Constructive gadfly
Rosie vs Tokyo Rose
Published on October 5, 2004 By stevendedalus In Politics

Low and mid-skilled manufacturing jobs have been shrinking, due to cheap labor abroad, not to mention the long habit, like circuit board printing and assembly, of low-tech jobs going overseas since the ‘70s, spinning off lower wage earners here to service these products. To block this runaway tide, the government should absorb the bulk of medical insurance to keep US companies relatively competitive, and engage the obvious need for massive infrastructure and environmental initiatives for the future. Though surely college grads will be needed to set the blueprints, rather than the cry that a college education, will cure this shrinkage of the middle class — highly unlikely in face of the growing menial services — there is need for a realistic training program for the skills necessary for reconstruction and innumerable spinoff employment.

Before the laissez-faire disciples cry out, permit this defense: the government can only set the stage; it is up to entrepreneurs, contractors and labor establishments to do the hard work as was the case during the depression. Admittedly the national debt will explode when enacted, but in the long run it will pay off big time by ever-increasing revenues from higher wages and modest incremental tax increases. If we can mortgage our country for defense, we can do the same to protect the nation’s standard of living which also is a matter not only beneficial to a powerful democracy but also to preserve its viability and independence. Actually the current flimflam economy supposedly doing well is on borrowed time, not only by the billions owed to foreign countries, but the millions of individuals beholden to the credit card and equity loans, annihilating any gain from the Bush tax cuts, except for the top 10 percent that are well-heeled to rapidly pay down their personal debts.

Moreover, by relieving corporations of runaway health costs, the nation can begin to take back its industry which is so necessary for the defense of this nation, and as a bonus Rosie the Riveter will take back her job from Tokyo Rose.

Copyright © 2004 Richard R. Kennedy All rights reserved. Revised: October 5, 2004.

http://stevendedalus.joeuser.com


Comments
on Oct 05, 2004
I don't own a business, so I feel uncomfortable putting in my two cents on the subject of how people should run them. But it seems that the space between CEO salaries and worker wages in America is getting wider and wider. Not that the CEO doesn't deserve to make more than his employees -- not what I'm saying at all.

As for outsourcing, I think you can't put all outsourcing in the same category. If we're talking about human rights violating sweat shops, then it's horribly wrong. But if employers are paying a good wage vs. the cost of living, the employees are talented in the field, and there is continued innovation, I can't fault any company for using whatever help makes their company more efficient.
on Oct 05, 2004
But if employers are paying a good wage vs. the cost of living, the employees are talented in the field, and there is continued innovation, I can't fault any company for using whatever help makes their company more efficient.
I couldn't agree with you more but that is not the reality.
Not that the CEO doesn't deserve to make more than his employees -- not what I'm saying at all.
Stick out your chest and say it! The salaries and perks of CEOs are outrageious.
on Oct 06, 2004
Ahh, wonderful article. The differences in salaries that CEO's receive compared to their employees is growing huge. I'm going to have to hunt down my info on the outsourcing and CEO salaries!
on Oct 07, 2004

Depends on the CEO and what they bring to the company.

Great CEOs can generate billions in revenue which creates jobs and opportunity.  Why shoudln't the top CEOs make as much as oh say a movie star or professional athlete? Where's the outrage there?

As someone who creates jobs, I can tell you some things that would actually do things to increase the middle class:

#1 Tort reform. People hear about company A suing company B all the time. Or an individual (or group of individuals) suing some company.  I got personally sued this past year. Want to know why? Because my employer (I'm the CEO but it's a class C corporation) didn't agree to just let some company use our popular icon format without a license so they sued me personally as well as our company. Totally frivelous in my opinion (ultimately settled out of court but not before tens of thousands of dollars were spent).

#2 Lower taxes on companies.  Make this up by eliminating some loopholes (such as John Edwards who creates an S corporation that pays him through dividends - clever but slimey and legal). Fewer taxes means more money to hire more people.  One easy way would be to have C corporations have lower tax brackets if they net less than $1 million a year. Then you'd have less incentive to set up as an S corporation where a lot of these loopholes exist.  BTW, Kerry's promise to raise taxes on those who make $200k or more is a bad idea.

#3 Make it easier to get work visas for foreign workers.  Better to have them coming here to the United States than us contracting them overseas which is what we're currently stuck doing often times. Then they're here in the US buying things and contributing to the economy.

#4 Let small companies pool together for health care. In Europe, health care is free so I can just work with people in Europe who are just as qualified without having to pay for their health care.  Let small businesses, the guys creating the jobs right now, band together to be able to get cheaper healthcare for their employees.

#5 Matching funds for college students who get a B average or better -- NOT means tested.