|CREATING AND PRESERVING JOBS
America has always created new manufacturing jobs and lost old manufacturing jobs as products were
rendered obsolete by new technology. In the 1970s, 1980s and 1990s America created an average of
almost 2 million more jobs than it lost year after year. Since 2000, the average yearly number of jobs
created has been only about 300 hundred thousand more than the jobs lost. (A chart with the actual
figures is in No. 132, "Jobs And Failed Policy.")
Before I offer solutions, I want you to understand the severity of the problem. It is a war! A number of
recent articles have led me to believe that American job loss is part of a push by China to obtain
domination of Asia now and perhaps the World eventually.
First, I concluded that what happens in Chinese business is dictated by the communist party.
"The People's Republic of China (PRC), with a population of approximately 1.3 billion, is an authoritarian
state in which the Chinese Communist Party (CCP) constitutionally is the paramount authority. Party
members hold almost all top government, police, and military positions." ("2010 Human Rights Report:
China (includes Tibet, Hong Kong, and Macau)," US Dept of State, Bureau of Democracy, Human Rights,
and Labor, April 8, 2011"). This enormous report would be hundreds of printed pages. It details the
human rights abuses that keep Chinese citizens in line.
Second, I concluded that the reports that China was hiding a large nuclear arsenal in tunnels are
probably true, despite claims by those who wish to continue disarming America that they are false.
Briefly, a 2008 earthquake left strange lumps and pits in Sichuan province. Chinese news accounts
reported that thousands of radiation technicians were rushed to the region and there were pictures of
strangely collapsed hills and suspicion of caved-in tunnels in the area. In 2009, China began bragging
about the tunnels as a defense.
Professor Phillip A. Karber was a top Cold War strategist who reported directly to the secretary of
defense and the chairman of the Joint Chiefs of Staff before leaving to teach. He accepted an
assignment to study the tunnels suspected of hiding nuclear weapons from the chairman of a Pentagon
agency charged with countering weapons of mass destruction. Eventually he and two dozen student
volunteers released their report.
They concluded that the Second Artillery Corps, a branch of the Chinese military that deploys its nuclear
weapons, had dug thousands of miles of tunnels and that China’s nuclear arsenal could be much larger
than previously estimated. They noted that there is room in the miles of tunnels for up to 3000 nuclear
missiles. Current official estimates of Chinese nuclear weapons range from 80 to 400. (William Wan,
"Georgetown students shed light on China’s tunnel system for nuclear weapons," The Washington
Post, November 29, 2011).
Third, I concluded that China was nearing the end-game in an all-out effort to destroy America's super
power status. China already has much more military power than its neighbors, but it is restrained by
America the super power. However, if America's economy is destroyed, the collapse of her military
budget will reduce her power to that of any nation.
America's strategy for a strong economy has rested on the creation new industries, often with high tech
jobs. The Chinese are now challenging that strategy. Currently, they are taking over solar device
manufacturing. Here is what Richard MacCormack, an authority on manufacturing and technology has to
say about an industry fighting China on its own.
"And now it is the U.S. solar industry's turn to deal with the strife associated with filing a trade case
against China, pitting producers against importers in a vicious fight.
"When SolarWorld filed an antidumping and countervailing duty petition with the federal government
against Chinese manufacturers of crystalline silicon photovoltaic cells in October, the opposition
quickly mounted a counter attack. Chinese producers rushed to hire Washington attorneys to fight the
petition. They were joined by American importers that benefit from the Chinese incentives and
subsidies. They formed a coalition that hired more lawyers and PR agents to flood the wires with press
releases and lobbying campaigns...
"And so it is the case in the latest petition filed by SolarWorld on Oct. 19 before the International Trade
Commission. SolarWorld has argued that Chinese imports have surged beyond comprehension -- up 350
percent over the past two years; that in July 2011 alone, imports of Chinese crystalline silicon PV panels
and modules exceeded the volume imported in all of 2010; that Chinese prices have dropped by 50
percent over the past year; and that countless Chinese incentives, preferential loans and lines of credit
worth tens of billions of dollars, subsidized utilities, and land and tax rebates have led to the demise of
at least seven major American solar manufacturing plants and the loss of thousands of jobs. This has
occurred just as the market is on the verge of explosive growth.
"They argue that 95 percent of Chinese production is not intended for Chinese domestic consumption,
but for export. China's total solar capacity is 32 times greater than its domestic demand for solar."
(Richard A. McCormack, "Another U.S. Industry Turns To Trade Law As Its Last Resort And Faces The
Wrath of Importers," Manufacturing & Technology News, November 30, 2011). Richard McCormack is
editor and publisher of Manufacturing & Technology News. For 26 years he has reported on science and
technology, industry and government, specializing in economic competitiveness and globalization.
There is no question that China producing 32 times its domestic needs, cutting prices 50%, and offering
"incentives, preferential loans and lines of credit worth tens of billions of dollars" is overkill. In fact, I
believe it is part of a Chinese determined plan to keep economic pressure on America by preventing
growth in industries which would help our economy. Note the timing! "This has occurred just as the
market is on the verge of explosive growth."
This attack will not be effectively stopped by trade law. ""Even a top government official who was in
charge of trade law said trade cases are an ineffective strategy for reversing the manufacturing crisis in
America. "As a practical matter, as the person who is responsible for administering the dumping laws, I
can honestly tell you they don't work," said President George W. Bush's Undersecretary of Trade Grant
Aldonas in 2004. "We don't have the tools right now the way these laws are written to go after a problem
like China." None of the laws have changed since Aldonas made that statement."" (Ibid).
How is America to recover from a decade of industry loss? Can it recover given Chinese policy of
destroying American manufacturing industries as they are born. The answer is, yes, we can legislate our
way past this crisis, there are solutions. Will we curb China and reestablish American manufacturing? I
don't know. I can only give you my opinion.
I think Buddy Roemer, the hidden candidate, would attack the problem with gusto and he has the
expertise to fix it. I think Barack Obama has an agenda which is destructive to America. He would not
even try. The other candidates would try to fix the problem if it did not interfere with the profits of the
special interests that bankrolled their campaigns, so probably they would be ineffective.
I believe that some of the solutions I propose would be forbidden by rules of the World Trade
Organization. Only Ron Paul and Buddy Roemer have committed to getting America out of the World
My suggestions concentrate on manufacturing, because every factory spurs growth in related areas, for
example parts supply, tool and die manufacturing, design, marketing, etc.
As a solution, I would suggest implementing procedures to fast track and protect promising inventions.
Currently, the US Patent Office allows a first filing that is used to establish the date of the invention, a
provisional application for patent. These provisional applications are filed and forgotten. The inventor
has a year to file an actual patent application.
I propose that the Patent Office allow inventors to ask for help while filing a provisional application for a
patent, and that the patent office route those filings where help is requested to a team of patent and
industry experts for evaluation. In order to protect inventors, the time to file an actual patent
application should be extended to two years.
If the experts believe the invention has strong commercial possibilities, they could assign a team to fast
track its development and manufacturing. This service could be reimbursed by assignment of part of
the royalties due to the inventor.
In addition, I propose that all new inventions in America be protected by restrictive trade barriers or
bans on import of similar products for the first ten years, the request for protection to be made at the
time that the invention is put on a fast tract, or the time of filing for patent, or actual production. The ten
years of protection would start at the date the patent is granted or the date production begins,
whichever is earlier. Normally, the time from patent to actual production would be about one to two
years, that effectively would give eight or nine years protection for cutting edge technology, which is
likely the time gap before the technology is replaced with newer technology. Note, however, that a rush
to production would be rewarded with a full ten years of protection from foreign competition.
There are further suggestions for getting America back to work in No. 134, "Suggestions, Solutions And
Wild Ideas." To summarize: I suggested giving Big Oil a free hand to develop American oil fields,
perhaps five years with minimal regulations and red tape. Also I suggested a lottery of the homes among
the 240,000 properties once owned by Freddie Mac and Fannie Mac, which are now owned by the
American people because the government took over the failing mortgage giants. I thought 5000 homes
a month would be a big enough number to stir interest. For full details, read the article.
For manufacturing overall, because it creates wealth (cars, computers, and other objects those sales
value substantially exceeds the cost of production, as opposed to the service and government sectors
of the economy that move wealth from one person to another), I would propose the maximum possible
deregulation consistent with safety, deregulation of manufacturing in all non-critical areas, the
exceptions should be worker safety and disposal of hazardous wastes.
One of America's great strengths is the market formed by her prosperous citizens. Americans have
shown for years that they will buy new technology. It is fiscal folly to consign this market to the Chinese.
I hope American politicians can summon the will to stop doing so.
It is also folly for states to contract with foreign countries to build infrastructure, it undermines the
American tax base, which relies on employed workers with good jobs. Congress should act (anyone
listening there?) to forbid any state that receives federal funds from hiring non-Americans.
One more thing: China's intent to destroy America's economy has left her vulnerable to economic attack.
In a rush to develop cheap products as a weapon against America, Chine has systematically underpaid
her workers. China does not have an internal market that will sustain her high tech industry in the event
of a developed world boycott on her products.
Amo Paul Bishop Roden