these days? Any possibility that he can expand into export markets?

is actually providing parts to "foreign" auto companies producing vehicles in the US.

The domestic auto market has been growing (until very recently), its just that the domestic producers have been losing market share. The Tier 1's and 2's have been getting work from Toyota, Honda, Nissan, etc.

Of course, none of these companies actually assemble vehicles here in Michigan since they are smart enough to do that in right to work states.

I would guess that components, subassemblies and tooling manufactured in the US makes up a nice healthy chunk of the unit-value of a foreign-nameplate vehicle assembled in Kentucky or Tennessee. (Marketing, brand equity and design are obviously a different story.)

If the Tier ones, twos and threes are really competitive, then let's feed them and let the Big Two just fade away and not worry about it.

As I said upthread, there's a case to be made (but no one is making it) that we can seriously revive American manufacturing, just because manufacturing matters again in the global economy in ways that were not the case in the very recent past.

The American Axle strike is a good microcosm of the troubles faced by the 1s/2s. I think they are viable in the long term, but it takes time to get the new business from the new customers (auto industry programs take years to set up). Right now the entire auto industry (non-domestic included) is down, which doesn't help matters.

I think the Big Three will ultimately make it as well.

World demand for automobiles is only going to increase, and manufacturing cars is not easy to do (there are only a handful of countries in the business of exporting vehicles). Moreover, there are places in the world where a US car is a prestige item.

The real question is, will the Big Three ever get market share in the US again? Will the Big Three make money in North America? Or will the heart of Ford be in places like Latin America, Europe, and Asia?

North America is the most profitable auto market, so the inability to make money here is a bad sign.

Compared to Toyota Motor and some other companies, GM and Ford Motor really can't come up with the scratch to invest in new products. Their marketing is potentially the best in the world, but without the ability to take some risk, how can they make that pay out?

Two years ago, I started telling private-equity guys of my acquaintance that one of them would acquire GM for $40 billion, net of long-term debt. I guessed wrong on the company. Chrysler Group is the one that went private.

But while the name of the game for public automakers is cash flow, for a private one it's profitability. And in that regard, Chrysler isn't inspiring a lot of confidence, and I know some well-informed people who don't expect Chrysler Group to make it through the year in its current form.

Once we get past this recession, it's possible that the go-private model could yet work for the Big Two. It's also possible that they will become semi-nationalized in an upcoming Democratic Administration.

Ford has been accessing credit by taking mortgages on individual pieces of real property. This has never been done in the history of the company. It is evidence in support of the proposition that Ford is more valuable in its various pieces than it is as an ongoing enterprise. My dad is a Ford retiree, and I have driven Ford cars my entire life. The white collar workers at Ford that I know are all hoping that Ford is taken private. They were also hoping that the Delphi bankruptcy would break the UAW, but Delphi ultimately backed down.

The American Axle strike is interesting. It is shutting down GM plants, but AA doesn't seem to waivering.

I believe the Big Three are spending less on product innovation at this point than the competition. This is the result of the lack of capital.

McCain by Aetius728

should insist that at least one of the debates be moderated by someone like Larry Kudlow. Obama would be so out of his league, it wouldn't be funny.(OK, yes it will!)

Oops! by Aetius728

This reply should be to a different comment earlier in the post. Sorry.

Oops! by Aetius728

This reply should be to a different comment earlier in the post. Sorry.

I'm just gonna give up and take a nap.


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