NY Times 11.16, Off the Charts, Ross Douthat

Ross, thanks for a realistic article, it is a must read for all economists and Americans.

I personally applaud the President’s call for a summit to deal with the growing unemployment program in this nation. I do not agree with those voices that proclaim each day that the President is trying to destroy the economic productivity of the nation. His commitment to pull together some of the greatest business and economic minds for the summit is a great idea. Even though one of my oldest and dearest friends is a member of his cabinet, being a republican I doubt an invitation to attend will come my way, but I still cheer his effort and wish him every success.

I wrote in recent weeks an article in the NY Times focusing on the need for job restoration. I believe an incentive for companies (reduction or elimination of federal and state taxes on corporations) which restore American jobs may be the answer. Let’s learn to utilize the payroll taxes from worker paychecks in lieu of taxing corporations when foreign countries like China exempt them daily. Again, kudos Mr. President, this is a great first step in solving this problem.

On August 23rd, the lead story in the LA Times emphasized the 11.9 per cent unemployment rate in the area. It’s time for corporate C.E.O.’s to finally be confronted with the need for helping job restoration. These folks live in America, their children and grandchildren attend American schools, they utilize American services to the fullest, it’s time these C.E.O.’s consider helping the nation that gave them and their companies a future, envied by the rest of the world.

Recently, Bob Herbert of the N.Y. Times, reminded all Americans, recovery is still about the national economy. “The American people are worried sick over the economy, which may be sprouting shoots from Ben Bernanke’s lofty perspective but not from the humble standpoint of the many millions who are unemployed or those who are still working but barely able to pay their bills and hold onto their homes.” I personally remain concerned about U.S. job losses to China without regard for their replacement at home. In the woods when you harvest a tree you plant another, this is not happening on the jobs front...

Americans need to read the article in a recent Financial Times (of London) concerning the “Shopping habits of China’s suddenly wealthy” (August 21). The “Baofahu” as they are called, have become the suddenly wealthy. “Big flashy cars like the Porsche Panamera and the Geely GE, otherwise known as the Baby Rolls-Royce, are just a couple observations concerning their tastes. Add to the list their appetites for Gold, Barbies, Sprits and the finest wines, Ivory, Dairy, Dried seahorses for aphrodisiacs, they are still labeled by the author as “penny pinching, ruthless, suspicious shoppers.” This is a must read for Americans being admonished to drive smaller cars, use less energy, be careful in wasting healthcare, and support even greater participation in global trading.

The Financial Times also has reported “Caterpillar chief hits at “buy American.” “Address ing the Chicago Council on Foreign Affairs, Jim Owens attacked the ‘buy American’ position in the stimulus, saying it had prompted ‘a wave of concern throughout the world.'” The paper observed that Mr. Owens’s words carry weight in both Washington and globally…The Caterpillar chief is also a member of Mr. Obama’s Economic Advisory Board and is close to both the President and,…the transportation secretary…Mr. Owens stated that “we cannot be a great country by building a wall down the southern border.”

Financial Times, Hal Weitzman, August 22, 2009, FT highlighted the story that Caterpillar holds China truck talks (Justine Lau), “The talks come just months after Caterpillar announced that it would expand its joint venture with Navistar to produce commercial vehicles outside North America…Caterpillar also said it would withdraw from being an engine supplier for U.S. truck makers because of declining sales in the U.S. market.

It should be noted that Caterpillar is not the only American company exporting jobs to China. There have been some nations, however, who are to be commended for investing dollars and plants in the United States. Several auto plants are the result of Japanese, German, South Korean and other nations who understand the reciprocity inherent in equitable international trade. Businesses and nations must all yield to a free exchange on labor and production.

Much has been said in recent years about “job creation.” Whether small businesses, the federal government, corporations or even the U.S. Coast Guard, estimates can range from 30,000 to over 400,000 to create a new job. Job restoration is quite a different matter and summit efforts to return jobs to this nation are a must.

Again I commend the President for the upcoming Jobs Summit.

Dr. Alan Phillips
Bloomington, IL
Blog: http://NationalDirection.Blogspot.com/