Blaming the wrong people


Yves Smith at Nekkid Capitalism:

The Decline of Manufacturing in America: A Case Study

One frequent and frustrating line that often crops up in the comments section of this blog is that American labor has no hope, it should just accept Chinese wages, since price is all that matters. That line of thinking is wrongheaded on multiple levels. It assumes direct factory labor is the most important cost driver, when for most manufactured goods, it is 11% to 15% of total product cost (and increased coordination costs of much more expensive managers are a significant offset to any savings achieved by using cheaper factory workers in faraway locations). It also assumes cost is the only way to compete, when that is naive on an input as well as a product level. How do these “labor cost is destiny” advocates explain the continued success of export powerhouse Germany? Finally, the offshoring,/outsourcing vogue ignores the riskiness and lower flexibility of extended supply chains.

This argument is sorely misguided because it serves to exculpate diseased, greedy, and incompetent American managers and executives. In the overwhelming majority of places where I lived in my childhood, a manufacturing plant was the biggest employer in the community. And when I went to business school, manufacturing was still seen as important. Indeed, the rise of Germany and Japan was then seen as due to sclerotic American management not being able to keep up with their innovations in product design and factory management.

But if you were to ask most people, they’d now blame the fall of American manufacturing on our workers. That scapegoating serves to shift focus from the top of the food chain at a time when executives have managed to greatly widen the gap between their pay and that of the folks reporting to them.


As I asked before:

Could part of the reason our economy has been flatlining so long have something to do with the fact the we don’t make anything any more?

Seriously – what industry exactly is gonna generate a recovery? Food service jobs? Tech support? Government employees? I kinda doubt it will be the home construction industry.

We have lots of people who grow stuff, sell stuff, transport stuff, insure stuff, fix stuff and/or install stuff, but nobody in this country MAKES stuff.

We sent all our manufacturing jobs elsewhere and now everything is cheaper but nobody has any money to buy it.

Did the housing/credit bubble hide the fact that we fucked ourselves?


Well?


Obama’s Labor Day Speechification


I’m not going to ruin your day by playing it.

Here’s a couple tweets:

 

James Taranto:

Shorter Obama: Re-elect me, and the whole country can be as successful and prosperous as Detroit.

JammieWearingFool:

Another historic first for @BarackObama. This is the first time the American people have had war declared on them on a holiday.



The F**king Union That Works For You!


This is an open thread.


Blue Collar Music

Wikipedia:

Union membership had been steadily declining in the US since 1983. In 2007, the labor department reported the first increase in union memberships in 25 years and the largest increase since 1979. Most of the recent gains in union membership have been in the service sector while the number of unionized employees in the manufacturing sector has declined. Most of the gains in the service sector have come in West Coast states like California where union membership is now at 16.7% compared with a national average of about 12.1%.[8]

Union density (the percentage of workers belonging to unions) has been declining since the late 1940s, however. Almost 36% of American workers were represented by unions in 1945. Historically, the rapid growth of public employee unions since the 1960s has served to mask an even more dramatic decline in private-sector union membership.

At the apex of union density in the 1940s, only about 9.8% of public employees were represented by unions, while 33.9% of private, non-agricultural workers had such representation. In this decade, those proportions have essentially reversed, with 36% of public workers being represented by unions while private sector union density had plummeted to around 7%. The US Bureau of Labor Statistics most recent survey indicates that union membership in the US has risen to 12.4% of all workers, from 12.1% in 2007. For a short period, private sector union membership rebounded, increasing from 7.5% in 2007 to 7.6% in 2008. However, that trend has since reversed. In 2009, the union density for private sector stood at 7.2%.

I’m sorry, but as much as I value the work they do there is a qualitative difference between government and private sector workers. Public sector employees have civil service protection and they get paid with our tax dollars.

In California the correctional officers unions have financed numerous draconian new laws creating new crimes and extending the sentences of old ones. This creates job security for them and overcrowded prisons.

Even more ridiculous are millionaire professional athletes going on strike.



Leave Obama Alone!


Jonathan Chait:

What the Left Doesn’t Understand About Obama

This has been the summer that liberal discontent with Obama has finally crystallized. The frustration has been simmering for a while — through centrist appointments, bank bailouts and the defeat of the public option, to name a few examples. But it has taken the debt-ceiling standoff and the threat of a double-dip recession to create a leftist critique of the president that stuck.

Obama’s image as a weakling and sellout on domestic issues now centers on his alleged resistance, from the very first days of his presidency, to do whatever was necessary to heal the economy. “The truly decisive move that broke the arc of history,” wrote the Emory professor Drew Westen in this newspaper, “was his handling of the stimulus.” Just as the conservative repudiation of George W. Bush boiled down to “he spent too much,” the liberal repudiation of Obama has settled on “he didn’t spend enough.”

There’s truth in that. President Obama underestimated the depth of the crisis in 2009 and left himself with bad options in the event the economy failed to recover as quickly as he hoped. And yet the wave of criticism from the left over the stimulus is fundamentally flawed: it ignores the real choices Obama faced (and the progressive decisions he made) and wishes away any constraints upon his power.

The most common hallmark of the left’s magical thinking is a failure to recognize that Congress is a separate, coequal branch of government consisting of members whose goals may differ from the president’s. Congressional Republicans pursued a strategy of denying Obama support for any major element of his agenda, on the correct assumption that this would make it less popular and help the party win the 2010 elections. Only for roughly four months during Obama’s term did Democrats have the 60 Senate votes they needed to overcome a filibuster. Moreover, Republican opposition has proved immune even to persistent and successful attempts by Obama to mobilize public opinion. Americans overwhelmingly favor deficit reduction that includes both spending and taxes and favor higher taxes on the rich in particular. Obama even made a series of crusading speeches on this theme. The result? Nada.

Poor Barack, he only had A FILIBUSTER-PROOF MAJORITY FOR FOUR MONTHS. That’s four months when the Democrats could push through their Christmas lists of legislation, administration appointments, judiciary appointments and treaty approvals.

What did we get out of it? Obamacare aka “The Patient Protection and Affordable Care Act.” (PPACA)

Obama got exactly what he wanted with Obamacare. He didn’t want single-payer or a public option. He wanted a plan that guaranteed a huge windfall for his financial backers in the health care insurance industry. He got it – without a single Republican vote.

That piece of legislation was so popular that Republican Scott Brown was elected to Teddy Kennedy’s old Senate seat, ending the filibuster-proof majority.

What’s that you say? “But Klown, you don’t understand how the legislative process works!

Wrong again, Koolaid breath. I do understand – I minored in Poli-Sci and I took classes on that specific topic in college. I also understand that the Democrats were able to quickly steamroller all opposition to enact the FISA revision and the Wall Street bailouts. Not only that but they also tried to sneak through a law retroactively legalizing robo-signing fraud too.

Obama plans to run for reelection by claiming the mean and evil GOPers are preventing him from saving us from a economic crisis they caused. But where is this wonderful legislation that they are blocking?

{{crickets}}



Blue Collar Liberalism


From Ace of Spades:

The New York Daily News is the liberal-leaning tabloid. More of a blue-collar liberalism (as opposed to the New York Times’ moneyed-set liberalism), but still liberal.

The post has to do with Anthony (Here’s a picture of my) Weiner, but I want to focus on those two sentences.

“Blue-collar liberalism.” I like that phrase.

Ace is 100% correct – there are two distinct forms of liberalism. Bill and Hillary Clinton are blue-collar liberals. Obama and most of his Obot followers are the other kind. Anglachel referred to them as Jacksonians and Stevensonians:

I’m going to return to some of the themes I have written about in past posts. The 2008 campaign has illuminated the class divisions within the Democratic Party in a way we haven’t seen since the early part of the 20th century. Part of that is because the class divisions have been obscured by events – the Great Depression which threatened all but the very upper class, WWII which unified the nation against real threats, the Cold War with its incredible rise in standard of living, the Civil Rights movement which made the party take on race, Vietnam with its focus on the war, and then the Reagan/Bush I years of jingoism, ending the Cold War and agitation over the “culture wars”. I think we can also argue, along the lines of Mark Schmitt, that the Democratic Party has been undergoing an almost century long redefinition of itself away from its Southern roots and into something antithetical to where it began. In the doing, the Democrats have ended up with two major modes of political action and identity, distinct from what the party was before the New Deal realignment, strands I have identified as Truman strand and the Stevenson strand, named after their post-New Deal exemplars. The organization of the party is far more complicated than this, I readily admit, but my goal is to provide ways of thinking about the party and American liberalism that break away from the demonization of the Right. Refinement of the categories will be needed.

The Truman strand is the inheritor of the old Jacksonian tradition in the party, for good and ill. The Stevenson strand is of more recent vintage, owing its origin to the progressives of the early century. The majority of the liberal bloggers (note, not everyone who claims to be liberal is) fall firmly within the Stevensonian strand, myself included. Most of the current party leadership and the “respectable” punditocracy also can be placed there. Whatever fantasies of radicalism the Blogger Boyz may ascribe to themselves, the Stevensonians are technocrats, not radicals. The technocratic mode is the antithesis of radicalism, having its roots in the battle against machine politics and introduction of “clean government” based on abstract and rational principles of governance. Progressivism in its original form was the tool of society matrons and the growing professional middle class to do a variety of social work – enforce laws, make public figures accountable, assimilate the waves of immigrants from Europe, establish sanitary conditions in urban areas, establish social justice and generally protect their position in the socio-economic order. It came out of utilitarianism in great part and embraced a shitload of crackpot “science” along the way.

[...]

The progressives were transformed into Stevensonians through the New Deal, when FDR melded the emerging social science academics with a professional bureaucratic cadre to run the new bureaus and departments, and to invent new things for the government to do and for the Democratic Party to run. This is what I mean by institutionalization. This mode of liberal politics has become the most effective developing a rational welfare state because its natural environment (if you will) is modern bureaucracy. We’re talking wonkitude of major proportions. A weakness of this mode, however, which I have also blogged about before, is the aversion to blunt political contestation, resulting in a willingness to relinquish popular politics and electoral battlegrounds in favor of dominating the crafting of policy and legislation and of appeal to the courts. It is a retreat into formal expert knowledge as the proper arbiter of political affairs.

At its best, this mode of politics provides a determined support for rule of law, supports social equality and justice regardless of particularity, and defends against corrupt consolidation of power. At its worst, it devolves into class elitism, condemnation of particularity, and rejection of the equality of the mass of citizens. “Why do we even try to help these people? They don’t know what’s good for them!

The Truman strand is more varied than the Stevenson strand for the simple reason that there are fewer barriers to entry. You do not need to be an intellectual. You don’t need the equivalent of a college education, believe in the scientific method or rationality, or aspire to a white collar professional lifestyle. You can be Rocky. Until Bill Clinton and the final exit of the Dixiecrats, this strand lived in tension between the new “Best and Brightest” faction which rapidly gained dominance in the party, and the old line, revanchist Dixiecrats. Those two factions warred for the support and votes of the Truman strand. While the Dixiecrats were rejected, the current campaign to me indicates that the Stevensonians do not have a lock on this group, either.

[...]

The old party machines were porous. They needed numbers to provide votes to maintain power. They needed the younger newcomers to fill posts and heel the wards to keep the votes coming, and that’s how new people entered the system. Harry Truman was a product of the Pendergast machine in Kansas City, Missouri, for example. To maintain power, you couldn’t be too picky about whose votes you collected. They were usually incredibly corrupt and, ironically enough, were usually the target of progressive ire. And then FDR welded them at the hip to the inheritors of the progressives.


That crackpot science she’s talking about includes eugenics and white racial superiority. That’s right, old time progressives were racists, and some of them were even members of the Ku Klux Klan:

Progressivism, like the Klan, came in many flavors: There were east coast reformers who wanted business and government to work as partners and mountain state populists who distrusted such centralized power, white supremacists in the Wilson administration who did so much for segregation and anti-racists in the NAACP who wanted to censor The Birth of a Nation. You could write a book on how much of that the Klan reflected or rejected, but I’ll highlight just a few areas of overlap:

1. Progressivism had roots in the Protestant pietist tradition, and its partisans were frequently interested in reforming individuals as well as institutions. It’s a quick jump from there to the moral authoritarianism described in Charles Alexander’s books. Jane Addams, the Social Gospel activist who played such a big role in passing protective labor regulations and compulsory schooling laws, was also a critic of the “debased form of dramatic art, and a vulgar type of music” that a young person might find in the five-cent theaters, writing that it was “astounding that a city allows thousands of its youth to fill their impressionable minds with these absurdities.” Prohibition, that Klan kause kelebre, reached its height as a cause during the Progressive Era, complete with muckraking exposés of the “whiskey ring” and culminating with the passage of the eighteenth amendment in 1919.

2. Racism also had a foothold among the progressives. It might be tempting to argue that bigots like Woodrow Wilson, who introduced Jim Crow rules to the federal government, were merely progressive in some areas and reactionary in others. But the American eugenics movement was tied closely to the progressives’ drive for “scientific” reform, and its heyday covered both the Progressive Era and the ’20s. Politicians offered eugenic arguments not just for laws that banned miscegenation and allowed authorities to sterilize the allegedly unfit, but for restrictions on immigration from southern and central Europe.

3. The progressives and the Klan shared an interest in mandating public education and eliminating urban political machines. The civic-activist historians tell us that the rank-and-file Klansman’s interest in such reforms was frequently a sincere response to corruption and inadequate schooling, though it’s clear that their urban proposals owed at least something to their fear of immigrants, and that their education proposals were transparantly anti-Catholic. If the Klan’s motives were not purely nativist, then neither were the progressives’ purely benign: Just as the Klansmen sometimes shared the progressives’ hopes, the latter sometimes shared the Klansmen’s fears.


In the south they had Jim Crow segregation. In the north they had redlining and restrictive covenants. “White flight” was a northern phenomenon involving middle and upper-class whites. Many of them called themselves liberals.

Jacksonian/Truman/blue collar liberals are rednecks, ethnic whites and minorities. They are more interested in pocketbook issues and less interested in gun control and environmentalism. It’s not like they don’t care about most or all of the same things as the Stevensonian/snooty elitists, it’s about priorities.

Blue collar liberals don’t believe in a nanny state or telling people to eat their peas. Blue collar liberals aren’t ivory-tower academics who read Foucault and burn American flags. They are the descendants of the people who were killed and beaten on picket lines. The people we honor today.

Happy Labor Day.


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