effects of immigration

Information about the Effects of Immigration, Outsourcing and Expensive Trade Agreements on Georgia

 

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Is the Constitution Really Inimical To States Rights? - Part Fourteen

MYTH: Too cold for shepherds to Tend Flocks in December - Part 2

Gun Control Coming to the Senate Floor on Monday

74th Anniversary of 'Gone with the Wind' premiere

Another stupid idea - outsource our Navy to China?
by Mike Crane

The current administration seems determined to continue pushing outsourcing. Growing concerns from many sectors just bounce off like "flubber." It does not take a rocket scientist to understand that you only outsource so many jobs and industries before problems arise.

As has been shown on these pages - advanced technology products, financial services, call centers and IT product development industries are leaving empty facilities all over our landscape. But the current Administration tells us, "this is good for us."

Buried in the excerpt of an article (by Paul Craig Roberts) below is a major potential problem these failed policies are bringing to you:

Manufacturing & Technology News (July 8) reports that 80% of the components for the Virginia Class submarine come from sole sources.
( Source: http://www.manufacturingnews.com/ )

Outsourcing and the expensive trade agreements have decimated our manufacturing base. Houtsourcing effectsow can this be a surprise? Empty facilities do not produce very much. Now many do not give a hoot about where your TVs or even Maytag washing machines are built. But how about the widgets on the ships, jets and other major hardware that our military require?

It has not happened yet, so this is a potential problem, but how would you like our military being dependent on China (or any country for that matter) for their hardware? I mean after all lets let a potential enemy build our top secret weapons.

Isn't that the stupidest idea you have ever heard?

Well hang on to your seats, it is slowly happening:

The Pentagon, seeking lowest cost, is pushing defense contractors to outsource offshore for more materials, components and systems.

Read that again:

The Pentagon, seeking lowest cost, is pushing defense contractors to outsource offshore for more materials, components and systems.

Given that many components only have a single source, what happens when you move that company's facilities to a foreign country? Well that company's suppliers have to move also. So over time you have the chain reaction that is occurring industry after industry in our country. The entire industry loses critical mass and disappears.

In some industries, such as TVs, the impact is limited to lost jobs, increased deficits, increased burden on tax payers for social costs, etc. You also lose the future growth due to technological advances (such as new digital TVs). So whole new product lines and industries develop in foreign countries, bypassing our country. None of this is very good for our citizens.

When this effect spreads to defense industries we will wake up one day and find in addition to the economic losses -  we can't even build our own equipment for our national defense.

Apparently the day of reckoning is approaching on US ship building:

This year the US is producing 6 ships, one-tenth of South Korea's output. In 2006 the US is scheduled to produce only 4 ships, because China has outbid us for the steel. The US "superpower" can no longer afford to compete against China for essential materials.

Cynthia Brown, president of the American Shipbuilding Association says that "the manufacture of entire components and systems will migrate to China in the next several years under current Department of Defense policy with respect to outsourcing."
(Source: http://www.americanshipbuilding.com )

The Chinese know a sucker when they see one. They are taking advantage of American multi-national corporate greed and will let American companies provide them with the technology that they are missing. From the Department of Defense report on the China Navy:

One hindrance to China�s military development has been the reliance on foreign suppliers for key technologies.  Presently, China has the capability to produce 40% of critical ship systems and components domestically, but is striving for 100% self-sufficiency.  In a Lloyd�s List International article excerpted in the May 2005 issue of American Shipbuilder, the President of the China Association of National Shipbuilding Industry was quoted as saying that "the government should plan in entirety for this [shipbuilding] industry, and create some enterprises which are able to innovate and compete with international rivals.
(Source:
http://www.americanshipbuilding.com/news.cfm )

You can take it to the bank that as the Defense Department continues its focus on increasing outsourcing, there will be many very competitive bids from Chinese firms. Of course they would never use the technology for their own purposes, would they? As we continue down the road to losing self-sufficiency, China will gladly jump on the opportunity. This is stupid at best.

These very questionable policies are being brought to you by your elected and appointed officials. Since we have entered the era of high immigration, so-called free trade and outsourcing our country has converted from the world's largest creditor nation to the world's largest debtor nation. Today, with deficit spending and trade deficit of over a trillion dollars ($1,000,000,000,000.00) a year we have a sluggish economy. With a trillion dollars of debt a year being dumped into the economy it should be booming!

What will happen when the debt can not be sustained any longer? We all know that a trillion dollars a year debt can not continue forever and the trend has not depended on which of the two major parties was in power.

American citizens and our children are the real losers of these polices. Are we also going to let these failed policies continue to the point where they not only undermine our economy but our national defense?

That my fellow Americans is up to you. You do not have to return the elected officials that support these failed policies for another term. You can elect officials who will represent your interests - not special interests. But you can take it to the bank that if you do not make a change - nothing will change!

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The US Navy...Made in China

China-Mart Takes Over

By PAUL CRAIG ROBERTS

M y poor beloved country, trapped in a Middle Eastern quagmire and tricked by Osama bin Laden into subsidizing to the tune of $300 billion (spent or appropriated) a training ground for Muslim terrorists and insurgents while our once fabulous economy disintegrates.

If the US were still rich and just wanted to throw several hundred billion dollars at bin Laden as a good will gesture, that would be one thing. But we are borrowing the money that we are using to train Muslim terrorists to kill and maim our troops in Iraq and Londoners in England.

The money is being lent to us mainly by Asians, especially the Chinese. China has so many dollars to lend to us because we send so many dollars to China to pay for the goods and services that patriotic American corporations have decided to supply to us from China instead of from America.

US corporations decided that the way to get rich was to destroy their American consumer base by closing their American factories, throwing their US employees out of work and hiring Chinese instead. The Chinese work for less, you see, and free trade economists say lowering costs makes us better off.

What US corporations and the free trade economists overlook is that giving Americans' jobs to foreigners raises foreign incomes and lowers American incomes. When credit cards and home equity lines are maxed out, there will be nothing to support the US consumer market. The American corporations who moved their capital and technology to China will have to find new customers.

Maybe the Chinese government will let the relocated US firms sell to Chinese customers, or maybe the Chinese government will let the US firms go bankrupt. The latter favors China's strategic interest. Chinese businessmen will purchase the bankrupt firms, and Chinese businesses will sell to Chinese customers.

Americans are pouring so much money into China that China can finance our wars while it buys up our companies.

Everyone was shocked that a Chinese company could outbid Chevron for Unocal. China has already purchased IBM's personal computer business, and is now after US appliance maker Maytag (whose appliances are made in Mexico).

The outsourcing mania has hit the Pentagon, and China will soon be supplying the ships for the US Navy. The Pentagon, seeking lowest cost, is pushing defense contractors to outsource offshore for more materials, components and systems.

This means the end of US shipbuilding capability. Component suppliers to American shipbuilding are already skeletal thin, with most components only having sole suppliers. For example, Manufacturing & Technology News (July 8) reports that 80% of the components for the Virginia Class submarine come from sole sources.

With not enough US Navy ships being built to support even an industry of sole suppliers, Asia is fast becoming the only source for US Navy ships.

While President Bush spends $300 billion recruiting and training terrorists for bin Laden in Iraq, US Navy ship procurement has fallen 33% since 2001.

Meanwhile China is on a rip. China is now the third largest shipbuilder after South Korea and Japan. In five years China's submarine fleet will be twice the size of America's. In 10 years China's navy will be larger than the American fleet.

This is amazing performance for a country that as recently as 1989 had essentially no shipbuilding industry.

This year the US is producing 6 ships, one-tenth of South Korea's output. In 2006 the US is scheduled to produce only 4 ships, because China has outbid us for the steel. The US "superpower" can no longer afford to compete against China for essential materials.

Cynthia Brown, president of the American Shipbuilding Association says that "the manufacture of entire components and systems will migrate to China in the next several years under current Department of Defense policy with respect to outsourcing."

But, hey, we will get ships cheaper, and it is making us rich!

Paul Craig Roberts has held a number of academic appointments and has contributed to numerous scholarly publications. He served as Assistant Secretary of the Treasury in the Reagan administration. His graduate economics education was at the University of Virginia, the University of California at Berkeley, and Oxford University. He is coauthor of The Tyranny of Good Intentions. He can be reached at: paulcraigroberts@yahoo.com

Source: http://www.counterpunch.org/roberts07252005.html


 

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